Dentists are increasingly partnering with dental service organizations (DSOs) to address burnout, staffing challenges, and declining reimbursement rather than simply retiring. The two most critical mistakes to avoid are failing to prepare financially years in advance and accepting unsolicited offers without a competitive bidding process, as working with trusted advisors and understanding your practice numbers can significantly increase deal value.
- Dentist burnout spans all ages, from early 30s to 60s, driven by inflation, staffing challenges, and stagnant reimbursement rates
- A competitive bidding process with six to eight DSOs significantly improves seller outcomes and prevents buyers from dictating unfavorable terms
- The first critical mistake is lack of preparation—dentists should understand their numbers years before selling by working with CPAs and financial advisors
- The second mistake is accepting unsolicited offers, which typically aim for the lowest price; employment agreement terms matter as much as the headline purchase price
- DSOs handle back-office operations like marketing, HR, payroll, and revenue cycle management while respecting clinical decisions and existing team culture
Some of the dentists who call Connor Jorgensen are not looking to retire or expand. They simply say they love what they do but hate how they are doing it.
In this episode of The DrBicuspid.com Podcast, host Kevin Henry talks with Jorgensen of Tusk Practice Sales, a sell-side advisory firm that represents only sellers and dentists pursuing a dental service organization (DSO) or private equity partnership. Tusk says it has facilitated practice sales for over a decade and has handled more than $1.5 billion in transactions. Jorgensen spent 15 years in dentistry, including time as a DSO buyer, and says that gives him a view of both sides.
He organizes the doctors he works with into three groups: those sunsetting their careers, those who want a strategic partner to fuel growth, and a third group he says is growing -- doctors suffering burnout. That burnout cuts across ages, from early 30s to 60s. Jorgensen points to inflation, staffing challenges and stagnant or declining reimbursement, and says owners are spending more time on the business than in it.
Asked whether DSOs have the upper hand when a seller is burned out, Jorgensen says a competitive process, with six to eight groups bidding, works in the seller's favor. He says a DSO's job is to handle the back office, such as marketing, human resources, payroll, and revenue cycle management, and not to dictate clinical decisions. Many sellers also have their team in mind, he says, and buyers typically do not want to disrupt the culture they are paying a premium for.
Jorgensen names two mistakes he commonly sees. The first is not being prepared. He urges doctors to understand their numbers years before they plan to sell and work with a certified public accountant (CPA), a financial adviser, or a transaction adviser.
The second is accepting an unsolicited offer. Jorgensen says a buyer who knocks on your door aims to purchase at the lowest price you would say yes to. Terms, such as a five-year employment agreement, matter as much as the headline number.
His main message is to start early and build a team of trusted advisers, including an attorney, CPA, and financial adviser. Tusk also offers a complimentary valuation analysis.
This is the first of two conversations. The next episode with Jorgensen predicts what the dental practice sale landscape looks like in 2031.
Listen to the full conversation below.
