Should I Sell My Dental Practice by Myself?

man in front of computer

You survived dental school, opened the practice of your dreams, but now are ready to start the transition process. You’ve worked so hard for so many years, it may only seem natural to want to take the sale of your business in your own hands. Whether you’re gearing up for retirement or just want to release managerial responsibilities, you won’t want to go it alone. After all, your time is money, and you’ll want to focus on keeping your staff and patient attrition rates up during this time. Here’s one example of how hiring Professional Transition Strategies (PTS) can make a difference in the long run.

The backstory

A single practice in a suburb of Portland, Oregon, was doing $2.5 million in collections. The doctor-owner had been approached in the past by dental service organizations (DSOs) about undergoing an affiliation. One DSO offered the owner $4 million for a joint venture model only.

The process

The dentist came to PTS to see how we could help lever up the deal and show him more options. Together we explored potential partnerships, associateships and more transition options to ensure the doctor was making the best decision for his transition goals. By hiring an experienced dental practice broker, he was also afforded more marketing opportunities for his practice in front of more qualified buyers than he could have on his own.

The outcome

We worked with the dentist to secure a joint venture/holding company deal for an enterprise value of close to $8.2 million from the exact same group that offered $4 million initially. By working with us, he received six other offers that not only leveraged up the various offers, but it also gave him the ease of mind to understand market comparables and be more excited and comfortable about his decision.

What’s next?

Contact the experts at PTS to learn more reasons why you should hire a dental practice broker for the transition of your business.

How to Get the Most Out of Your Dental Practice Transition

man in front of computer

You survived dental school, opened the practice of your dreams, but now are ready to start the transition process. You’ve worked so hard for so many years, it may only seem natural to want to take the sale of your business in your own hands. Whether you’re gearing up for retirement or just want to release managerial responsibilities, you won’t want to go it alone. After all, your time is money, and you’ll want to focus on keeping your staff and patient attrition rates up during this time. Here’s one example of how hiring Professional Transition Strategies (PTS) can make a difference in the long run.

The backstory

A single practice in a suburb of Portland, Oregon, was doing $2.5 million in collections. The doctor-owner had been approached in the past by dental service organizations (DSOs) about undergoing an affiliation. One DSO offered the owner $4 million for a joint venture model only.

The process

The dentist came to PTS to see how we could help lever up the deal and show him more options. Together we explored potential partnerships, associateships and more transition options to ensure the doctor was making the best decision for his transition goals. By hiring an experienced dental practice broker, he was also afforded more marketing opportunities for his practice in front of more qualified buyers than he could have on his own.

The outcome

We worked with the dentist to secure a joint venture/holding company deal for an enterprise value of close to $8.2 million from the exact same group that offered $4 million initially. By working with us, he received six other offers that not only leveraged up the various offers, but it also gave him the ease of mind to understand market comparables and be more excited and comfortable about his decision.

What’s next?

Contact the experts at PTS to learn more reasons why you should hire a dental practice broker for the transition of your business.

3 Things You Should Know Before Affiliating With a DSO

man in front of computer

You survived dental school, opened the practice of your dreams, but now are ready to start the transition process. You’ve worked so hard for so many years, it may only seem natural to want to take the sale of your business in your own hands. Whether you’re gearing up for retirement or just want to release managerial responsibilities, you won’t want to go it alone. After all, your time is money, and you’ll want to focus on keeping your staff and patient attrition rates up during this time. Here’s one example of how hiring Professional Transition Strategies (PTS) can make a difference in the long run.

The backstory

A single practice in a suburb of Portland, Oregon, was doing $2.5 million in collections. The doctor-owner had been approached in the past by dental service organizations (DSOs) about undergoing an affiliation. One DSO offered the owner $4 million for a joint venture model only.

The process

The dentist came to PTS to see how we could help lever up the deal and show him more options. Together we explored potential partnerships, associateships and more transition options to ensure the doctor was making the best decision for his transition goals. By hiring an experienced dental practice broker, he was also afforded more marketing opportunities for his practice in front of more qualified buyers than he could have on his own.

The outcome

We worked with the dentist to secure a joint venture/holding company deal for an enterprise value of close to $8.2 million from the exact same group that offered $4 million initially. By working with us, he received six other offers that not only leveraged up the various offers, but it also gave him the ease of mind to understand market comparables and be more excited and comfortable about his decision.

What’s next?

Contact the experts at PTS to learn more reasons why you should hire a dental practice broker for the transition of your business.

5 Reasons to Sell Your Dental Practice to a DSO

man in front of computer

You survived dental school, opened the practice of your dreams, but now are ready to start the transition process. You’ve worked so hard for so many years, it may only seem natural to want to take the sale of your business in your own hands. Whether you’re gearing up for retirement or just want to release managerial responsibilities, you won’t want to go it alone. After all, your time is money, and you’ll want to focus on keeping your staff and patient attrition rates up during this time. Here’s one example of how hiring Professional Transition Strategies (PTS) can make a difference in the long run.

The backstory

A single practice in a suburb of Portland, Oregon, was doing $2.5 million in collections. The doctor-owner had been approached in the past by dental service organizations (DSOs) about undergoing an affiliation. One DSO offered the owner $4 million for a joint venture model only.

The process

The dentist came to PTS to see how we could help lever up the deal and show him more options. Together we explored potential partnerships, associateships and more transition options to ensure the doctor was making the best decision for his transition goals. By hiring an experienced dental practice broker, he was also afforded more marketing opportunities for his practice in front of more qualified buyers than he could have on his own.

The outcome

We worked with the dentist to secure a joint venture/holding company deal for an enterprise value of close to $8.2 million from the exact same group that offered $4 million initially. By working with us, he received six other offers that not only leveraged up the various offers, but it also gave him the ease of mind to understand market comparables and be more excited and comfortable about his decision.

What’s next?

Contact the experts at PTS to learn more reasons why you should hire a dental practice broker for the transition of your business.

What You Need to Know About the DSO Consolidation Trend

man in front of computer

You survived dental school, opened the practice of your dreams, but now are ready to start the transition process. You’ve worked so hard for so many years, it may only seem natural to want to take the sale of your business in your own hands. Whether you’re gearing up for retirement or just want to release managerial responsibilities, you won’t want to go it alone. After all, your time is money, and you’ll want to focus on keeping your staff and patient attrition rates up during this time. Here’s one example of how hiring Professional Transition Strategies (PTS) can make a difference in the long run.

The backstory

A single practice in a suburb of Portland, Oregon, was doing $2.5 million in collections. The doctor-owner had been approached in the past by dental service organizations (DSOs) about undergoing an affiliation. One DSO offered the owner $4 million for a joint venture model only.

The process

The dentist came to PTS to see how we could help lever up the deal and show him more options. Together we explored potential partnerships, associateships and more transition options to ensure the doctor was making the best decision for his transition goals. By hiring an experienced dental practice broker, he was also afforded more marketing opportunities for his practice in front of more qualified buyers than he could have on his own.

The outcome

We worked with the dentist to secure a joint venture/holding company deal for an enterprise value of close to $8.2 million from the exact same group that offered $4 million initially. By working with us, he received six other offers that not only leveraged up the various offers, but it also gave him the ease of mind to understand market comparables and be more excited and comfortable about his decision.

What’s next?

Contact the experts at PTS to learn more reasons why you should hire a dental practice broker for the transition of your business.

How to Affiliate with a DSO when You’re Not Ready to Retire

man in front of computer

You survived dental school, opened the practice of your dreams, but now are ready to start the transition process. You’ve worked so hard for so many years, it may only seem natural to want to take the sale of your business in your own hands. Whether you’re gearing up for retirement or just want to release managerial responsibilities, you won’t want to go it alone. After all, your time is money, and you’ll want to focus on keeping your staff and patient attrition rates up during this time. Here’s one example of how hiring Professional Transition Strategies (PTS) can make a difference in the long run.

The backstory

A single practice in a suburb of Portland, Oregon, was doing $2.5 million in collections. The doctor-owner had been approached in the past by dental service organizations (DSOs) about undergoing an affiliation. One DSO offered the owner $4 million for a joint venture model only.

The process

The dentist came to PTS to see how we could help lever up the deal and show him more options. Together we explored potential partnerships, associateships and more transition options to ensure the doctor was making the best decision for his transition goals. By hiring an experienced dental practice broker, he was also afforded more marketing opportunities for his practice in front of more qualified buyers than he could have on his own.

The outcome

We worked with the dentist to secure a joint venture/holding company deal for an enterprise value of close to $8.2 million from the exact same group that offered $4 million initially. By working with us, he received six other offers that not only leveraged up the various offers, but it also gave him the ease of mind to understand market comparables and be more excited and comfortable about his decision.

What’s next?

Contact the experts at PTS to learn more reasons why you should hire a dental practice broker for the transition of your business.

Why Now Is a Good Time to Join a DSO

During these uncertain times, you may be hesitant to make a drastic change. But now more than ever, dental service organizations are looking for private practices to purchase in spite of economic standings. Banks are still lending, and DSOs are still buying. Here’s why you should consider selling your practice to a DSO in the foreseeable future. 

Buyer’s choice

New buyer groups have emerged in light of the recent changes. Fewer legacy DSOs will be buying practices at this point as they need to concentrate their efforts on managing the ones they have. Smaller DSOs, Small Business Investment Company-backed DSOs, new private investment-backed DSOs, and family office-backed DSOs will emerge as frontrunners when it comes to buying. 

Act now

Deals now will receive 2019 values thanks to earn-outs in the next year, if not sooner, while those that wait will see a lesser value. Waiting puts at risk lesser values in 2021 since 2020 numbers will weigh heaviest during the valuation process. What’s more, tax rates are expected to double. It’s easy to forget that cash is kind in times of need. 

Benefits

Partnering with a DSO means support with operations, marketing, research, purchasing, recruiting, and, above all, a guaranteed exit strategy, among other reasons — all of which are need more now than ever. 

Targeted states

DSOs have identified the following states for possible purchases: Arizona, Colorado, Florida, Georgia, Indiana, Ohio, Rhode Island, Tennessee, and Virginia. Other states include Arkansas, Connecticut, Delaware, Illinois, Iowa, Maryland, Massachusetts, Minnesota, Mississippi, Missouri, North Carolina, Pennsylvania, South Carolina, Utah, and Wisconsin. 

What’s next?

Contact the experts at Professional Transition Strategies to get a prospectus done and figure out if selling to a DSO in these times is the right course of action. 

Why DSOs Can Pay More for a Practice than a Single Practitioner

Now that you know for a fact that fewer dental practices are selling to individuals, the next natural question is, “Why?” When it comes to putting pen to paper, selling to a dental service organization can make financial sense for both the buyer and seller. Here’s what you need to know to make sense of the process.

Private equity money

Since DSOs typically do not have to rely on bank financing because they are funded by private equity groups, they can pay more for practices than the standard individual. What’s more, you’ll get a higher valuation because a DSO won’t take hard assets into account but rather will focus on collections and other finances. DSOs also have private equity money, which is favorable to a bank over an individual buyer when it comes to securing a loan.

Economies of scale

With an increase in dental service organizations comes more options available to dentists looking to sell. More doctors today are affiliating with DSOs than ever before because of the variety available. Selling to a DSO makes sense when the seller is looking to stay on with the practice but wants to release managerial responsibilities, such as in a retirement situation or anyone who is looking to maintain a work-life balance.

Cost structure optimization

DSOs have gotten a negative reputation because of their seeming corporate interest. A DSO is a likely buyer when the seller is looking to stay on with the practice but wants to release managerial responsibilities, such as in a retirement situation or anyone who is looking to maintain a work-life balance. Selling to a DSO allows you to focus on the clinical side and patient care without contributing time and money associated with running a business.

Loan amount

Banks are typically not able to loan on larger practices that value somewhere around $2 million to single practitioners; however, DSOs can. Simply put, banks essentially have a set amount of how much they will loan a dental practice, while DSOs have the ability to compete in bidding wars without set limits.

What’s next?

Contact the experts at Professional Transition Strategies to see which transition option works best for you.

Why Are Fewer Dental Practices Selling to Individuals?

It’s no secret that fewer dental practices are selling to individuals than ever before. That’s not to discourage new or transitioning dentists but rather some encouragement to think outside the traditional transition box. Here’s what you need to know to get your dental practice transition on track.

Increased DSOs

With an increase in dental service organizations comes more options available to dentists looking to sell. More doctors today are affiliating with DSOs than ever before because of the variety available. Selling to a DSO makes sense when the seller is looking to stay on with the practice but wants to release managerial responsibilities, such as in a retirement situation or anyone who is looking to maintain a work-life balance.

DSO funding

Since DSOs typically do not have to rely on bank financing because they are funded by private equity groups, they can pay more for practices than the standard individual. What’s more, you’ll get a higher valuation because a DSO won’t take hard assets into account but rather will focus on collections and other finances. DSOs also have private equity money, which is favorable to a bank over an individual buyer when it comes to securing a loan.

Transition options

More practices are forming private groups and are more interested in associates than bringing on partners than ever before. Most dentists take on an associate in hopes of potentially selling the practice in the future, and because the average dental school loans are close to $300,000, dentists typically need to take on an associate for a few years prior to buying a practice.

Experience

Simply put, new dentists are less specialized than older dentists who are selling their practices. As is the case with a general dentist who has practiced for more than 30 years and has now decided to specialize in TMJ or implants, a new doctor hasn’t practiced long enough to specialize in these aspects of general dentistry.

What’s next?

Contact the experts at Professional Transition Strategies to figure out which selling option is right for you and your dental practice.

3 Reasons to Start Your Dental Practice Transition Early

dentist working on patient

Dental practice transitions don’t happen overnight. In fact, a well-laid plan can take as long as five years if done properly. Even if you aren’t ready to hang up the proverbial hat, it doesn’t hurt to take a few steps in the right direction. Here are some suggestions to make sure your dental practice lands in the right hands. 

More transition options

Once upon a time, the only options for transitioning out of a dental practice were to sell to another dentist or close its doors. But today, the options are seemingly endless. You can choose to sell your practice in whole or a portion to a partner for a longer-term transition plan, sell your practice but continue to work as an associate, merge with another successful dental practice, affiliate with a dental service organization, among others.

More offers

Your options aren’t limited to the type of transition but also the offers you receive. If you wait until the last minute to transition out of your practice, you may be stuck in a situation where you have to take the first offer you receive. By starting early, you can be more discerning on offers that come in and truly only move forward with the one with which you feel most comfortable.

Increase value

The necessary step of valuating your dental practice not only helps determine which type of transition would be best, but also tells you what upgrades need to be made before selling your business. If the value of your practice isn’t enough to clear your debts, you can decide if you need a few more years to build up the value of your practice before taking that next step.

What’s next?

Learn more about your transition options with the e-book “Strategies for Transition,” then contact the experts at Professional Transition Strategies to begin the process.