THE DENTAL TRANSITION NEWSLETTER
Published on
- 25-05-2026
Are Solo Buyers a Thing of the Past?
Not so Fast….
With so much focus on the DSO industry reshaping the landscape of dentistry, it’s no wonder that potential sellers worry there may not be enough solo dentists looking to buy practices.
As a dental practice broker, we find the truth is much more nuanced than the DSO industry would have you believe and that the solo prospects are, in fact, plentiful.
While the DSO industry has done a remarkably good job of convincing practice owners that private practice is fading due to management difficulties, high operating costs, and inefficiencies, the substantial funding behind this advertising/marketing campaign has overstated one aspect of the full picture. In reality, DSO growth is challenged due to higher interest rates, DSO failures, and unhappy DSO sellers that were told one thing and experienced another. According to the latest ADA figures; only (8%) of Iowa (15%) of Illinois dentists are affiliated with DSOs. The higher States being Arizona, Colorado, Florida, Georgia, Nevada, and Texas…all being 23% to 27%.
At the other end of the spectrum, DSOs successfully persuaded dental school students that their future lies in corporate dentistry. But after several years, these young dentists realize that they can earn much more money owning their own practice. The pattern has become a new trend of working for a DSO for several years as a new dentist, then buying your own practice. This is really no different from the past, where dentists worked for a group private practice before purchasing their own.
Here’s what the numbers reveal about evolving buyer-pool trends, according to the latest analysis from the ADA’s The U.S. Dentist Workforce – 2025 Update:
- Dental school enrollment is up. First-year enrollment was 7,013 in 2024, up from 6,708 the prior year.
- The supply of dentists is projected to increase through 2040, driven in part by the opening of new dental schools. In 2024, there was a record number of dental school graduates. Over the last two decades, the number of graduates has increased by 58%.
- Since 2001, 21 new dental schools have opened in the U.S., bringing the total to 75 as of 2025.
- In 2024, 26.5% of early-career dentists (up to 10 years out of dental school) started their careers working for a DSO.
- Practice ownership appears delayed among recent graduates, but most dentists eventually become practice owners. Among 2011-2015 dental graduates, practice ownership jumped from 33% to 58% in just a five-year span.
- Dentists can earn more income by working for themselves. In 2024, the average inflation-adjusted income for practice owners was $217,781 compared to $160,891 for non-owners.*
With rising healthcare costs for employees and difficulties in finding hygienists, dental assistants, and administrative staff, private practice certainly has its challenges. But the practice owners who are efficiently high producers, that learn to maximize technology and leverage social media to attract new patients thrive and will continue to do so. Potential buyers…many having learned DSO life is not for them and seeking the rewards of private practice…know this and will always seek the opportunity to purchase a private practice.
In summary, the narrative of the young dentist may have changed, but the endgame for many is still private practice ownership. With the dental industry experiencing growth, the buyer pool will continue on. For sellers and the industry alike, the message is clear: solo dentists are not disappearing—they are still actively and confidently buying into private practice dentistry.
*(Trends in Dentists’ Income, Revenue, and Hours Worked, Update based on the ADA Health Policy Institute’s 2025 Survey of Dental Practice and other sources)
Why Practice Sales Fall Apart and How to Avoid It
When planning to sell a practice, one of the most common reasons a transition falls apart, whether with a DSO or an independent buyer, comes down to the organization and accuracy of the information you provide. This can feel overwhelming if you are not familiar with your practice management software reports or if you have taken a hands-off approach with bookkeeping and accounting.
Often, it is simple issues that begin to erode buyer confidence. Examples include not disclosing a staff wage increase, stating you are a PPO-only practice when you actually accept some Medicaid, failing to mention that a piece of equipment needs repair, or having attorney fees on your books from two years ago that were actually related to a personal item. These items may seem small, but each time a buyer has to clarify something or discovers information that was incorrect or incomplete, they gradually lose trust in all the information you have provided. As their trust decreases, their scrutiny increases, which usually results in more concerns being identified.
When planning to sell a practice, one of the most common reasons a transition falls apart, whether with a DSO or an independent buyer, comes down to the organization and accuracy of the information you provide.
Other red flags include large outstanding accounts receivable or significant patient credit balances. While buyers are responsible for performing due diligence, repeated mistakes in disclosures or intentional omissions, whether or not they are intentional, can cause a buyer to walk away from the opportunity entirely.
This happens with DSOs as well. A DSO may give you an initial offer based on your profit and loss statements, only to discover during due diligence that your EBITDA is significantly different from their original calculation. This often results in a much lower valuation than expected. An independent buyer may determine that you perform a high number of specialty procedures that they are unable to replicate, which makes the practice unrealistic for their skill set.
To avoid these issues, it is important to review your software reports carefully to confirm that all information is accurate and complete. It is also helpful to clean out personal expenses from your books before beginning the sales process. And if you plan to hire a broker, remember that a broker does not audit the information you provide. They may ask many questions to clarify details, but they rely entirely on the data you submit. They are not an audit firm and cannot verify whether the information is accurate.
Preparing accurate, organized, and complete information protects the value of your practice, maintains buyer confidence, and dramatically increases the likelihood of a smooth, successful sale.
If you are considering selling your practice in the next three to five years, or less, this is the ideal time to prepare. A brief conversation can help you understand what steps will protect your value, strengthen your position, and make the entire process far less stressful. If you would like to review your practice reports, discuss your goals, or explore your transition options, I invite you to contact Hemmen & Associates to schedule a time to talk. We love helping our clients plan the smoothest and most successful path forward.
What Our Clients Have To Say About Us Matters
“We had the pleasure of working with Hemmen & Associates, selling our dental practice, and we couldn’t be happier with the experience. The H&A Team is highly knowledgeable, and exceptionally well-connected – not just in Iowa but nationwide. They took the time to truly get to know us on a personal level and tailored the sale to meet each need and want. What really stood out was the network of professionals beyond dentistry, including legal, real estate, lenders, financial and accounting experts, which helped make the process smooth and efficient. The team kept us updated at every step, provided constant communication, and even stayed in touch after the sale to ensure everything was going well.
Hemmen & Associates made this an enjoyable experience in every aspect, and we are deeply grateful for their support and guidance. We highly recommend them if you’re considering transitioning your practice. “
– DRS. M&T
