What Dentists and Investors Should Know About DSO Private Equity Trends in 2025

Private equity activity in dentistry is booming again in 2025 — are you ready to capitalize on it?

Dental Service Organizations (DSOs) are attracting major investment, but today’s deals look a lot different than they did just a few years ago.

We’re seeing:

• More flexible deal structures with equity participation

• Growing interest in specialty dental practices

• A big push for AI and tech to boost practice profitability

• Doctor-led partnership models that let dentists keep clinical control

If you’re thinking about selling your dental practice or partnering with a DSO, timing and structure are everything. Let’s take a closer look at what’s driving today’s deals and what it could mean for your future.

DSO Investment Is Booming Again

After a bit of a slowdown in 2023 and 2024, PE activity in dental is back in full swing this year. Lower interest rates and a strong demand for healthcare investments have brought buyers back to the table. In fact, March alone saw over 15 deals involving dental groups.

Private equity firms aren’t just buying practices—they’re building bigger platforms, expanding into new markets, and looking for ways to add value beyond just adding more locations.

It’s All About Efficiency and Technology

One of the biggest shifts this year is how DSOs are using technology to streamline operations. Many are moving away from outdated or disconnected software and adopting cloud-based systems that make scheduling, billing, and patient communications easier.

AI is also starting to make its way into dental offices—not to replace dentists, but to make tasks like imaging, treatment planning, and revenue cycle management more efficient. This tech focus helps DSOs run smoother and more profitably, which is exactly what investors like to see.

New Deal Structures Give Dentists a Bigger Piece of the Pie

It’s not just about selling your practice for a lump sum anymore. Many PE firms now offer deal structures that let you keep some skin in the game. You might get an upfront payment, but also retain some ownership or have the chance to earn more if the practice hits certain goals.

This way, you benefit from the future growth of the business while getting access to the resources and support that a larger organization provides.

Specialty Practices Are Getting More Attention

While general dentistry is still a big focus, PE firms are increasingly looking at specialty practices like oral surgery, endodontics, and periodontics. These areas tend to have higher revenue per patient, making them attractive targets for investors looking to grow profits quickly.

Doctor-Led Models Are on the Rise

Another interesting trend is the rise of doctor-led or minority-ownership DSOs. These models let dentists keep more control over patient care while getting the benefits of being part of a larger organization. It’s a win-win for dentists who want to stay involved but don’t want to handle all the back-office headaches.

What’s the Bottom Line for Dentists?

If you’re thinking about selling your practice or joining a DSO, 2025 could be the right time to make your move. The market is active, buyers are offering creative deal structures, and there’s more flexibility than ever to find a partnership that works for you.

But here’s the thing—you don’t want to go into it alone. Understanding the financial and legal details of these deals is critical to making sure you get the value you deserve.

Final Thoughts

Private equity’s interest in dental isn’t slowing down anytime soon. With the right strategy, this could be a great opportunity for practice owners to unlock value, grow their careers, and improve their financial future.