Wow!

Talk about an eventful period in the world of corporate dentistry in Canada.

One day, DCC is selling its shares to GTCR, a private equity firm based out of Chicago. The transaction’s price per share was $11, representing a 33% premium over the previous day’s closing price (albeit down $3 per share compared to the IPO back in 2021).

Not to be outdone, 123Dentist took its turn at making the news. It launched a new, patient-centred marketing campaign, with the first ad themed as “Smiles Across Canada”. It will be interesting to see what direction this ad campaign takes as it continues to evolve. On top of that, 123Dentist announced it was acquiring Ottawa-based MCA Dental Group and its 27 clinics in Ontario and Quebec.

Clearly, both of Canada’s largest corporate dental groups have been busy!

This appears to mark a strategic shift in the Canadian DSO market…and it should really come as no surprise when you consider where DSOs are in the typical life cycle of an industry or business. The graph below lays out what that life cycle looks like.

In the life cycle’s introductory period, only “early adopters” seem interested in dipping their toes into the water. However, if a model is successful, there is a rapid period of growth as those in the “wait and see” phase start diving in. Then, as an industry moves into the “maturity” phase, growth does continue, but at a slower pace.

It is difficult to discern exactly where the DSO model would lie on this graph. Statistics I found indicate that DSOs own approximately 10% to 15% of the dental practices in Canada, that pales in comparison to the 38% to 45% we see out of the United States. This suggests that there remains considerable room for growth in the DSO sector in Canada.

Based on this, it is likely that the DSO model sits somewhere in the range of the life cycle’s later “growth” stage or is just entering “maturity”. This could help explain why both Dentalcorp and 123Dentist are making such dramatic strategic moves. If they wish to increase their profitability, new strategies that reflect where they are in the business life cycle will have to be employed. This will likely include strategic acquisitions of smaller DSOs rather than individual clinics, streamlining operations, and a new, public marketing campaign.

How should dentists in private practice respond?

I would recommend taking a page out of the DSO playbook.

For years, DSOs in Canada remained largely hidden from public view. When practices were acquired, there was no attempt to rebrand them. Unless patients asked directly, they were usually not advised of the change in the practice’s ownership structure.

By launching a public marketing campaign, it appears 123Dentist is prepared to break away from this tradition. Whether we start seeing 123-branded signage at their practices remains to be seen. However, they are at least letting the public know they are out there and that their goal is to Make Canada Smile!

So private practice needs to increase its visibility as well. That starts with building your brand around your vision. Find a vision that speaks to you, your passion as a dentist, and one that resonates with patients. Make your vision obvious in your signage, your website, your social media presence, and even your office.

Take a team approach to developing your brand. Your team is a huge part of your voice to your patients. They need to know your brand so they can reinforce it with your patients. Otherwise, your brand voice could simply get lost in translation.

Dentistry is constantly evolving…as is the world around us. So, dentists need to evolve along with it. Ensuring you have a brand identity will be your first step in adapting to this shifting landscape.