When an IDSO is backed by proven financial sponsors with multiple IDSO experience, the risks are lower, and the odds of success and large returns are much higher.
The boom in dental consolidation has attracted all types of investors. Some have a pedigree in dental practice consolidation over the last 30 years and some have no clue and no strategy. Two newish (a year or so old) IDSOs have recently begun partnering with LPS clients and I predict these clients will make 5x their retained equity value in the next three years or less. That is the investor’s track record in dental. Build fast and monetize. They have done it 7 times. Doctors should always bet on the money, not the management. Management comes and goes, but money trumps management and will fix management if they have to. Bet on proven money.
- Practice Partnership Podcast Ep 14: The Surprising Drivers of High-Value Practices - December 11, 2024
- Death, Taxes, & Dental Practices: The power of diversification - December 5, 2024
- Decisions in Dentistry: The Rise of Invisible DSOs - December 4, 2024