Episode: What Is My Practice Worth When Selling To An OSO Or DSO In 2026? Show: GrowOrtho Podcast, Host: Luke Infinger, CEO and co-founder, HIP Creative Guest: Brian Christensen, CFA, Chief Development Officer, 7 Pillars Published: Summary: Selling an orthodontic or dental practice to a DSO or OSO usually takes about six months from signing with an M&A advisor to closing, according to Brian Christensen, CFA, Chief Development Officer at 7 Pillars, and 60 to 90 days of that is due diligence after the letter of intent. Buyers price the practice on adjusted EBITDA, which is revenue minus true go-forward operating expenses minus market-rate doctor pay, and multiples start to climb at roughly $1 million of EBITDA. Christensen estimates a one-doctor practice with $2 million of EBITDA an hour outside Atlanta would trade at about 7.5x to 8.5x, while very high EBITDA concentrated in one provider creates key-person risk that lowers the multiple. Earnouts only count if the targets are achievable, and buyers weigh the last three to six months of performance heavily. In 2026 the DSO market is shifting toward large groups buying smaller groups, sponsor-led platform mergers, and IPOs as alternatives to the traditional private equity recapitalization. Topics covered: practice sale timeline, M&A advisor engagement letters and success fees, adjusted EBITDA and add-backs, buyer selection and letters of intent, due diligence, exit multiples, earnouts, key-person risk, DSO consolidation, private equity recapitalizations, dental IPOs, the orthodontic M&A market. Key entities: 7 Pillars, Brian Christensen, Brett Pierce, Christy Ratcliff, Luke Infinger, HIP Creative, GrowOrtho Podcast, US Oral Surgery Management (USOSM), MB2 Dental, Heartland Dental, Foundation Dental Partners, Smile Doctors, myOrthos, Paradigm Oral Health, BlackRock Long Term Private Capital, Warburg Pincus, Thurston Group, SGA Dental Partners, Gen4 Dental Partners, Modis Dental Partners, Tyree & D’Angelo Partners, Park Dental Partners, Blackstone, KKR, Invisalign. About The Author Luke Infinger CEO and co-founder, HIP Creative | Host, GrowOrtho Podcast Luke Infinger leads HIP Creative, a growth partner for orthodontic, dental, oral surgery, and multi-specialty practices, and hosts the GrowOrtho Podcast, where he interviews the advisors, operators, and doctors behind growing orthodontic practices. Profile: [AUTHOR PROFILE URL] Featured Expert Brian Christensen, CFA Chief Development Officer, 7 Pillars Brian Christensen oversees client development at 7 Pillars, an M&A advisory firm that represents healthcare business owners. He previously worked in M&A at US Oral Surgery Management and as Vice President of Business Development at BOND Orthodontic Partners, and he holds an MBA from Southern Methodist University. Profile: https://www.7pillarsadvisory.com/our-practice/meet-our-doctors/brian-christensen/ Selling to a DSO or OSO takes about six months once the process starts, according to Brian Christensen, CFA, Chief Development Officer at 7 Pillars, and many practice owners start the conversation later than they should. Christensen has worked both sides of these deals. He did M&A for US Oral Surgery Management, helped a West Coast orthodontic support organization grow from 3 locations to 50 in about two years, and now represents sellers at 7 Pillars, a healthcare M&A advisory firm that completes 20 to 25 DSO and private equity transactions a year. In this GrowOrtho Podcast episode, Luke Infinger, CEO and co-founder of HIP Creative, asks Christensen to walk through a sale from the first signature to closing. They cover how buyers calculate adjusted EBITDA, which add-backs raise it, what multiples a single-doctor practice can expect, why an earnout can make an $8 million offer look like $10 million, and how the DSO market is moving toward platform mergers and public offerings. Christensen’s main advice for sellers is to know your numbers the way a buyer will calculate them, and to keep growing after you sign with an advisor, because the last three to six months of performance can move your multiple. Key Takeaways A practice sale run by 7 Pillars typically takes about six months from engagement to closing, with 60 to 90 days of due diligence after the letter of intent; the fastest deal Christensen cited closed in five and a half months. Adjusted EBITDA for a practice sale equals revenue, minus true go-forward operating expenses after personal and one-time add-backs, minus market-rate doctor compensation, which most groups set as a percentage of collections. Christensen said EBITDA multiples start to rise at about $1 million of EBITDA, and he estimated a one-doctor practice with $2 million of EBITDA an hour outside Atlanta would trade at roughly 7.5x to 8.5x. Very high EBITDA produced by a single doctor creates key-person risk, and 7 Pillars has advised owners in that position to add an associate or partner because the higher multiple can outweigh the lower profit. An $8 million offer with a $2 million growth bonus is an $8 million offer if the growth target is unrealistic, so sellers should compare cash at closing. Buyers start with trailing 12-month EBITDA but weigh the last 3 to 6 months heavily, and an unexplained dip during the process can cost the seller negotiating power or the buyer altogether. The deal blockers Christensen sees most often are bringing in a financial advisor or CPA too late and taking advice from too many people outside a small core team. When Should A Practice Owner Start Talking To An M&A Advisor About Selling To A DSO? Brian Christensen of 7 Pillars tells practice owners he would rather they start the conversation slightly too early than too late. Waiting too long narrows the pool of dental support organizations (DSOs) and orthodontic support organizations (OSOs) willing to bid, and it lowers the price. He also separates timing from motive. Christensen’s rule is to never sell out of fear and never sell because a friend did. Start with what you are trying to solve for. When owners say the answer is money, the follow-up is what the money is for, and Christensen points out that if money alone were the goal, more orthodontists would be working Fridays and Saturdays. An early conversation does not commit anyone to a sale. 7 Pillars regularly talks with owners who only want to understand current deal structures and what buyers are paying for, and some owners go to market just to test their value. Christensen’s view is that when several buyers independently give the same feedback, such as growing new patients, hiring more treatment coordinators (TCs), expanding the footprint, or closing underperforming locations, the feedback is probably right and worth acting on. How Long Does It Take To Sell A Dental Or Orthodontic Practice To A DSO? According to Brian Christensen of 7 Pillars, a practice sale usually takes about six months from signing the engagement letter to closing when the seller, advisor, and buyer all move quickly. The fastest deal he cited closed in five and a half months. Roughly 60 to 90 days of that window is due diligence after the letter of intent (LOI) is signed. Delays come from ordinary life as often as from deal problems. One 7 Pillars client left for a month-long trip to Japan, and the process paused while he was gone. Christensen describes a push and pull: buyers have momentum and their own pipelines, and a seller who stalls risks losing that momentum. Longer timelines happen. Christensen described a non-dental operating business that engaged 7 Pillars in December 2024, went to market in spring 2025, accepted an LOI in July 2025, and was still expected to close at the end of 2026, close to two years in total. He also described a general dentist (GP) who signed with 7 Pillars in 2024, found a dental support organization (DSO) he liked, and then spent another year fixing staff turnover and growing cash flow and EBITDA before closing with MB2 Dental. Waiting the extra year let him close with the group he had wanted from the start. What Does An M&A Advisor’s Engagement Letter Cover, And What Is A Tail? An engagement letter is the contract a practice owner signs with an M&A advisor before any analysis begins. Brian Christensen of 7 Pillars describes it as a long document that sets out the advisor’s responsibilities, the seller’s responsibilities, and the economic arrangement. At 7 Pillars, the economics are usually a success fee, meaning a percentage of the transaction paid only if the deal closes. The firm typically charges no retainer or upfront fee. Christensen’s reasoning is that when the seller gets paid, the advisor gets paid, and if the process ends without a deal, both sides lose only time. A tail is the clause that protects the advisor if the seller walks away. Under 7 Pillars’ usual terms, Christensen said, a seller who terminates the engagement or decides not to transact cannot pursue a deal with any buyer 7 Pillars talked to on the seller’s behalf for about one year. He noted that other advisors use breakup fees or longer tails, so sellers should compare those terms before signing. How Is Adjusted EBITDA Calculated When You Sell A Dental Practice? EBITDA (earnings before interest, taxes, depreciation, and amortization) is the cash-flow number that dental support organizations (DSOs) and orthodontic support organizations (OSOs) use to price a practice. Brian Christensen’s working formula for a practice sale is revenue, minus the true go-forward operating expenses of the business, minus market-rate compensation for the doctor. The go-forward adjustment is where add-backs come in. Add-backs are expenses on the current books that a buyer will not carry after closing, so they get added back to profit. Christensen splits them into two groups. Personal add-backs include pay for a spouse or children who do not actually work in the practice, a boat, a country club membership, spor