Episode summary
How Private Equity Is Currently Reshaping Dentistry
The Dentist Money Show
· · Hosts: Matt · Guests: Mike Baird
Summary
Private equity and DSO activity in dentistry has cooled sharply from the 2021-2022 peak. Mike Baird said recap deals fell from 16 in 2022 to 4 in 2025, while average multiples slipped from 13.6x to 10.3x. He argued that higher interest rates, inflation, labor pressure, and weaker practice profitability have made the model harder to underwrite, and that 24 groups launched processes in the last two years without closing a deal.
Baird said the biggest operational drag has been rising labor costs, especially hygiene, along with supply inflation and flat insurance reimbursements. He estimated average hygiene pay is up 15% to 30% in many markets and said these pressures can cut a strong practice from 20% margins to 15% or even 12%. That means both entry and exit math have worsened for buyers, while many of the practices still getting done are the strongest, highest-performing groups.
He also argued the market has moved from hype to a more normal equilibrium. Dentists are more skeptical, more informed, and less likely to accept the story that easy money is still available. Baird said dentists who missed the wave are often better off, because many headline exits came with clawbacks, long earnouts, and non-competes. He closed by saying dentistry remains a strong field, but only for owners who invest, adapt, and run their practices like real businesses.
Key takeaways
- Baird said recap activity dropped from 16 deals in 2022 to 4 in 2025, while average multiples fell from 13.6x to 10.3x.
- He said 24 groups launched sale processes in 2024-2025 but were unable to close, showing how much harder capital is to get.
- Baird said rising hygiene wages, labor shortages, and flat insurance revenue have compressed margins by roughly 5 percentage points in many practices.
- He argued the strongest DSO candidates now typically have more than $1.5 million in collections, 15% to 20% real profit, and room to grow.
- Baird said dentists who missed the private equity wave are often better off because many touted exits came with clawbacks, earnouts, and non-competes.
Notable quotes
“2022, uh, we had 16 deals, 16 recaps. The average multiple in 2022 was a 13.6x multiple across those 16 deals”
“in 2025, at least when this data was run, which was October, there was one or two deals that snuck in after, there were four deals done at a 10.3 multiple”
“the biggest fact in all that is the hygiene market. So, hygienists uh the reports are that somewhere around 10 or 11% of hygienists retired permanently in COVID”
“I don't think this is going away, though. I I think we're still seeing and you know some of the macro trends on this. We've never had more capital sitting on the sidelines with private equity firms”
How the episode opens
Consult an adviser or conduct your own due diligence when making financial decisions. General principles discussed during this program do not constitute personal advice. This program is furnished by Dennis Advisers, a registered investment adviser.
Welcome to the Dennis Money Show, where we help Dennis make smart financial decisions. I am Matt and excited to have what maybe is becoming a regular on the show. I don't know.
Uh Mike Baird, founder and CEO of Accelerate Dentl. Mike, how are you?
I'm doing great. This is like the the SNL hosting thing. When I get five, do I get a special vest? — Yeah, exactly. I think this is three. — Yeah, I think this is three. So, we'll keep track. I'm excited.
I know. This is awesome. You keep you keep slipping me 20s and like you'll keep coming on the show. It's weird how that works. So, um, uh, so, no, honestly, so excited to have you on because this is something we haven't,
Uh, talked about for a bit. It's honestly kind of felt like all quiet on the dental front, Mike. Maybe it just kind of feels like things on the DSO in the DSO space, private equity, maybe this is what we're feeling.
And so, I wanted to bring you on because it it just feels like things have gone quiet and we're not getting a ton of questions on this right now. We doesn't feel like recaps are happening. So, we just wanted to bring you on and go through what's what's the latest?
What's the state of the union on the DSO space from your perspective? And you're you're just so plugged into this. So, maybe let's just start there high level.
What's what's the state of the union right now?
From the episode’s captions: roughly the first two minutes, lightly cleaned. Keep watching on YouTube →
Topics
- private equity reshaping dentistry
- dental market dynamics
- dso influence
- practice valuations
- ownership decisions
Companies and tickers mentioned
- Accelerate Dental
Watch the episode
Watch “How Private Equity Is Currently Reshaping Dentistry” on YouTube
Summary, takeaways and quote selection by Octagon. Quotes are short excerpts; the full conversation is in the episode.
More from The Dentist Money Show
-
What Should You Do When You're Nervous About the Stock Market? -
Two Cents 11/7 - What's Driving Economic Growth?; Elections Break The Market?; Tax Bracket Changes -
Is a 3-Day Workweek Possible for Dentists? -
Two Cents 10/31 - AI Bubble In China; How Should You Use Your HSA?; 2026 Halloween Spending Trends -
The Biggest Mistakes Dentists Make With Social Security -
Two Cents 10/24 - France & Japan's Economy; Do Stocks Ever Go Down?; Rising Property Taxes
The Dentist Money Show, this episode and its artwork belong to Dentist Advisors - Financial Planning and Investment Management. Octagon is not affiliated with the show; this page is an independent summary.
