By Wade Coleman, JD*

Many doctors approaching retirement are convinced that young doctors can’t afford to buy their practice due to rising interest rates, record student loan debt, and their desire for work/life balance. Actually – it’s just the opposite! Young doctors can’t afford to NOT buy a practice!

During the 10 years ending in 2022, private equity funded corporate groups bought dental practices at a blistering pace. Since then, private equity DSO acquisitions have declined by more than 30%. Rising interest rates, shortages of hygienists, and staffing issues at the front desk have all squeezed profi t margins for DSOs. These groups are now proceeding with utmost caution, buying fewer practices at lower prices and requiring more rigorous terms for the sellers.