David Murphy on What Buyers Are Really Looking for in a DSO Investment
What separates a DSO that is ready for a successful capital event from one that is not? In this episode of The Dental Economist Show, host Mike Huffaker speaks with David Murphy, managing director at Moelis & Company, about the M&A market, capital strategy, and what dental operators should be building today to maximize their options tomorrow.
David explains the role of an investment bank, when DSO leaders should begin building advisor relationships, and how to evaluate the right banking partner. He breaks down the trade-offs between debt and equity financing, why the dental M&A market is beginning to recover after a challenging period, and how higher—but more predictable—costs of capital are changing deal structures.
The conversation also explores what buyers look for in diligence: durable organic growth, clinician retention, accurate financial reporting, integrated technology, disciplined de novo performance, and high-quality EBITDA. David shares why well-integrated businesses with strong operational performance are positioned to take market share, why specialty platforms continue to command a premium, and how AI could become a major growth and margin opportunity for dental organizations.
What Makes a DSO Investment Ready?
About The Dental Economist Show
Don’t miss insightful conversations with industry experts on the latest trends and top strategies to grow your DSO or dental group. Tune in to The Dental Economist Show each week as we meet at the intersection of profit and purpose.
Listen to the full podcast:
