The Dental Truth Project

The DSO Valuation Crash No One Talks About (E.5)

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Investment banker Gareth Petsch exposes the brutal reality crushing DSO owners: despite years of promises about dental being a "safe investment," the M&A market has completely collapsed - and the deals that worked in 2021 are now failing spectacularly in 2024, leaving owners trapped with businesses they can't exit.⁣

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Key Revelations:⁣
The Great DSO Valuation Crash⁣

  • Investors have abandoned dental for Med Spas, AI, and behavioral health⁣
  • Only "ultra-clean" deals are closing - ANY problems = deal killer⁣
  • Investors realize they have zero pricing control in dental⁣
  • Insurance companies take years to increase reimbursements, while costs spike immediately⁣
  • Post-COVID costs exploded - staff, supplies, and interest rates all spiked⁣

    • ⁣

    💡 The "Ask Ken" Question:⁣
    What's the fastest way to know if you'll run out of cash? ⁣
    Ken's lifesaving answer: Build a 13-week cash flow forecast - project payroll, expenses, and collections 3 months out. Most practice failures occur because owners fail to recognize the impending cash crunch.⁣
    ⁣
    Free Resource:  ⁣
    13-Week Cash Forecast - https://resources.accrudent.com/accrudent_13_week_cash_forecast ⁣
    ⁣
    Got a burning question about dental finance?⁣
    Submit your question, and it could be featured in a future episode.⁣
    Ask Ken Form: https://resources.accrudent.com/ask-ken-form-the-dental-truth-project ⁣

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    The Dental Truth ProjectBy The Dental Truth Project