The Deal | Bite-Sized Solutions: DSOs Shift Gears Amid Exit Challenges
Originally published by The Deal on July 28, 2025
The U.S. dental sector remains an attractive target for investment, supported by stable, recurring patient volumes and strong secular tailwinds. However, in light of a broad decline in EBITDA multiples, many dental service organization (DSO) sponsors are holding onto assets longer, often without a clear path to exit. While platform transactions have slowed compared to prior years, entrants still early in their investment hold periods continue to capitalize on the significant consolidation opportunities presented by add-on acquisitions.
As Moyo Mamora, Director and head of North America dental coverage, recently noted in a conversation with The Deal, DSO-to-DSO acquisitions remain largely overlooked, despite their potential to unlock meaningful synergies. Beyond this benefit, such peer-to-peer transactions could also act as a catalyst for broader investment in the sector and potentially reignite M&A activity across the dental sector.
“[Platforms are] shying away from [DSO-to-DSO M&A],” Mamora said. “I actually think that it’s a missed opportunity.”
Read the full piece (Gated)
Summary
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DSOs are capitalizing on a fragmented dental market and compressed EBITDA multiples to drive growth yet have largely overlooked DSO-to-DSO combinations. Lincoln's Moyo Mamora discusses sector trends with The Deal.
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Contributors
I listen to my clients to understand their needs, gain insight on opportunities they see within their industry, connect with what inspires them about their business and then collaboratively work to articulate the value of their business to the market in order to drive a successful outcome.
Moyo Mamora
Director
Chicago
