Insight Into Which Dental Specialties Are Seeing Growth
Key Takeaways
- DSO buyers typically evaluate dental practices through five core risk factors.
- Buyer interest and value drivers vary by specialty.
- While DSO consolidation continues, private practice dentistry remains a strong path.
If you are considering selling to a Dental Service Organization (DSO), understanding what drives corporate buyer decisions is the fastest way to strengthen your practice’s value. The DSO market continues to grow across general and specialty dentistry, but corporate buyers remain selective.
According to 7 Pillars Chief Development Officer Brian Christensen, CFA, every DSO begins by evaluating a practice’s risk profile. This assessment shapes both your valuation and your likelihood of receiving a strong offer, which is why knowing these criteria in advance gives you an advantage when preparing for a transition.
DSOs typically assess five core risk factors:
- Geography (urban or rural)
- Clean financials and practice management data
- Payer mix
- Case mix
- Staff turnover
“There will always be transitions from doctor to doctor because there are doctors who just philosophically disagree with selling to a DSO,” says Brian. “The DSO market will operate side by side with private practice dentistry.”
SPECIALTY INTEREST AND WHAT MATTERS TO DSO BUYERS
Although these core risk factors shape every DSO transaction, the characteristics that drive value differ by specialty. Each discipline has its own market dynamics, demand patterns and strategic appeal. Understanding how DSOs evaluate your specific area of practice can help you identify strengths, address gaps and better position your practice before a potential sale.
General Dentistry
In general dentistry, DSO buyers look for practices with clear growth potential that they can scale and improve. Geography, size and payer mix all factor in.
The DSO movement started in general dentistry. Most DSOs still focus on general dentistry acquisitions, often within a defined geography. Roughly 20–25% of general dentistry practices are consolidated into DSOs today.
“I don’t think it’ll ever get to 100% consolidated,” says Brian. “Some practices are too small, too remote to recruit a successor, or the owner prefers private practice. The space will continue consolidating. It’ll probably get to 50% roughly.”
Oral Surgery
Oral surgery remains one of the strongest and most resilient specialties in dentistry, making it one of the most attractive. Long-term capital is flowing into the specialty. Younger surgeons often prefer stability and support over owning a solo practice. Complex surgical work is difficult to replace and referral patterns favor surgeons over general dentists for intensive cases.
In a market where many dental specialties compete primarily on price and volume, oral surgery sets itself apart by combining high complexity with an irreplaceable value to patients. These are qualities buyers and investors continue to value at a premium.
Pediatric Dentistry
Pediatric dentistry is attracting strategic buyers and private equity because of the lifetime value of a patient.
“Pediatric dentists control the clinical outcome of that patient for at least 18 years,” says Brian.
Because parents are deeply motivated to protect their children’s health and well-being, and dental care is often viewed as medically necessary, patient demand tends to stay steady even during economic ups and downs.
In addition, pediatric dentists often influence subsequent care choices such as general dentistry, orthodontics, or oral surgery.
“That referral power has driven higher valuations and made pediatric dentistry a key target,” says Brian.
Orthodontics
Orthodontic practices attract corporate buyers selectively, since their value often depends on economic sensitivity, patient mix and the strength of established referral channels.
Orthodontic practices tend to ebb and flow, especially those with an adult-heavy patient mix that relies on discretionary spend. Practices with a child-heavy mix tend to be more resilient because parents prioritize their children’s care.
Brian says some DSOs are choosing to hire in-house orthodontists after acquiring pediatric practices rather than buying adjacent ortho groups.
“That’s why we’ve noticed ortho become a little bit more consumer-facing with their marketing. It’s historically been a very referral-based specialty where they rely on pediatric dentists and GPs to send them cases, but now ortho practices are doing more digital marketing,” says Brian.
Preparing for a potential DSO transition begins with understanding what buyers value and how your specialty fits within the broader market. 7 Pillars offers a complimentary, confidential one-hour conversation that includes a high-level review of your practice.
For advice on optimizing your practice before a potential transition or questions about business and personal wealth, schedule a free consultation with the CWA team.
Learn More
Whether you’re planning your next move or exploring what’s possible, 7 Pillars’ new podcast The Advisor’s Table gives you a seat at the table and shows you how informed decisions begin.
