Patterson Dental: What If…?

According to Reuters, Patterson Dental is being taken private in a deal worth $4.1bn. The article cites a major struggle for Patterson Dental:

“Analysts have highlighted easing demand for dental products and surgeries as inflation-weary customers prioritize the purchase of essential products.”

However, if you ask anyone in the industry, they would all disagree that this is the primary reason for Patterson’s decline. Many factors contributed to the downturn of what was once the “Nordstrom” of dental supplies—ranging from leadership changes to adopting new norms, to missing the boat on DSO growth. Yet I would like to focus on what could be exciting in the future.

Let’s consider how Patterson can turn things around. It will require patience, risk-taking, and a clear focus. It may take a few years, but if Patterson is truly dedicated, they could return to being a dominant force, much like they once were. From an outsider’s perspective, here are some possible steps:

1. Build an Open API Service for 3rd Parties
   Turn toward the industry, face forward, and acknowledge the permanence of procurement platforms. Work with them. Open APIs can actually drive sales and bring more business. This also frees up sales reps to bring real value to practices instead of just taking orders. Build the most robust infrastructure on top of an already strong distribution network—think “Shopify on top of logistics.” Anyone with a new idea or product can open an account and start selling through Patterson, all automated and free.
2. Innovate
   What has Patterson done innovatively in the last 10–12 years? The same specials and promotions, the same website ordering, the same app, the same tag system, and next-day delivery. These are solid offerings (except maybe the repetitive specials and promotions), but Patterson has so much more potential at its size and with its brand power to try several new things: some text
   • Try same-day delivery.
   • Experiment with new incentive ideas.
   • Make prices transparent.
   • Elevate the sales force to become product experts and influencers.
   • Invest in new approaches to inventory control.
   • Spend on R&D and M&A to expand capabilities and product lines.
3. Earn the Trust of Private Practices
   Regaining trust requires a cultural shift from top to bottom. Fortunately, many at the branch and sales levels are already focused on earning trust. Top management should spend time in the field—at least a month—with branch managers and sales reps, especially visiting those who no longer purchase from Patterson, and learn from them. For the foreseeable future, forget about the DSO market; that ship has sailed. Return to what originally made Patterson successful: private practitioners who relied on them every day.
4. Double Down on Earned Media
   To build trust, double down on social channels with genuine and unique content. Essentially, become a production studio. Tell the story. As of December 2024, Patterson’s YouTube channel has 883 subscribers, and its last video has 62 views—clearly, they don’t have a strong social brand. This can and should change.

5. Take More Risks
   In the world of AI, data is currency. Patterson sits on a treasure trove of data—from Eaglesoft, RevenueWell, ordering information, and more. If Patterson wants to become a key player in the next 10 years, the most promising (and riskiest) bet would be to double down on data, develop internal technology, and build AI agents. This may require near-term self-disruption—sacrificing some revenue streams to reinvent itself with new AI products, either stand-alone or integrated into Eaglesoft or the ordering system. It’s bold, but it might be the only way to become the #1 contender within five to seven years.

Patterson Dental is definitely at a crossroads. They have the advantage of brick-and-mortar presence, logistics, and a capable sales force. It all comes down to a clear vision and execution. These five steps are difficult, and only a few companies in the past have managed to pull off such transformations. With the move to going private, Patterson is halfway there. Even implementing just one of these ideas would be a step forward. Ultimately, success comes down to leadership. I wish Patterson the best, and everyone in the industry wants them to succeed.