Month: August 2024 - Triumphant Partners

Month: August 2024

6 More Questions to Ask a DSO

by EOSTriumphant

You likely have many questions if you’re debating selling your dental practice to a dental support organization or DSO. Choosing a dental support organization is a big decision that will significantly impact your career and the future of your dental practice. You need to make sure you’re selecting the right DSO for your specific needs and your practice’s unique situation. 

However, every dental support organization is different, and what might be true for most might not be true for all. Developing a list of questions to ask potential DSOs is imperative. Luckily, Triumphant Partners has years of industry experience to provide. We recommend consulting the questions contained below. If you do your job right, you can successfully screen potential DSOs using these questions to ensure you only entertain the best dental practice offers. Read on to learn more! 

What Are the Terms of Staying On?

Each DSO will have specific requirements for your role after the sale of your practice. Some might allow for a quick exit from the practice. Others might mandate the dentist selling the practice stay on for a set amount of time. Be sure to consider your specific goals when having this discussion with a DSO. If you want to sell your practice and leave quickly, you’ll need to make sure that the potential DSO is ok with this option. The finer details will need to be ironed out at closing. Still, getting a high-level view of the DSO’s standard operating procedure can be incredibly helpful when beginning initial conversations. 

Who Makes Business Decisions?

If you plan on staying on as a practicing dentist, you must know your role. Many dentists stay on with a DSO with the expectation that they will retain control of the practice’s business decisions. Some transition agreements are structured this way, but it isn’t uncommon for the DSO to control many elements of practice operations. Depending on the DSO and their desired terms, several key business decisions could be out of your hands. 

What Does Compensation Look Like?

There are a host of different ways to structure a dental practice transition agreement, and the specific terms could drastically impact your compensation. Sign-on bonuses, profit sharing, and a percentage of collections are all possible elements of your earnings, and slightly different compensation terms could lead to drastically different compensation. Ask the dental support organization for a walk-through of these terms to better understand your total compensation. 

What Changes Will I See? 

Each DSO is a little different. There will always be some degree of change when selling and transitioning a dental practice, but the changes you can expect will vary from DSO to DSO. A thorough walk-through of 30, 60, 90, and 180 days into the transition is a great way to gauge future changes. It also allows you to prep your staff and patients as needed to ensure that no one is surprised by the transition. 

What Do Other Dentists Think about Your Organization? 

See if the DSO can put you in touch with another dentist for a consultation. Your professional network could have impressions of or direct experience with the DSO in question. Don’t be afraid to leverage your professional connections to acquire an objective look behind the curtain. You likely know dentists, whether from your local market, school, or professional organizations, who are affiliated with the relevant DSOs. Talk to them and pick their brains for their thoughts as you continue conversations with DSOs. 

What Can You Provide?

Many DSOs offer their dentists access and support outside of day-to-day business operations and execution. This can include everything from continuing education, professional development conferences, proprietary operational processes, and practice technology enhancements. Ask your potential DSO what else they can provide your practice. There are many benefits of signing with a DSO outside of the offer dollar figure and terms. 

Navigating the Sale Process

Comparing all the different DSOs can take a lot of time and effort. If you’re busy maintaining your practice and tending to your patients, this can feel like an overwhelming task. If you’re hoping to sell your dental practice to a DSO on your terms, it can be advantageous to have outside help.

If you need a seasoned industry expert in your corner, call Triumphant Partners today! Selling and transitioning your dental practice is challenging; a trusted advocate with years of experience transitioning dental practices can help you sell your practice at your terms and on your timetable. Our team can offer the following: 

  • Insight into Your Practice’s Unique Value
  • Access to Our Private Buyer Network
  • Help with Vetting & Letters of Intent
  • Relevant Financial Documents for Your Attorneys at Close

Call your trusted Triumphant advisor for your courtesy consultation today and begin the process of transitioning your dental practice!

Mistakes to Avoid When Transitioning a Dental Practice

by EOSTriumphant

Congratulations, you’ve sold – or are planning to sell – your dental practice! This is an exciting time in your professional career, and there’s much to consider. However, your work doesn’t end at close. Rather, it’s just beginning. 

Transitioning a dental practice successfully requires deep knowledge of the industry, input from a number of professionals, and quite a bit of management on your side. If you’re not prepared, it can be easy to make common mistakes that will impact you and your business deeply. Triumphant Partners has overseen countless dental transitions and has noticed a few trends regarding less-than-optimal transitions. 

If you want to transition your dental practice, pay attention to these common mistakes. Your career will thank you for it. 

Mistake 1: Not Enough Time Planned

It takes time to transition the ownership of a dental practice. There might be situations where a selling dentist could conceivably leave their practice shortly after closing, but they’re usually few and far between. It’s much more common for dentists to stay on for a period of time. Your timeline from the decision to sell to close could be well over a year. Make sure you thoroughly plan and give yourself enough time. 

Trying to sell without enough time could lead to accepting offers you normally wouldn’t. It will take time to find the right buyer, vet them, negotiate, close, and transition, and you might be contractually required to stick around after the sale. Typically, we recommend planning on the sale and transition process taking a year or more. Keep this in mind as you plan your transition. The more time, the better. 

Mistake 2: Accepting an Unfair Offer

Business valuations are part-art, part-science. You might think you understand your practice’s worth, but don’t entertain any offers from DSOs without undergoing a professional practice valuation. You could easily accept a low-ball DSO offer for your practice and potentially leave hundreds of thousands of dollars on the table. 

The best way to combat this is to have an intensive valuation of your practice. Any seasoned practice valuator will take the time to review your financials and help you understand what your practice is worth. There are several ways to value a dental practice, but it’s best to focus on your EBITDA. Understanding your Earnings Before Interest, Taxes, Depreciation, and Amortization will give you a quick view of your business’s value versus its obligation. 

Mistake 3: Failing to Plan the Details

There are many details within a transition agreement that all have a significant impact on your practice. Timelines, hiring decisions, and operational planning must be detailed within your contract. Failing to pay attention to these details can greatly impact your satisfaction with your agreement.  Nothing is worse than signing on with a DSO without fully understanding your agreement, as this can break your business relationship. 

To avoid this, be upfront with your potential DSOs about terms when considering an offer. The more visibility you have into what you can expect post-sale, the better. Having a trusted and experienced attorney in your corner is also a must for this stage. 

Mistake 4: Going It Alone

So many details go into transitioning the ownership of a dental practice. You likely are still trying to take care of your patient base and prepare for the next stage of your career. Tackling this project without seasoned, industry-experienced support is a recipe for disaster. The right advisor can help you sell your practice quicker, above the asking price, and on your terms, all while saving you time, stress, and energy. 

If you’re looking for help selling and transitioning your dental practice, look no further than Triumphant Partners! We are your dedicated partner in helping you through the dental practice transition process! You’ve put a lot of time and effort into your practice. Make sure that you have a partner who recognizes that work and can help you smoothly transition your dental practice. 

As your dental transition advisor, Triumphant Partners is here to assist with the following:

  • Evaluations
  • Finding & Vetting Potential Buyers
  • Equipping Your Attorneys with Pertinent Data through Close
  • & More!

Call your trusted Triumphant advisor today for a courtesy consultation!