Selling Your Practice to a DSO Starts With NextLevel
Your Complete Guide to preparing, qualifying, and joining a Dental Service Organization.
Unlock Your Practice’s Full Potential
For the last several years, a full-scale consolidation has been happening in the dental industry. Dentists across the country have been selling their practices to Dental Service Organizations (DSO), often at a significantly higher price than they could have garnered from a private sale.
With prices like these, it’s no wonder that your interest has been piqued. One transaction could be your invitation to financial freedom, and even generational wealth.
But is it worth it? What is life in a DSO like? How do you get one of those impressive prices? What do you need to do to prepare?
This guide will answer these questions and more, pointing you in the direction of programs and resources at NextLevel Practice to make sure you attain success.
Here’s What We’ll Cover
1. What is a DSO (Dental Support Organization)?
A Dental Support Organization (DSO) is a business model that provides administrative, operational, and managerial support to dental practices, allowing practice owners to focus on delivering quality patient care.
Most DSOs are owned and operated by private equity firms, though they can also be owned by dentists themselves or other global investment groups. Dental DSOs run the non-clinical aspects of a dental practice in much the same way as other large corporations.
DSOs help dental practices streamline their operations and reduce the burden of day-to-day management tasks by offering a range of services such as:
- Human resources
- Marketing
- Billing
- Compliance
- Technology solutions
There is a wide variety of DSOs today. Heartland Dental is currently the largest DSO in the US, with more than 1600 practices, but other DSOs may have 10 or fewer practices. Similarly, business philosophy and other practices vary widely between organizations.
Overall, though, DSOs are meant to allow dentists to leverage the infrastructure of a larger organization while maintaining clinical autonomy and enhancing the overall patient experience.
2. Key Benefits of Partnering with a DSO Dental Support Organization
Selling your dental practice to a Dental Support Organization offers several key benefits that can significantly enhance both the financial and operational aspects of your practice.
- Financial Security and Liquidity: One of the most compelling reasons to sell your practice to a DSO dental organization is the opportunity to secure a substantial financial payout. DSOs often offer competitive purchase prices based on the value of your practice, which can provide immediate liquidity and financial security for your future. In addition, many DSOs offer dentists the option to retain a minority ownership stake in the practice post-sale, allowing you to benefit from ongoing profits.
- Reduced Operational Burden: As a part of a Dental Support Organization, you no longer need to deal with the complexities of managing day-to-day operations. DSOs handle administrative tasks like billing, human resources, compliance, and marketing, freeing up your time to focus on what you do best—caring for your patients. This can lead to less stress and burnout, while improving the overall quality of care provided.
- Access to Advanced Technology and Resources: DSOs provide access to state-of-the-art equipment, software, and technology that may be financially out of reach for independent practices. By partnering with a dental DSO, your practice can leverage these tools to enhance patient care, streamline operations, and improve efficiency, without the upfront costs typically associated with such investments.
- Better Negotiating Power and Financial Leverage: DSOs work with large networks of dental practices, which means they have significant bargaining power with suppliers, insurance companies, and vendors. As part of a Dental DSO, your practice can benefit from lower supply costs, improved vendor relationships, and better terms on everything from equipment to insurance reimbursements.
- Long-Term Practice Growth: Joining a DSO allows your practice to scale more quickly through access to capital, marketing expertise, and management support. This means your practice can expand its reach, attract more patients, and grow faster than it would independently, leading to higher long-term profitability and sustainability. And if you retained a percentage of ownership during your initial negotiations, that growth means more money in your pocket.
- Enhanced Work-Life Balance: Selling your practice to a Dental Support Organization can provide a healthier work-life balance. With less administrative pressure and greater financial freedom, many dentists find that they can enjoy more time off, reduce work stress, and focus on personal goals while still benefiting from their continued involvement in the practice. Many even choose to retire well before they originally planned.
Of course, a successful sale (which brings all of these benefits) is not a given. DSOs have a high bar of entry, which means that practice owners must spend concerted time and effort to qualify.
That’s where NextLevel Practice comes in.
3. Why You Should Choose NextLevel Practice for Your DSO Preparation
Selling your practice to a DSO requires careful preparation. It’s not just about ticking off a checklist of requirements—it’s about positioning your practice to become a long-term asset in the DSOs organization. Here’s why NextLevel Practice is your ideal partner in this transformative process:
Expert Guidance for Strategic Alignment
NextLevel Practice operates its own DSO, so we don’t just offer consulting—we bring strategic insights and actionable advice that comes from real-world experience. We understand the complex dynamics at play when aligning a dental practice with a DSO’s operational and financial goals. Our preparation strategies ensure your practice won’t just qualify for a DSO, but thrive once you’re there.
A Track Record of Proven Success
Our Profitability Foundations Program has successfully helped numerous dental practices refine their operations, increase profitability, and qualify for acquisition by top Dental DSO companies. This program is designed to elevate your practice’s value, preparing it not only to meet but exceed the expectations of any potential DSO partner.
Holistic Coaching and Technological Integration
We offer more than just business consulting. Our comprehensive approach incorporates personalized coaching, cutting-edge software tools, and ongoing support that empowers you to drive your practice’s success. We guide you on operational adjustments, financial optimization, and leadership development to ensure your practice meets DSO standards and thrives post-transition.
4. How Next Level Practice Can Help
Qualify for DSO Dental Support Organization
Breeze through DSO qualifications with NextLevel’s Profitability Foundations Program.
Preparing for a Dental Support Organization partnership requires more than just financial metrics—it’s about strategic decision-making and operational excellence. NextLevel Practice’s Profitability Foundations Program helps you navigate the critical steps required to qualify for dental DSO integration:
- Maximize EBITDA for Stronger Valuation: EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amoritization) is the benchmark used to determine your practice’s financial strength and attractiveness to DSOs. We focus on improving profitability, cutting unnecessary costs, and optimizing revenue streams to increase your EBITDA, ensuring your practice is a top contender for acquisition.
- Align Your Team with DSO Goals: Operational success is a team effort. Preparing your staff and leadership to embrace DSO-driven changes—such as new processes, technologies, and cultures—ensures a smooth transition and long-term success.
- Meet or Exceed DSO Benchmarks: We don’t just help you meet basic criteria; we work with you to surpass the minimum standards and position your practice as a sought-after asset in the Dental DSO market.
5. Join a Doctor-Focused DSO
Meet the NextLevel Doctors Group.
The NextLevel Doctors Group leverages the power of a roll-up DSO to create an exclusive Dental Service Organization for dental practice owners who want to maximize the value of their practices while maintaining control and autonomy.
By joining forces with other like-minded practitioners and selling a percentage of your practice to a private equity firm, you can increase your practice’s valuation and secure a better financial outcome. What sets this group apart is the ability to retain clinical independence, allowing you to continue providing excellent patient care while benefiting from the power of collaboration and negotiation.
Joining the NextLevel Doctors Group offers several key benefits:
- Increased Negotiation Power: Banding together with other successful practice owners gives you a stronger voice when negotiating terms and protecting your interests.
- Financial Growth: By combining your practice with others, you benefit from a higher group valuation and the potential for a second payout after a few years.
- Ongoing Support: With personalized coaching for every member of your team, you’ll receive continuous guidance to improve leadership, team cohesion, and patient care, ensuring long-term success.
This is your chance to secure both your financial future and the integrity of your practice.
6. Fast-Track Your Preparation
NextLevel’s 90 Day Practice Sale Programs helps you prepare in just three months.
We understand that if you’re ready to sell, you don’t want to drag your heels. That’s why we created the 90-Day Practice Sale Program: to help you quickly optimize your business to achieve the highest possible sale value. By focusing on improving key financial metrics and operational efficiencies like cash flow, patient retention, and EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization), you’ll be prepared for all the qualification requirements DSOs will throw at you.
The targeted, data-driven approach helps you maximize your valuation and streamline the process of selling by:
- Increasing Your Practice Value: By focusing on the key performance indicators (KPIs) that matter most to DSOs, you can increase your practice’s value.
- Accelerating Your Timeline: Ensure you’re ready to make a profitable sale in just 90 days rather than waiting for years.
- Keeping You Accountable: Weekly coaching sessions with a profitability strategist ensure that you’re making measurable progress toward your goals.
Ensure that your practice meets DSO standards that will secure top dollar and a smooth transition…in just 90 days
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Why Act Now?
Prepare Your Practice for a Dental DSO Partnership
The shift toward Dental DSO partnerships is not a passing trend—it’s an industry evolution that has already begun reshaping the dental world. The longer you delay preparing your practice for this transition, the more likely you’ll miss out on the significant advantages that DSOs offer.
DSOs are actively seeking practices that are ready to scale and thrive. Waiting until your practice is underperforming or struggling to stay competitive could result in missed opportunities.
The first place for you to start is a free call with NextLevel Practice. You can ask our DSO expert your questions, talk about your goals, and see if any of our DSO programs are right for you.
Get Started Today
Transform Your Practice for DSO Success
The potential of your practice is incredible! NextLevel Practice is here to help you unlock that potential and enjoy the benefits for a lifetime. We help you position your dental practice as an asset that commands the attention of the most respected Dental DSO companies. With the right preparation, you can enter the DSO marketplace with confidence, securing your practice’s future for years to come.
Don’t wait for the market to change—be the one driving the change. Start your DSO journey today.
