Why are Dental Service Organizations on a buying frenzy?  What is driving this industry-disrupting transfer of ownership of dental practices from doctors to big corporations?

Three MONEY EVENTS drive the unstoppable DSO expansion. 

  1. Starting at the TOP – private equity money managed by Wall Street brokerage houses and hedge funds is available in virtually UNLIMITED amounts for investment in any solid business that has below average risk - and generates an above average return.

Dental practices qualify on both counts, creating an ARBITRAGE OPPORTUNITY* for an entrepreneur with the ability to BUY and BUNDLE profitable dental practices.

*Arbitrage refers to the practice of buying an asset for fair market value in one market and selling it for a higher price in a different market where different factors drive value.

  1. Brokerage houses and hedge funds won’t do small transactions. However, brokerage houses and hedge funds will soon indirectly own the majority of all dental practices in America.  The face of the organization will not be Merrell Lynch or Bridgewater.  The face will be the DSOs they own that consists of HUNDREDS of dental practices. 

It goes like this: little fish are eaten by BIG fish, who are eaten by BIGGER fish, all the way up to Wall Street.  And, when done well, from the bundler who pulls together 15 practices and sells them – to the bundler who will only buy 15 or 30 or 50 practices bundles, everyone can earn a huge fortune over a short time. 

That statement, “everyone can earn a huge fortune over a short time” is the driving force behind the DSO march across America.  

  1. It all works because of the VALUE DISCREPANCY that exists between Main Street and Wall Street. Put simply, a profitable dental practice is worth FAR MORE to investors who want safety and yield, than it is to another doctor.  And, big DSOs that buy practices 15 or 30 or 50 at a time, will pay a BIG PREMIUM above a small bundlers’ acquisition cost for a basket of high-profit practices.  

With that value discrepancy in place, even a small bundler who pulls together as few as ten to fifteen good dental practices over a few short years, may net $25 million to $50 million dollars profit in a single sale to the larger entity. And, the ‘larger entity’ is READY, WILLING and ABLE to make the purchase when the bundle is complete.   

With small bundlers looking at REALISTIC $25 million to $50 million dollar paydays for a few years work, and larger bundlers who buy practices 15 to 50 at a time looking at paydays several times that, the DSO race to bundle dental practices is in full swing. 

From one end of the DSO continuum to the other…

…From YOU with a profitable practice – to the bundlers in the middle, to the Wall Street brokerage houses and hedge funds with unlimited investment capital, the DSO expansion across America is like the California Gold Rush… If you recognize the opportunity, know the right people, and take the right steps, you can become fabulously wealthy.