Lexology May 31, 2024
DSO rollups have been a popular investment strategy in the healthcare sector among private equity sponsors in recent years. However, some DSOs have struggled to achieve targeted synergies and integrate effectively despite the promise of scaling an attractive business model. In order to maximize value from their portfolio of dental practices, DSOs must address a variety of challenges common within the dentistry subsector. Stakeholders should be aware of the risks and opportunities of DSOs within their portfolio prior to investing in these platforms, and need to develop corresponding mitigation plans.
Trends in the DSO Industry Highlight an Appetite for Investment in a Fragmented Market
Over the past decade, the dentistry market has experienced significant growth in private equity-driven M&A activity,...