The Extraction Ep 17: Dental Practice Valuations and DSO Deals Explained with Justin Klingshirn скачать в хорошем качестве

The Extraction Ep 17: Dental Practice Valuations and DSO Deals Explained with Justin Klingshirn

Thinking about selling your dental practice? Here’s how DSO and private equity deals really work. Justin Klingshirn, Partner and Managing Director at McLerran and Associates, joins The Extraction to explain the realities of dental practice sales, valuations, and private equity partnerships. Justin shares his background as a top producer at the largest dental lender and how he now advises doctors on exits through competitive DSO bidding processes. The episode breaks down how private equity funds are structured, why leverage drives returns, and how the DSO landscape has evolved into mostly “invisible DSOs.” Kyle, Colin, and Justin discuss timing your sale, common pitfalls of waiting too long, why growth earn outs matter, and how owners should think about selling as a partnership rather than a transaction. This is a must-listen for any owner preparing for a transition or trying to maximize practice value before a sale. Guest Justin Klingshirn is a Partner and Managing Director at McLerran and Associates and a leader behind DentalTransitions.com. He has spent roughly 15 years in dental banking and sell side advisory, helping doctors navigate private practice sales and DSO partnerships. Show Notes Key Takeaways Dentistry attracts investors due to recurring demand and recession resistance. Practice size and cash flow heavily impact valuation. Private equity uses leverage to amplify returns. DSOs must grow practices, not just acquire them. Selling is better viewed as a partnership, not a one-time exit. Waiting too long to sell often reduces optionality. Growth based earn ups can protect seller upside. Playbooks and Frameworks Private Equity Structure Raise capital. Leverage with bank debt. Acquire practices. Grow and exit to larger investors. DSO Evaluation Criteria Acquisition growth. Same store organic growth. Sale Timing Framework Avoid selling at peak or on decline. Sell while growth runway remains. Seller Mindset Shift Seller. Partner. Investor. Metrics and Examples Practices above $1.2M revenue attract more competitive buyers. Typical DSO work back ranges from 3 to 5 years. Growth earn ups often measured over 12 months post affiliation. McLerran business split roughly 50% private sales, 50% DSO deals.