Although some dental leaders are wary of how the economy will impact the dental industry, many DSO executives are still holding onto a positive outlook.
Many DSO leaders have told Becker’s this year that they expect the DSO field to rebound after a more sluggish 2024. Several organizations have recently gained new investments to help fuel their expansion efforts as well.
Dylan Bates, the CEO of Phoenix-based Salt Dental Partners, recently spoke with Becker’s to share his thoughts on the economy and his predictions for more favorable outcomes.
Note: This response was lightly edited for clarity and length.
Q: What is your outlook on the dental M&A field this year?
Dylan Bates: I’m hearing some good things. We like everyone to be successful. There are some platforms that are private equity-backed that are going to go through transactions. We’ve heard some good momentum there, so there are a number of other DSOs that are active, which I like to see. I think that creates good, competitive tension. I think with the cost of capital and the interest rate environment over the last couple of years, there were a number of DSOs that didn’t have great access to capital. I’ve heard that it is starting to improve, which is a good sign for the overall industry. We’re pulling for everyone to be successful, and we’re confident that we’re going to continue to be very active and successful in our own right, but I do think that the sentiment has changed more positively.
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