What is a Good Age to Sell Your Dental Practice to a DSO?

by Darren Sardoff, President & Chief Investment Officer at King’s Ransom Group

There's no single "good age" to sell your dental practice  to a DSO, as it depends on a variety of factors, including  your personal goals, career aspirations, practice  performance, and the current market landscape.  However, here are some key considerations regarding  age and DSO transitions:

Age and DSO Valuation: 

• Younger Dentists (under 45): Generally valued more  by DSOs due to their longer potential earning power  and ability to contribute to future growth. This often  opens up more options, including partnerships with  the DSO and potential equity stakes. 

• Mid-Career Dentists (45-55): Still highly valuable to  DSOs, especially if the practice is  thriving. However, potential transition time  commitment becomes more important for the DSO  to factor in. 

• Older Dentists (55+): While value may decrease  slightly, experienced dentists can still attract DSOs  seeking operational expertise and established patient  bases. 

Other Factors to Consider: 

• Reason for Selling: Retiring, pursuing other  ventures, burnout, or wanting to reduce  administrative burden can all influence your ideal  timing. 

• Practice Performance: Financially healthy, well managed practices attract higher offers and provide  more flexibility in timing. 

• DSO Type and Strategy: Different DSOs have  different preferences for partner dentists and practice  types. Research their priorities and find a good fit. 

• Market Conditions: Consider the overall DSO  consolidation landscape and potential competition  for your practice. 

Recommendations: 

• Start Planning Early: Research DSO options and  discuss your plans with financial and legal advisors  well before you're ready to sell. 

• Don't Fixate on Age: Focus on maximizing your  practice's value and finding the right DSO fit for  your goals. 

• Seek Professional Guidance: Consulting experienced  dental transition advisors can help you navigate the  complex process and secure the best deal. 

Ultimately, the "good age" is the one that aligns with  your personal and professional objectives, maximizes  your practice's value, and secures a smooth transition  with the right DSO partner.

Explore DentyVal

We also want to highlight DentyVal, our proprietary dental practice valuation tool. DentyVal offers a free, confidential, and unbiased estimate of your practice's value in just minutes. Whether you’re contemplating selling, considering growth options, or simply curious about your practice’s worth, DentyVal can help you make informed decisions.

To get your personalized valuation estimate, visit DentyVal and complete the short questionnaire. It’s quick, easy, and entirely confidential.