Kyle Welch on Private Equity, Valuations, and the DSO Deal Market
Why has the DSO deal market stalled even as demand for dental care remains strong?
In this episode of The Dental Economist Show, host CRO Mike Huffaker of Planet DDS speaks with Kyle Welch, associate professor of accountancy at the George Washington University School of Business, about the capital-market forces shaping private equity, dental support organization (DSO) valuations, and the path to liquidity for dental entrepreneurs.
Welch explains his central thesis: The current slowdown is not simply an operator-performance issue or a reflection of what is happening in the dental chair. It begins higher up the chain with how private equity is valued, how institutional investors allocate capital, and how rising rates have changed the economics behind acquisitions and exits.
Drawing on his experience at the Stanford University endowment and his research into private equity reporting, Welch explores why private-market valuations can appear smoother than public markets, why secondary-market discounts matter, and why the capital that once fueled DSO consolidation has become more constrained.
The conversation also examines what comes next. Welch and Huffaker discuss the pressure created by extended hold periods, the importance of retaining doctor partners, refinancing and debt restructuring, and why combining platforms and pursuing public-market liquidity may offer a more durable path forward for some dental organizations.
Why the DSO Deal Market Froze
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.
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