Determining the next steps for your dental practice may be one of the most significant business decisions you’ll ever make.
Whether you’re looking to reduce financial risk, seeking operational support, or planning the future of your practice through new growth opportunities or succession planning, your goals should shape every decision that follows.
That’s why the first step isn’t evaluating buyers, comparing valuations, or reviewing deal structures.
It’s defining why you’re considering a partnership in the first place.
Understanding your motivation helps you align your expectations with the realities of the process. It also helps you identify which partnership model, buyer, and long-term outcome are the right fit for you.
Before taking meetings or evaluating opportunities, ask yourself:
What am I hoping to accomplish through a partnership?
Your answer will influence everything from the type of organization you pursue, to the role you want to play after the transaction is complete.
Why Dentists Explore Partnership
Practice owners pursue partnerships for many different reasons.
Some are looking for support to continue growing. Some want to reduce the administrative burden of ownership, while others are focused on diversifying their wealth or reducing financial risk.
Common motivations include:
- Reducing administrative responsibilities
- Seeking liquidity for personal or investment goals
- Creating a succession plan
- Finding a partner to help manage or grow the business
- Reducing financial risk
- Building wealth through future equity participation
- Improving work-life balance
There is no right or wrong reason to explore partnership.
Whether you’re evaluating a traditional DSO, a DPO model, or another path forward, the important thing is understanding your priorities before evaluating your options.
The Best DSO or DPO Partnership Depends on Your Goals
One of the biggest misconceptions in today’s market is that the highest valuation automatically represents the best outcome.
In reality, the right buyer or partner depends on what you’re trying to achieve.
A dentist planning a full retirement may prioritize different outcomes than a doctor who wants to continue practicing for another decade. Likewise, a growth-minded owner may evaluate opportunities differently than someone seeking operational relief.
100% Buyout Model
The DSO purchases 100% of your practice, providing full cash proceeds at closing. Doctors typically stay on for a short transition period before exiting. This model is best suited for those seeking a straightforward sale, immediate liquidity, and a complete departure from ownership.
Buyout Model with Equity Rollover
The DSO acquires 100% of the practice, with a portion of the proceeds rolled into equity in the parent company. Doctors receive both cash at closing and the opportunity for future financial upside tied to the parent company’s performance, usually while remaining involved for several years. This option is ideal for those who want liquidity today while maintaining an investment in future growth.
Joint Venture or DPO Model
The DSO or DPO purchases a majority stake in the practice while the doctor retains ownership and continues leading the business. This structure offers ongoing income, future equity upside, and a long-term partnership for doctors who want to stay involved and participate in continued growth.
Valuation matters, but so do factors like:
- Clinical autonomy
- Team retention
- Practice culture
- Leadership involvement
- Future growth opportunities
- Long-term financial upside
As MB2 Dental Chief Development Officer Jake Berry notes:
“The right buyer may not be the one offering the highest valuation. Look past the initial numbers and figure out if this group has a proven track record of delivering on their promises.”
When you’re evaluating potential DSO or DPO partners, these factors often matter just as much as the initial offer.
Partnership Isn’t Always an Exit Strategy
Partnership is often viewed as an exit strategy.
For many dentists, it’s a growth strategy.
The right partner can provide operational support, business expertise, recruiting resources, and infrastructure that allows doctors to focus more on patient care while continuing to lead their practice.
As Dr. Geoff Gwynn shared:
“I wasn’t ready to stop practicing, but I did want to take some chips off the table and ease the financial pressure. Looking into different models helped me see I didn’t have to choose between working and securing my financial future.”
Every DSO, DPO, and dental practice transition model offers something different. The key is finding a path that aligns with your goals—not someone else’s.
Five Questions to Ask Before Exploring Partnership
Before taking meetings or evaluating offers, spend time answering these questions:
- Do I want a full exit or continued involvement?
- Am I looking for operational support, financial liquidity, or both?
- How important is preserving my team and culture?
- What parts of ownership do I want to keep?
- What do I want my professional and personal life to look like five to ten years from now?
The clearer your answers, the easier it becomes to evaluate opportunities and identify the partnership model that best fits your goals.
Download the Practice Partnership Reflection Worksheet
Answering these questions is a valuable first step, but putting your priorities on paper can make partnership conversations even more productive.
Our Practice Partnership Reflection Worksheet is designed to help you clarify your goals, identify what matters most, and evaluate opportunities with greater confidence.
Download the Practice Partnership Reflection Worksheet to begin defining what the right partnership looks like for you.
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