What the cheap-money era has taught DSOs
By Ariana Portalatin
Originally at beckersdental.com
Summary & scoring by The Bell Brief (Dr. Jennifer Bell) using the Drill-Down Protocol (Drill-Down Score) — not the original publisher.
Why it matters for dental
DSO owners and private-equity-backed groups must now generate true EBITDA rather than rely on cheap-debt acquisitions, or face bankruptcy risk and reduced exit multiples.
Key points
- Mark Greenstein, Chief Growth Officer at Heartland Dental, states that groups formed 2018–COVID grew solely on low interest rates and are now focused on creating value through doctor retention and community stability.
- Geith Kallas, DDS, CEO of Smile Maker’s Dental Center, reports that 2023–2026 debt costs of 9.5–11 % and 6–8× EBITDA multiples have ended the era of buying practices at 15× multiples with 4 % loans.
- Hamza Asumah, MD, Director of Operations for Juniper Services, notes that acquisition structures are shifting toward quality and ease of integration, and that some smaller DSOs will struggle with post-purchase infrastructure.
- Geith Kallas predicts a number of DSOs that expanded on cheap debt will go bankrupt within the next 18 months.
Who should care
Read the original on Becker's Dental + DSO Review
Full reporting and any paywall content live on beckersdental.com. We summarize and score; we do not republish.
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