Dental “Partners”: How Did He Calculate a Growth Formula That Convinced Partner Dentists?

In 2023, private capital shifted from a frenzied influx into the dental industry to an almost overnight withdrawal, creating unprecedented turbulence. More than 250 private equity-backed DSOs expanded rapidly during 2021-2022, only to come to an abrupt halt at the end of 2022, with valuations plummeting, interest rates rising, and the industry entering a deep winter. It was at this moment that Mike Baird and co-founder Tom Sorber decided to launch Accelerate Dental, attempting to break the traditional model with an entirely new approach.

They interviewed over a hundred dentists and found that the biggest concern for most practitioners was not the amount of capital, but the explicit exit timeline stipulated in contracts. Traditional DSOs often required dentists to undergo restructuring and cash out after five to seven years, which deterred many practitioners. As a result, Accelerate adopted a "minority shareholder + perpetual partnership" structure, allowing dentists to hold majority equity while providing back-office services for a 5% support fee, seeking to strike a balance between economies of scale and long-term returns.

Three years of experimentation show that partner clinics have seen average revenue double, equity value increase 2.5 times, and dentist income grow by approximately 50%. The model draws on the partnership structure of law firms, abandons fixed exit deadlines, and offers flexible equity exchange and buyback pathways. Moving forward, Accelerate will continue to expand in western states including Arizona, Colorado, and Washington, with the goal of promoting face-to-face interaction and technology sharing among dentists through geographic concentration...

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