Edit Content
Follow us
Linkedin-in Twitter

Frequently Asked Questions

Phase 1 Equity is a doctor-owned, doctor-led and doctor-governed orthodontic and pediatric dentistry platform. We are different in two important aspects – our distinctive Doctor Equity™ Model, and our doctor-majority board of directors.
Unlike typical DSOs, we partner with our practices to prepare them for a future sale. Doctors retain 100% ownership of their practices while they optimize their EBITDA and capture the future growth of their practice before selling.
Our unique governance model ensures a doctor-majority board of directors and that doctors chair each and every Management Committee – so doctors always remain in control of clinical and business decision-making at both the practice and platform level.
Our team of practicing doctors, healthcare executives and private equity professionals have a combined 150+ years of experience building specialty dental and healthcare companies.
  1. Stage One: Preparation and Optimization (~3 Years)
    • Focus: Expand our network of practices and doctor-owners strategically over the next 2-3 years
    • Ownership: Doctors retain 100% ownership of their practices—no sale occurs during this stage
    • Autonomy: Doctors maintain full control over clinical decisions, brand identity, and practice operations
    • Optimization: We collaborate with doctors to enhance cash flow and EBITDA, with all growth captured by the doctor
    • Collaboration: Members share best practices across the Phase 1 Equity network to improve clinical and non-clinical operations
    • Platform Development: Phase 1 Equity invests heavily in operational, legal and management infrastructure to attract top private equity buyers aligned in value and culture
  2. Stage Two: Post-Company Sale
    • Initial Payout: Upon sale to a private equity buyer, doctors receive ~70% of their practice value, calculated as EBITDA x multiple (typically 12–14 times)
    • Employment Contract: Doctors sign a 5-year employment agreement with the new buyer
    • Equity Rollover: Doctors reinvest ~30% of their practice value into the newly formed DSO, with the potential for this equity to grow 2–3 times over Stage Two
    • Recapitalization: The rolled-over equity typically re-capitalizes at the 5-year mark, providing additional financial gains
    • Flexibility: After the 5-year contract, doctors can continue working or execute an exit strategy
This two-stage process ensures doctors maximize the value of their practice while maintaining autonomy and benefiting from long-term growth.
Why Our Model Stands Out
Our platform was intentionally designed to prioritize doctor ownership. Unlike traditional private equity-backed DSOs, we avoided raising significant external funding, ensuring doctors own nearly 90% of the platform. To support infrastructure development, practices contribute 4% of their monthly collections, providing access to these valuable services:
Private Equity Sale Preparation
  • Practice-Level Optimization: We help practices maximize EBITDA before the sale. For every $10k EBITDA improvement, a 14x multiple could yield a $140k increase in value—imagine the gains with a $30-50k improvement.
  • Platform-Level Readiness: We build the infrastructure, systems, and management team that private equity buyers value, ensuring the best sale outcome.
Knowledge Sharing – We educate practices on private equity expectations, from EBITDA optimization and growth to platform development, showing how small adjustments can lead to significant rewards.
Collaboration – Partner with like-minded orthodontists and pediatric dentists to share best practices, benchmarking data, and insights tailored to your specialty.
Accounting, Benchmarking, and Payroll – We handle monthly bookkeeping, accounting, and consolidated financial reporting. Key Performance Indicators (KPIs) guide better decision-making.
Shared Services and Vendor Negotiation – Save on supplies and services through centralized vendor agreements, reducing operational burdens and increasing profitability.
Marketing and Business Development – Leverage experienced consultants to enhance platform and practice visibility, with strategies for referral marketing and growth.
Support for Operations – Access assistance with HR, billing, collections, IT, and contracting, so you can focus on your practice while we streamline operations.
By focusing on doctor ownership and comprehensive support, we help practices thrive and achieve unparalleled success in the private equity sale process.
Yes. You have the option to exit Phase 1 Equity during the first three years after joining the platform. Because there is no sale of the practice today and autonomy is retained at the practice level, the impact of leaving would be minimal.
During stage 1, no changes occur to your compensation. In stage 2, you would be employed under an employment agreement with Phase 1 Equity. No changes to your employee’s compensation should be expected in stage 2.
The next step would be to have a confidential discussion with a senior member of the team or with one of our doctor board members.  To begin this process, simply fill out the information on our website or email us at info@phase1equity.com.
At the time of a Phase 1 Equity collective sale, the value of your individual practice will be calculated by multiplying your EBITDA by the multiple paid (EBITDA x multiple). The EBITDA that is used in this calculation is based on the prior 12 months of your financials. For that reason, optimization needs to be completely in place for over a year before the sale for you to maximize your value and get your best outcome at the time of sale.
Whether we help you realize EBITDA optimization through increasing collections from more patients, achieving a higher new patient conversion rate, or saving on a myriad of expenses in your practice, you are the one who benefits from an increased cash flow in the short term and a higher valuation at the time of sale. The most important thing to remember is any changes made within your practice take time.
No. While Phase 1 Equity is here to support each of our doctor partners, they retain their autonomy over practice decisions. They are in control.
DuneGlass Capital was founded in 2019 by co-founders Dan Hosler and Ryan Graham, private equity veterans with more than three decades of combined healthcare private equity experience, including multi-practice operations, private equity deal structuring, and healthcare business strategy.
As sons of physicians, Dan and Ryan recognized firsthand the importance of mentoring their doctors in private equity to maximize the intrinsic value of the practices.
As a result, their sole aim with DuneGlass was to create a repeatable process for value creation that would help doctors across medical and dental specialties realize a more lucrative and equitable return on private equity’s investment in their specialty. Please visit the DuneGlass website at https://duneglasscapital.com/
Joining now ensures you maximize your value and take control of your future, rather than waiting and risking limited options:
  1. Timing Is Critical – We’ve seen firsthand that when practices joined late in their specialty’s consolidation wave missed the chance to maximize their value. Private equity opportunities like this are time-sensitive, and waiting could mean missing the train entirely
  2. Rising Costs and Stress – Independent practice owners are facing increased operational costs and stress, making it harder to thrive without additional support
  3. Fewer Buyers for Traditional Sales – Selling to a new doctor is becoming less viable. Many young doctors lack the desire or financial ability to purchase and manage practices, especially with significant student loan debt. Banks are also tightening lending, limiting the potential for competitive offers
  4. A Unique Alternative to DSOs – Phase 1 Equity offers a collaborative, doctor-owned platform as an alternative to traditional DSO sales. By acting now, you can participate in the orthodontic/pediatric dentistry consolidation wave and plan your future with a community of like-minded professionals

Industry questions

DSOs (Dental Services Organizations) are Managed Services Organizations (MSOs) serving the dental industry. They handle nonclinical functions for dentists, allowing the doctors to focus on patient care including accounting, payroll, HR, compliance, IT, and marketing, among other tasks.
The dental industry’s steady revenue growth, high profitability, market fragmentation, and resilience to economic fluctuations make it attractive for private equity investments.
Traditional DSO Model:
  • Values practices at 5-7x EBITDA
  • Buys approximately 70% of the practice
  • Doctors move to a salary and the DSO retains remaining profit
  • DSOs may alter day-to-day operations, impacting autonomy
  • DSOs sell the platform for a higher multiple after optimization and growth, with vast majority of profits going to DSO investors, not the doctors
Being part of Phase 1 Equity’s unique doctor-owned and governed model can better insulate you from market volatility and uncertainty, including:
  • Increased feelings of isolation, burnout, and stress in running your practice
  • Ever increasing demands on your time to manage the practice vs. treating patients
  • Increased competition
  • Rising costs of doing business
  • Labor/talent shortages
  • Loss of referring practices as they sell to DSOs
  • Fewer potential doctor buyers coming out of school interested in buying a practice
  • Economics factors including recessions and pandemics
  • A changing future – the next 10 years won’t be the same as the last 10 years