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DEALING WITH A DSO

The dental landscape in Canada is changing. Dental Service Organizations (DSOs) are becoming more established and prominent. It is very likely that you will be approached to sell to, partner with or join a DSO as an associate at some point in your career. When that call comes, will you be ready? DMC is ready. By immersing ourselves in the dental community since 2010, we have been at the forefront of dealing with DSOs. We have the knowledge, experience and skills to negotiate the best terms on your sale, partnership or associate agreement.

How we help

DMC gives you peace of mind when dealing with a DSO because we understand the unique legal and business requirements that arise in DSO transactions. We are in the best position to negotiate the best deal for you as we have been involved in countless DSO transactions and can use that experience to your advantage. DMC can safely guide you through the process of selling to, partnering with, or joining as DSO while offering specific strategies and tools to help you achieve your objectives.

What is a “DSO”?

A “DSO” is a “Dental Services Organization” or a “Dental Support Organization”. The concept of a DSO is that, by dividing the business administration of owning/operating a dental clinic (marketing, equipment, technology, personnel, etc.) from the actual provision of dental services (treatment of oral diseases), the dental practice can run more efficiently allowing the dentist to provide more focused patient care and enhanced treatment. There are many different DSO models, but the most typical model involves a management corporation providing equipment to a dentistry professional corporation along with business and administrative support services, such as leasing space, human resources, marketing, patient scheduling and financial management. Importantly, the regular corporation does not interfere with the dentist’s clinical judgment.

What is unique about selling to a DSO?

You only have one chance to sell, so you need to do it right. DSOs are sophisticated, have vast resources and much more experience with buying practices than you have with selling. Transactions with DSOs are never a straightforward sale. There are many legal, accounting, tax and due diligence particulars involved in every deal as well as issues you likely didn’t plan for (e.g. the sale structure the DSO will require). Before starting negotiations with any DSO, you need to equip yourself with the right legal team to protect yourself. With DMC, you can rest assured that we have experienced the nuances and negotiations before and will actively protect your rights and promote your goals at every stage.

Should I join a DSO as an associate?

Like dentists, no two DSOs are alike. When deciding whether to join or work with a DSO you need to consider not only the culture of the company but also the terms of the contract you will be presented with and what you are signing up for. Often there will be fine print that can significantly affect your day to day practice and future opportunities. By properly negotiating the associate agreement, you can pre-empt issues before they arise and insulate yourself from potential adversity. We’ve seen all types of associate arrangements and agreements, whether the associateship comes from the sale of a practice or the position was applied for directly, which has given us the unique understanding necessary to assist you in negotiating the best terms for your future working relationship.

Get in touch with us

Give us a call at 416.443.9280
or email us using the form below






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