
Sebaceous cysts are quite common in dogs, and in my breed, and some others like GSD, OES etc.
http://www.petplace.com/dogs/sebaceous-cysts-in-dogs/page1.aspx and
http://www.fetchdog.com/learn-connect/dog-resource-library/health/oncology/Cysts/D/300600/P/1:5:55:601:6106/I/AR000010539I have luckily only had one with them, and like you she never had any until she was over 5 years old.
Unless they are very large and cause the dog pain or are in such a position that they damage them then usually you simply hope they come to a head, and clean them if they are discharging.
My husband has just had one removed from his jaw after meaning to have it attended to for over three years.
These cysts are in a way like a large white head or spot. They most often appear on the trunk and most likely a damaged follicle does not empty and gets congested, the body then forms a capsule (the cyst). If they burst under the skin they will cause an inflammatory reaction.
As with my husband they can be removed using the Minimal excision technique
http://www.aafp.org/afp/2002/0401/p1409.html under a local anaesthetic, where the cyst is opened up, contents evacuated, and the lining pulled out and the wound either glued or a stitch or few put in. Most vets are more familiar with the more invasive method of cutting them out under GA and often shaving large areas of the coat which can take ages to regrow, not good if your showing the dog.
What I do nowadays is weekly go over every inch of her, and if I find any zit size one I get the sebum out (like grainy toothpaste, clean with Surgical spirit and keep checking. When found tiny and near the surface of the skin they resolve. Unfortunately those in deeper tissues sit there and often won't come to a head (so they can drain and heal) for a long time if ever. Here is a video clip of one that has come to a head beign emptied (but not while yrou eating:
http://www.youtube.com/watch?v=hsmV2I3ZEcw and
http://www.youtube.com/watch?NR=1&feature=endscreen&v=AsSKDYG6hD0 )