December 14, 2020

What the COVID-19 Vaccine Means for Dentists

Dentists all over the U.S. have been surprised to learn they don’t qualify as “health care workers” under the distribution program from the Centers for Disease Control and Prevention (CDC) that will dictate who receives the first round of COVID-19 vaccinations as part of the phased-in approach. Here are the facts you need to follow for the high-risk field of dentistry.

A lookback

During initial shutdowns in the spring, most dentistry offices were forced to shutter their doors for elective procedures with the exception of emergency patients only. Dentistry offices are now being forced to work with their state governor’s offices to be included in the first phase of distribution of the COVID-19 vaccine rather than wait with the rest of the general population to be vaccinated.

Definition

The CDC is prioritizing health care workers, first responders and residents of long-term health care facilities for the first round of vaccines; however, while the dentists and hygienists met the definition of “health care worker” as defined by the CDC, they are not included in the revised distribution plan.

Risk potential

Dentists and hygienists have been wearing more personal protective equipment now more than in pre-COVID-19 times since patients cannot wear masks when working in their mouths. By nature of the procedures of average health care professions, dentists and hygienists are closer than six inches away from patients rather than the recommended six feet, creating more potentially contaminated aerosols.

What’s next?

Stay on top of Professional Transition Strategies’s blog for more ways to navigate the COVID-19 pandemic.

December 7, 2020

What Is the Value of Your Dental Practice?

In an article for DentistryIQ, Professional Transition Strategies Founder and President Kyle Francis says “it’s surprising that many dentists don’t even know the value of their practices.” As your most valuable asset, your dental practice is worthy of the time and investment to seek an appraisal. Here’s what to consider.

Keep your options open

“Retirement and career planning are the two main reasons dentists need to know the value of their practices,” Francis says. This gives practice owners the opportunity to leverage the values they’ve created to get a bigger payday with enough time to work with current or future dental partners to make necessary improvements over the course of time. In the long term, they can build value in a number of other ways, including an equity relationship with a dental service organization (DSO), which can take up to seven years.

Factors affecting practice value

An appraisal is really the only way to assess the true value of your dental practice since they are performed on a case-by-case basis. Practice type, location, practice visibility within the community, regional growth, standalone building versus retail center and even signage all contribute to the overall value of your dental practice. Other factors include revenue trends and forecasts, the number of active patients, patient attrition and retention rates, and new patients in the last month and year, as well as value of the dental equipment and its resale rate.

Assessment and documentation

Getting a dental practice appraisal is no small task on the part of the owner but well worth it in the end. It will require three years of profit-and-loss statements and tax returns, current balance sheet, production broken down by provider and procedure type, active patient roster and list of employees (with wage or salary information), new patients during the past 12 months, accounts receivable aging report, copy of lease (if applicable), dentist biography, photo documentation of office and equipment, office hours, and insurance plans accepted. “The sooner you know how much your practice is worth, the earlier you can start enhancing its value,” Francis says.

What’s next?

Contact the experts at Professional Transition Strategies to start the process of appraising your dental practice, whether you plan to sell, retire or practice for 20 more years.

November 30, 2020

5 Reasons to Use a Broker to Sell Your Dental Practice to a DSO

With an estimated 600 dental service organizations (DSOs) across the country, the number of possible offers for your dental practice can seem exhilarating. However, not all DSOs are created equal, and more importantly, neither are all dental practice transitions. Here’s why to use a broker to sell your dental practice to a DSO rather than trying to navigate the transition on your own.

Experience

Brokers will have personal experience with the DSOs. It’s easy for a broker to predict which way the transaction is heading and negotiate accordingly. This is all to say you should use a broker that has experience with dental practices, specifically one that knows and has experience with the different groups.

Knowledge

Brokers will have inside knowledge of the groups that actually practice clinical autonomy. When representing yourself, it can be hard to get to the bottom of each interested party while also negotiating the terms and running a successful practice at the same time.

Representation

By having someone act as your fiduciary, you can feel confident your best interests are being represented rather than just the interests of the group. The broker shouldn’t be compensated by any group. While being your advocate in the transaction, the broker shouldn’t have any other skin in the game.

Demand

A broker has the ability (and obligation!) to bring your opportunity to several groups that share your values. By creating more demand, you tend to have better negotiating power so that you can expect to receive higher offers and betters terms by the end of the transaction.

Bottom line

Houses are commodities; dental practices are not. Therefore, while you can sell your own house, you need an intermediary to sell your dental practice. Your time is better spent focusing on the well-being of your practice and its employees and patients before hanging up your proverbial hat.

What’s next?

Contact the experts at Professional Transition Strategies for help selling your dental practice to a DSO.

November 23, 2020

PTS Holiday Cocktail Guide

2020 has been a year, to put it mildly. It’s almost time to kick this year to the curb as we usher in the holiday seasons. Now more than ever, it’s time to toast with a drink or two. But, of course, because we’re Professional Transition Services (PTS), our cocktail guide includes dental-themed libations. Cheers!

Gobble Gimlet

Ingredients:

1/2 oz. vodka or Hendricks Gin
1 oz. St. Germain liqueur
1 oz. lime juice
2” piece of cucumber, plus a thinly sliced cucumber round for garnish

Instructions:

Muddle cucumber in a cocktail shaker.
Fill shaker with ice.
Pour in the gin, St. Germain, and lime juice.
Securely fasten the lid, and shake like crazy for about 30 seconds.
Strain the cocktail into a martini glass, and garnish with a slice of cucumber.

Pearly White Margarita

Ingredients:

18 oz. full-fat coconut milk (in can)
6 oz. coconut water
6 oz. Grand Marnier
9 oz. silver tequila
1/2 c. lime juice
3 tbsp. agave syrup
Fresh or frozen cranberries, lime slices, and rosemary sprigs for garnish

Instructions:

Add coconut milk, coconut water, Grand Marnier, silver tequila, lime juice, and agave syrup to a large pitcher.
Stir everything together using a whisk until coconut milk no longer separates.
Serve over ice.
Garnish with fresh cranberries, lime slices, and rosemary sprig.

Dirty Shirley Temporalis

Ingredients:

2.5 oz. top-shelf vodka, such as Tito’s
1 oz. fresh lime juice
0.25 oz. grenadine syrup
3 oz. ginger beer
Lime, maraschino cherries, or brandy-soaked cherries for garnish

Instructions:

Place all ingredients (except ginger beer) into a cocktail shaker, and add large ice.
Shake cocktail shaker vigorously.
Add ginger beer, and roll the cocktail shaker once.
Taste for balance, adding more lime if you prefer.
Strain over fresh ice.
Garnish with maraschino cherries or brandy-soaked cherries for a more adult taste.

Man(dibble)hattan

Ingredients:

2 dashes angostura bitters
1 oz. sweet vermouth
2.5 oz. bourbon, such as Buffalo Trace
1 maraschino cherry for garnish

Instructions:

Fill a short glass 2/3 full with ice.
Add bitters, vermouth, and bourbon.
Add cherry, and crush it against the side of the glass with a spoon.
Stir.

Dental Crown Cocktail

Ingredients:

1 oz. Crown Royal Peach
1 1/2 oz. peach schnapps
3 oz. cream soda
Ice for shaking and the drink

Instructions:

Add ice to your cocktail shaker to half full.
Pour in the peach whiskey.
Add the peach schnapps.
Seal and shake the cocktail shaker vigorously for at least 30 seconds until very cold.
Put ice in your glass.
Strain the shaken ingredients into your glass.
Fill to the top with cream soda as desired.

November 16, 2020

A Breakdown of the 2020 Dental Practice Salary Survey

Although 2020 wasn’t a “normal” year by any stretch of the imagination, it’s still important to reflect and benchmark the dental profession in order to learn from the past and move forward. This year’s salary survey by DentalPost in partnership with RDH Magazine features results from more than 8,800 dental professionals about how they feel about compensation, benefits, work-life balance, and the future of modern dentistry. Here’s what you need to know.

Demographics

The more than 8,800 dental professionals who answered the survey included dentists, dental hygienists, dental assistants and front office staff/office managers. Conducted between June and September 2019, the study consisted of 30 questions that ranged from compensation to how employees felt about their roles in the dental community and the changes that have occurred in the industry.

Compensation

The survey asked respondents how satisfied they are with their overall pay. The results conclude 52% of dentists are satisfied with their overall pay, 44% of dental hygienists are satisfied with their overall pay and 31% of front-office employees are satisfied with their overall pay. The survey also covered employee benefits in more detail.

Generational impact

As the incoming generation of dental practice workers moves toward maintaining a healthy work-life balance, the survey notes different strategies and actionable approaches to hire and retain Boomers, Generation Xers, Millennials and Gen Zers. The survey takes it a step further to explain the role of gender and children under 18 in the household. There’s also a correlation among respondents regarding the rise of dental temping before committing to a dental office or job change.

Hours per week worked

The survey asked respondents if they were happy with their current weekly schedule, if they felt overworked and preferred to work fewer hours, or whether they would work more hours. 43% of dentists feel overworked and would prefer to work fewer hours, while only 6% would prefer to work more hours. 24% of dental hygienists feel overworked and would prefer to work fewer hours, with only 8% of respondents would prefer to work more hours. 60% of front-office employees are happy with their current weekly schedule, but 26% feel overworked and would prefer to work fewer hours.

Job change likelihood

The survey asked respondents if they were open to a job change within a year, trending toward more dental practice transitions. The results conclude 38% of dentists are open to a job change within a year, 43% of dental hygienists are open to a job change within a year, and 57% of front-office employees are open to a job change within a year. The survey also covered private practices versus dental service organizations in more detail.

What’s next?

Contact the experts at Professional Transition Strategies to find out how to increase job satisfaction at your dental practice or how to prepare for a dental practice transition.

November 9, 2020

What You Need to Know about the ADA House of Delegates 2021 Budget

The American Dental Association’s (ADA) House of Delegates approved its 2021 budget during a virtual meeting on Oct. 19. According to a news release, “The budget will bring anticipated revenues of $128,840,000 against $134,803,000 in expenses, generating a net loss of $5,963,000 before reserves.” Here’s how this breaks down and what it all means for your dental practice.

Increased dues

To keep up with inflation and help offset a projected 4.4% deficit the ADA is facing as a result of COVID-19, dues have increased $8. Resolution 88 sets dues for next year at $573, plus the implementation it takes to streamline dues that were adopted by the 2019 House of Delegates. This eliminates the discount for active life membership and shortens the discount period for recent dental school graduates.

Pandemic response

While ADA Treasurer Ted Sherwin, D.D.S., said he is optimistic about the ADA’s future, he noted in his report to the delegates the 2021 budget will “strategically use reserves” to retain critical resources to continue to respond to the needs of member dentists during the COVID-19 pandemic. Dr. Sherwin added the unpredictable nature of the pandemic has made “planning for a budget especially difficult.”

Future investments

Dr. Sherwin noted reserves “have enabled us to endure the hardships of the current crisis while making a strategic investment for the future despite our short-term troubles.” This includes creating the ADA Science and Research Institute, which combines the ADA Science Institute in Chicago with the innovation and technology research group in Gaithersburg, Maryland, “to enhance the ADA’s ability to produce basic and translational science for the benefit of dentists and their patients,” according to the news release. The pandemic has also highlighted an increased need for a digital transformation to find new ways for members to engage with the ADA.

Closing statements

“The economic fallout of COVID-19 has created a need for fiscal discipline and focus,” said Dr. Klemmedson, who was confirmed as ADA president earlier in the day. “Fortunately, ADA foresight has allowed for reserves accumulation that will allow us to weather much of the effects of this pandemic. However, investment in assuring our future is more important than ever. I am confident that the Association will continue to maintain financial sustainability as we remain committed to the ADA’s mission to serve the profession and the public.”

What’s next?

Contact the experts at Professional Transition Strategies to learn more about how to plan for 2021 and if a dental practice transition is in your future.

November 2, 2020

PTS Founder and President Kyle Francis on “having a purpose”

In a recent interview with Authority Magazine, Professional Transition Strategies (PTS) Founder and President Kyle Francis spoke on having a purpose beyond just the course of your business. Francis details how working toward something more meaningful can encourage creative thinking, problem-solving and will make you come up with flexible solutions that will allow you to bounce back. Here are the key takeaways.

Resilience

“Resilience is one characteristic that many successful leaders share in common, and in many cases it is the most important trait necessary to survive and thrive in today’s complex market,” the interview states. As a fledgling right out of college, one key obstacle Francis had to overcome was getting his clients to take him seriously. However, he persevered and expanded his company into what it is today with more than 100 practices for sale across the country and an average practice size of $1 million in collections.

Lessons learned

Any business owner knows that branching out on your own comes with its own set of challenges. For Francis, that meant he “needed to learn how to fire people (specifically partners), to take responsibility for my actions, to be a better leader and how to grind” after taking the advice of “making the jump” and “not to have a backup plan” to heart.

Personalization

Francis attributes the success of his company to the options provided to clients. More often than not, hiring a dental practice broker for a sale or transition is an afterthought, but Francis wanted to take a more proactive approach to his business. He started an outbound business development team, focuses heavily on marketing rather than “waiting for the phone to ring,” and advising up through the contract process to make sure both parties are satisfied in the end.

Moving forward

Francis shared five steps someone can take to become more resilient: (1) Don’t shy away from the hard stuff; (2) move from triage to strategy; (3) control your controllables; (4) do something bigger than yourself; and (5) action cures apathy. Francis cites family, team and purpose, in addition to giving back, as ways to keep you and your company moving in the right direction.

What’s next?

Read the full interview on Thrive Global, then contact the experts at PTS to start your dental practice journey.

October 20, 2020

PTS Welcomes Matt Zolfo to Transitions Team

Zolfo’s deep expertise in the dental and health care sector is an asset for dentists who are selling practices

COLORADO SPRINGS, Colo., Oct. 20, 2020 /PRNewswire/ — Professional Transition Strategies (PTS), a company that represents dental practice buyers and sellers and offers brokerage and practice consulting services, today announced that Matt Zolfo has joined the team as a mergers and acquisitions consultant. Zolfo will use his decade and a half of experience in the dental and health care sectors to maximize returns for dentists and dental groups that are selling practices.

A graduate of Baylor University who is based in the Dallas-Ft. Worth area, Zolfo began his career helping dentists realize their dream of opening a new practice or expanding operations when he served as a business development, infrastructure and technology consultant at Henry Schein. Over his 14 years with that company, Zolfo was instrumental in setting up approximately 850 practices and gained valuable experience with practice expansions and dental service organization (DSO) operations.

More recently, Zolfo directed strategic initiatives at Simplifeye, driving company growth through healthcare technology and leading product development projects. At both organizations, Zolfo gained insight into how the business of dentistry and healthcare is evolving as well as the skills needed to facilitate growth and maximize value in a landscape increasingly driven by private equity investment and practice consolidation. This experience makes him uniquely qualified for his new role at PTS.

“Matt has proven over his career that he is a force of nature in the dental world by fostering trust with the hundreds of doctors he has worked with,” Founder and President Kyle Francis said. “I am excited to see him translate that trust and experience into the creative and profitable strategies that PTS offers all of our clients!”

Zolfo notes that heightened private equity interest in the dental industry is driven by the realization that it is a stable and lucrative sector. Although the practice transition industry is growing to match increasing demand, PTS stands out because it was founded on the principle that there’s more to transition than buying and selling. As a full-service practice transition company, PTS partners with dentists to streamline and systemize business operations to maximize practice value.

“I’m excited to join PTS because Kyle has built a truly unique company,” Zolfo said. “I’m focused on making sure dentists get a fair valuation, which requires expertise in investing, and ensuring that the buyer is a great fit for the seller. Having had the joy and privilege of helping dentists and groups open new practices at the beginning of my career, it’s gratifying to assist dentists who are selling practices, a fitting bookend, to maximize practice value for dentists who work with PTS to transition their practices.”

October 19, 2020

How to Navigate the Negotiation Process of a Dental Practice Transition

A dental practice transition shouldn’t be taken lightly, no matter which side of the contract you’re on. In fact, this is your chance to stand up for what you need in order to move forward with this next phase of your life. After all, you’ll want to set yourself up for success, whether you’re buying your first dental practice or selling your business for the last 20 years. Here’s how to navigate the negotiation process of a dental practice transition.

Representation

As part of the negotiation process, both the buyer and the seller will each have their own broker to act as a fiduciary for the best interest of their party to negotiate on behalf of. Another option is a transaction broker that does not have fiduciary for buyer or seller but instead acts as a neutral resource to help both parties complete a transaction.

Letter of intent

When a letter of intent (LOI) is reviewed with the seller’s broker, within five days, a response is expected. In addition to the options to accept counteroffer in terms of price, closing date and more, many sellers will want to include an employment contract as part of the negotiation, though most states won’t allow it. Also, declining the offer doesn’t mean the seller won’t accept another offer but rather they don’t want to negotiate, so think twice before laying those terms on the line.

Negotiation

The negotiation process doesn’t have to include a lot of papers back and forth over the course of five days. Rather, it is a conversation between broker and seller and broker and buyer. The goal is to come up with terms that are amenable to all parties. Once the terms are reached, both parties sign the LOI, and the due diligence process begins.

Contracts

Over the course of 30 days, the buyer and seller will enter into a series of documents detailing the transaction, including the purchase agreement, which goes into the specifics of both hard and soft assets. As part of this agreement, asset allocation is the way the purchase price is divided up as a negotiation between the buyer and the seller.

What’s next?

Contact the experts at Professional Transition Strategies for more information on the negotiation and entire dental practice transition process.

October 13, 2020

How the November U.S. Presidential Election Can Affect Your Dental Practice’s Value

It’s an understatement to say a lot is on the line for this November’s presidential election in the United States. But is your dental practice one of them? The short answer is no, the outcome of next month’s election will not make or break your dental practice. Here’s why with both points and counterpoints for each argument, no matter which side of the aisle you sit on.

Market forces

Point: Market forces will actually help guide the value of your practice.
Counterpoint: “Some speculate that the future of the republic hinges on the outcome of the next election,” Forbes reports in an article about how the stock market has performed under every president. “But for smart investors it doesn’t really matter who wins.”

Taxes

Point: With a tax increase, you’ll bring home less money.
Counterpoint: In order to fund the massive COVID-19 spend, an increase in taxes is inevitable.

Minimum wage

Point: Minimum wage will increase.
Counterpoint: No one is paid minimum wage in dentistry. Assistants are typically paid twice as much as minimum wage, and they are historically the lowest-paid employees in a dental office.

Single-payer system

Point: You’ll have to resort to a single-payer system in your dental office.
Counterpoint: The chances this will be in place within the next four years, as well as include dental, is incredibly small.

Shutdowns

Point: Your practice will be forced to shut down again due to COVID-19.
Counterpoint: It has been well documented that the next round of COVID-19 hot spots will not be dental offices as personal protective equipment (PPE) is already in place.

Pandemic

Point: There is no end in sight to the current pandemic.
Counterpoint: The pandemic will continue to unfold, regardless of who is in office. The nature of a pandemic is that it takes place worldwide, not just in the United States.

Employee benefits

Point: The government will mandate all employees to be given health benefits.
Counterpoint: This is more likely to gain steam on a state level rather than a federal level, so pay close attention to any state elections taking place in your area.

Increased regulation

Point: As part of the pandemic response, an increase in regulations can lead to an increase in cost for your dental practice.
Counterpoint: Similar to how PPE costs were handled, a lot of doctors may choose to pass this onto patients so that it is not necessarily the burden of the practice.

Conclusion

If Biden wins: Nothing will really happen. It’s not the end of the world.
If Trump wins: Nothing will really happen. It’s not the end of the world.

What’s next?

Contact the experts at Professional Transition Strategies to learn how to prepare for any disaster that may lie ahead.