69% of DSOs Plan to Boost Acquisitions in 2026, But Supply Is Tightening
TUSK Practice Sales’ Q2 2026 Dental Market Report — based on a survey of DSO leaders and their PE sponsors — finds that 69% of DSOs expect to increase acquisition activity this year, but a shrinking supply of quality independent practices may constrain that ambition. Additional findings: 78% of DSOs anticipate recapitalizations within 12–36 months, and private placement memorandum exit counts rose 57.1% the prior year. The compression between high buyer demand and limited deal inventory is expected to sustain practice valuations even as DSOs aggressively pursue expansion. The report frames 2026 as a pivotal year for dental M&A as PE sponsor timelines and practice supply dynamics converge.
For DSO executives and their PE sponsors, this report confirms 2026 is shaping up as a highly competitive acquisition environment with limited supply. Sellers are in a strong position; buyers need sharper deal criteria and faster execution. Groups approaching recapitalization should pay close attention to how supply constraints are affecting valuation multiples.
While we aim to share useful and relevant resources, we do not guarantee the accuracy of content on this site or any external links. Views and opinions expressed in referenced content do not necessarily reflect those of Healthcare Growth Strategies.