DSO – Dental Service Organization

Dental Service Organization

The DSO acquires and operates dental practices. The main exit strategy of dentists is selling or partnering with a DSO.

Active Consolidation Market

Premium private equity funds such as KKR, Blackstone, Partners Group, Mid Ocean, Audax, Harvest, Mubadala and many others are invested in DSOs. The Private Equity groups are consistently expanding their DSO portfolio and actively searching to expand by acquiring and consolidating with other DSOs.

Market Growth

Although the historical annual growth of the dental sector has been 3%, the DSO segment has demonstrated approx. 14% in recent years while solo practices segment is shrinking. Recent report published by William Blair projects 15% annual growth in the next five years.

Industry Risk

Overall Healthcare Services market is stable and growing. Roligo Dental focuses on the General Practitioners (GP) market which provides “bread and butter” dentistry that historically showed hard demand during good and bad times.

Synergies

The DSO creates a significant added value post acquisitions due to scale and strong synergies in marketing, financials, purchasing, HR and customer service.

Deal Flow

80% of the US dental practice market is fragmented (North-East is about 90% fragmented) and there is a strong trend of consolidation into DSOs.

Projected Annual Market Growth (2021-2027)

0 %

Fragmented market in the North-East

0 %

2021 U.S. Market Size

0 B+

Number of dental practices in U.S.

0 K+

Why Would A Dentist Sell To A Dso?

01

To receive a substantial premium on the practice purchase price compared to a private buyer.

02

To unload some or all the management burden, thereby having less stress and a better work/life balance.

03

To take advantage of the economies of scale and support a DSO can offer.

04

To retire debt-free with accumulate substantial liquidity/ retirement savings.

05

To fund future growth/expansion. To earn significant upside on the rollover.

06

To earn significant upside on the rollover equity.