The one-word answer is: YIELD.

A well-run dental practice makes a huge profit, far greater than anything a passive investor could ever hope to realize with bonds, treasury bills or interest on a money market account.

Here it is on a napkin…  

Money makes the world go around.  Investors love yield.  And, brokerage houses and hedge funds can sell ANYTHING that promises better-than-average safety, with a higher-than-average return. 

Wall Street has a love affair with consolidating high-profit businesses and then selling shares to investors who want a high degree of safety and a higher-than-average yield on their money.

Real Estate Investment Trusts (REITs) are a perfect example. 

Private Equity Firms own much of the skyline of every major city in America.  They buy office buildings, warehouses and apartment complexes.  Manage them efficiently.  Optimize revenue.  And, share profits with investors who buy shares in the REITs. 

This model of buying successful businesses, bundling them into a single entity, (like a DSO or a REIT), and optimizing revenue - often with the goal of selling the entire enterprise to an even LARGER entity for a MASSIVE PROFIT - is what drives the rapid expansion of corporate-owned dental practices. 

The end game is simple. 

When someone in Home Town, USA visits a dentist, Wall Street wants the profit.

The odds of this happening on a huge scale are 100%.  Private equity funded DSOs already own about 15% of all the dental practices in America.  And, over the next several years that number will likely double - AND DOUBLE AGAIN before this DSO buying frenzy begins to slow.

DSOs are expanding rapidly with no end in sight, because the opportunity to make millions of dollars over a short time for everyone involved, including you, is real. 

Doctors who take advantage of this are getting rich, and still working chairside - with no management responsibility, and full waiting rooms. 

Doctors who ignore what’s happening and fail to respond by joining a DSO, or by taking steps to insulate their practices from competition with professional management teams and unlimited marketing budgets, are being crushed. 

Ultimately, DSOs are expanding at a RAPID rate because…

The math works exceptionally well.