If you’ve been dreaming of retiring to a beach in Hawaii but holding off because of instability in the economy, market uncertainties, or just plain hesitation, now may be the time to act.

The ongoing recovery from COVID has accompanied a boom in the dental market. Specifically, DSOs are buying everything they can get — and paying a premium to do it.

Why? Because the demand far outstrips the supply. Fear of future increases in capital gains rates led many owners to sell in 2021. Three months into the new year, the pool of practices on the market has shrunk dramatically, leaving DSOs and their private equity backers scrambling to find new acquisition targets. 

So few practices are available that owners are seeing returns of 9 to 10 times their EBITDA (a metric that measures financial performance).

To get a sense of your options, we suggest working with a firm that specializes in dental mergers and acquisitions rather than a broker who lacks experience in dentistry. They can advise you on the process, help you decide if and when to pull the trigger, and even negotiate on your behalf.

Maui awaits.