Lane Theriault on Growing DSOs in Multiple Markets
On this episode of The Dental Economist Show, host CRO of Planet DDS Mike Huffaker sits down with Lane Theriault, CEO and founder of Independence Dental Services, which has grown to over fifty affiliated practices in four years. Join them as they discuss Lane’s journey from finance to dentistry, his success in building DSOs in both Canada and the U.S., and his unique approach to practice partnerships.
Learn more about:
- The launch of Independence Dental Services
- Navigating the challenges of COVID-19
- The differences between Canadian and U.S. dental markets
- Current M&A trends in dentistry
- The future of dental technology and practice innovation
About the Author
Lane Theriault is the CEO and founder of Independence Dental Services, which has grown to over fifty affiliated practices since its inception in 2020. Prior to launching Independence, Lane was a founder and director of 123 Dentist, which grew from 13 clinics in 2017 to become the second-largest DSO in Canada. His background in finance at Citigroup, where he worked in M&A, provided him with valuable insights into industry consolidation strategies that he has successfully applied to the dental sector.
Episode Highlights
In this episode, CEO Lane Theriault shares insights on growing DSOs in multiple markets and more. Here are some highlights from the show:
From Banking to Dental: A Strategic Decision
Theriault describes his methodical approach to choosing dentistry as his focus industry. While working at Citigroup, he analyzed various industries for consolidation potential, creating a matrix of desired characteristics. Healthcare sectors performed well in his analysis, with dental emerging as the clear standout, leading to his entry into the dental industry.
Differentiation Through Doctor Partnership
Theriault explains Independence’s unique approach to DSO operations, focusing on partnering with successful doctors while maintaining their autonomy. Unlike traditional DSOs that impose standardized systems, Independence allows doctors to retain their successful practices while providing optional support services. This strategy includes maintaining doctor ownership at the practice level, typically ranging from 20% to 50%.
Post-COVID M&A Landscape
The discussion covers how the M&A landscape has evolved post-COVID, with Theriault noting a shift from the aggressive “land grab” mentality of 2021 to 2022, to a more measured approach. He observes that while deal activity has slowed, this has led to more meaningful conversations and better-quality connections with potential partners, allowing for more thorough due diligence.
Strategic Market Selection
Lane shares his perspective on market selection, describing his preference for “urban halo” locations. These suburban areas offer the benefits of access to provider pools from nearby metropolitan areas while avoiding the intense competition and high costs of urban centers, creating an optimal balance for practice success.
About The Dental Economist Show
Don’t miss out on episodes with special guests to discuss top strategies to grow your dental business. Tune in to the The Dental Economist Show weekly to learn how to optimize your DSO’s value and stay ahead in a rapidly evolving industry.
