Category: Dental

Why Consider Working With a Dental Practice Brokerage?

If you’re considering selling your dental practice, the process may seem overwhelming. You’re already struggling to maintain your practice and take care of your patients. Selling the practice on top of all of that might sound impossible. That’s why many dentists turn to a dental practice broker to help them through the sale and practice transition process. If the five situations listed below apply to you, it might be time to consider partnering with a dental practice broker to ensure your best interests are protected.

Introduction to Dental Practice Sales

Dental practice sales involve the transfer of ownership of a dental practice from one individual or entity to another. This process can be complex and requires expertise in areas such as dental practice appraisals, office sharing arrangements, and associate partnerships. Dental practice brokers, like TTP, specialize in facilitating the sale of dental practices and can provide guidance and support throughout the dental practice transition process. With their extensive knowledge and experience, dental brokers can help dentists navigate the process of buying or selling a dental practice, ensuring a smooth transition and maximizing the practice’s value.

Understanding Dental Practice Brokers

A dental broker is a professional who specializes in facilitating the buying and selling of dental practices. They provide expert guidance and support throughout the entire process, from the initial valuation to the final closing. They are always available to answer any questions and provide essential advice during the buying or selling process. With extensive knowledge of the dental industry and transactions related to dental practices, dental brokers are well-equipped to help dentists navigate the complex process of buying or selling a dental practice, ensuring a smooth transition.

Dental brokers often have a network of contacts and resources, including dental plans and insurance companies, to help facilitate the process. They can also assist in facilitating the addition of dental associates and partnerships. This network can be invaluable in finding the right buyers or sellers and ensuring that all aspects of the transaction are handled efficiently. Additionally, dental brokers can provide valuable advice on practice management and operations, helping dentists to optimize their business and make informed decisions.

By working with a knowledgeable dental broker, dentists can save time and reduce stress, allowing them to focus on their patients and practice. The expertise and support provided by a dental broker can make the entire process of selling or buying a dental practice much more manageable and successful.

Understanding the Process

The dental practice transition process typically begins with a valuation of the practice to determine its worth. This involves assessing the practice’s financial performance, patient base, and physical assets, such as equipment and property. Once a valuation is determined, the practice is listed for sale, and potential buyers are identified. Dental practice brokers play a crucial role in this process, as they have access to a network of buyers and can facilitate communication between parties. A successful transition requires careful planning, professionalism, and expertise, which is why many dentists turn to dental practice brokers for guidance. By working with a reputable dental broker, dentists can ensure that their practice is sold for a fair price and that the transition is completed efficiently.

You Don’t Know Your Dental Practice Value

Have you ever tried to sell something without an idea of what it’s worth? It can be a frustrating process. Valuing your dental practice accurately is crucial to ensure you receive a fair offer. Without a benchmark of what it’s worth and what others are selling for, it’s impossible to know if you’re receiving a fair offer or not. This doesn’t usually happen with simple transactions like groceries or reselling furniture. However, when it comes to a sale as complicated and multi-faceted as selling a dental practice, understanding the value of your dental practice is paramount. Undervaluing your practice by as little as 5% could be tens of thousands or hundreds of thousands of dollars lost. What’s more, if you don’t understand what your practice is worth, you could agree to a low-ball offer without understanding that you left a considerable amount of money on the table.

A good dental broker is a great way to prevent that from happening. A detailed practice evaluation is usually the first step in the services provided by any dental broker worth their salt. The dental broker will then sit down with you and review the findings of that valuation. What’s your EBITDA? Do you own your real estate? What are comparable practices in your region selling for? Without the right dental broker, you’re going to miss out on vital information that will help you through the sales process.

It’s important to remember that buyers will only represent their interests. They might make promises, offer exciting numbers, and say the right things when proposing or finalizing a deal, but they represent their own interests at the end of the day. Dental brokers represent your interests and fight to ensure you get the best terms and dollar value possible. Partnering with a dental broker can help you both understand what your practice is worth and how to get the best possible terms.

You Don’t Know The Industry

As a dentist, you know the dental industry forward and backward. However, the practice transitions industry is a slightly different beast. Dental transitions require careful planning and expertise to avoid common pitfalls and ensure a smooth process. The dental support organizations and dental brokers involved are likely not familiar names to you. What’s more, these organizations are merely the surface of the industry. Details like financing, the practice transitions process, and how to find the right attorney are also central to a successful sale. And we haven’t even started discussing the terminology and specific financial, business, and legal terms you’ll need to know to navigate the process successfully.

Most dentists will only sell one practice in their career, so it stands to reason that the process can be overwhelming and complicated. A good dental broker will simplify the practice transition process for you and give you helpful advice and recommendations.

Don’t conflate the conversation you have with any one dental support organization with the industry at large. There are countless DSOs out there, so if you have a conversation with one DSO, you have only had one conversation with a DSO. There are countless options out there. A good dental broker will also have industry connections in their pocket that they’ve developed and cultivated over the years that you’ll have access to. Use these dental connections to streamline the process and find the right fit for you and your needs. By partnering with a practice broker, you’re tapping into their connections and expertise to make your life easier.

You Don’t Know Your Goals

If you’re contemplating selling, you probably are visualizing the sale of the practice as the ultimate goal. These decisions can significantly impact your careers and future professional trajectory. That is sometimes the case, but we encourage you to consider WHY you want to bring a dental support organization on board. Are you selling your dental practice to retire? Are you looking for support on the administrative side of your practice but want to retain decision-making rights on certain key business calls like staffing? Do you want to only practice dentistry and don’t need to retain decision-making powers in the practice? Are you trying to leave dentistry entirely and need a large nest egg to finance your next endeavors?

These are all valid goals, but too many dentists try to sell their practice without understanding why they’re selling. Partnering with a dental broker gives you access to a team of trusted advisors who can help you think through your goals and then offer tailored recommendations accordingly.

You’re Having A Hard Time With The Entire Process

There are countless industry-specific facets when it comes to selling a dental office. Finding the right buyer who aligns with your values and professionalism is crucial for a successful sale. Everything from letters of intent to qualifying prospective buyers is a specific part of this process and one that you’re likely not very familiar with. Other documents, like asset purchase agreements, practice assessments, and draft contracts, also might be outside of the scope of your knowledge. A good dental broker will help you with these details and prepare you accordingly.

Inefficient Transitions

Inefficient dental practice transitions can result in a significant loss of value for the seller. This can occur when the practice is not properly valued, or when the transition process is not managed effectively. Dental practice brokers can help mitigate these risks by providing expert guidance and support throughout the transition process. They can also help identify potential buyers and facilitate communication between parties, ensuring that the transition is completed smoothly and efficiently. Additionally, dental brokers can provide valuable insights into the market, helping dentists make informed decisions about their practice. By working with a reputable dental broker, dentists can avoid common pitfalls and ensure a successful transition.

You Don’t Have The Time

If you had the time to immerse yourself in the practice transition process from the very beginning, you might be able to learn some of the nuances of how to sell a dental practice. The process to buy a dental practice involves numerous steps and can be time-consuming. However, this will require a lot of time, and it’s likely time you cannot spare if you’re trying to run a dental practice. The last thing you want is for your sale process to take longer than necessary because you don’t have the time to deal with potential buyers.

The simple fact of the matter is that correspondence with potential buyers, submitting paperwork, and sales strategy takes time. Many dentists just don’t have the time to dedicate to the sale process, and outsourcing to a dental broker might then make more sense. When you choose a dental broker, they are able to assume responsibility for the process. This dedicated expertise means that no balls are dropped and that your practice transition is prioritized without taking time and energy from your priorities.

Buying a Dental Practice

Buying a dental practice can be a significant investment, with many expenses incurred before closing. It is essential to work with a reputable dental practice broker who can provide guidance and support throughout the process. Dental brokers can help buyers identify potential practices, facilitate communication with sellers, and negotiate the terms of the sale. They can also provide valuable insights into the market, helping buyers make informed decisions about their purchase. When buying a dental practice, it is crucial to consider factors such as the practice’s financial performance, patient base, and physical assets. A thorough analysis of these factors can help buyers determine the practice’s value and make an informed decision about their purchase. By working with a reputable dental broker, buyers can ensure that they find the perfect match for their needs and goals.

You’re Building Generational Wealth

The sale of your practice is likely the biggest deal you’ll ever be involved in. Achieving success in the sale of your practice can significantly contribute to your financial future. If done correctly, you can leverage the sale of your practice to build a nest egg for your future and the future of your family. It’s imperative to have great representation at the table, however, if you’re trying to build generational wealth for your family. Securing 20-40% more on a practice deal could add a pretty penny to your nest egg and be that much more to pass on to your family. The right dental practice brokers will help you secure the best deal possible.

Benefits of Working with a Dental Broker

Working with a dental broker offers numerous benefits for dentists looking to buy or sell a dental practice. These professionals bring a wealth of experience and knowledge to the table. One of the primary advantages is the expert guidance and support provided throughout the entire process. Dental brokers have a deep understanding of the dental industry and can offer valuable insights and recommendations to ensure a successful transaction.

In addition to their expertise, dental brokers have access to a network of contacts and resources, including dental plans and insurance companies. This network can be instrumental in finding the right buyers or sellers and ensuring that all aspects of the transaction are handled smoothly. Dental brokers can also provide valuable advice on practice management and operations, helping dentists to optimize their business and make informed decisions.

Another significant benefit of working with a dental broker is the time-saving and stress-reducing aspect. By handling the complexities of the transaction, dental brokers allow dentists to focus on their patients and practice. This dedicated expertise increases the chances of a successful transaction and ensures that no details are overlooked.

Dental brokers also bring improved negotiation skills to the table, ensuring that dentists get the best possible price for their dental practice. With their knowledge of the dental industry and experience in handling transactions, dental brokers can secure favorable terms and conditions for their clients.

Finally, client testimonials and references provide peace of mind and confidence in the broker’s abilities. Knowing that other dentists have had successful experiences with the broker can reassure dentists that they are making the right choice in partnering with a dental broker.

Contact Triumphant Partners, Dental Brokers

Selling a dental practice is complex, but it doesn’t need to be difficult. We provide updates and important information via text messages to keep you informed throughout the process. The right dental broker will help you sell your first dental practice on your terms, above asking price, and fast! If you’re interested in achieving your career goals, contact Triumphant Transition Advisors today!

We’re here to help you…

• Evaluate Your Practice

• Discuss Your Goals

• Present Your Practice To Our Private Buyers Network

• Qualify Buyers

• Equip Your Attorneys With Pertinent Documentation & Data

• Negotiate Final Sale On Your Terms & Price

Contact Triumphant Transition Advisors For Your Courtesy Consultation!

The closing negotiations of a dental practice deal are imperative for your career. If you’ve practiced as a dentist and have decided to sell, you have likely poured countless hours into your practice. You’ve seen it all and have spilled so much blood, sweat, and tears while caring for your patient base. Successfully selling your dental practice is the final step in ensuring that your patients and practice are cared for. You want to rest easy knowing that your dental practice sale is successfully in its closing stages.

If you want to finalize your dental practice transition and close the deal successfully, you’ll need to come prepared, and that will almost certainly require outside assistance. Triumphant Partners has helped countless dentists do just this over the years and has identified a few items that are always worth having when nearing close. Read on to learn more! 

Financial Information

Any dental support organization or dental partnership organization will want to review your financials with a fine-toothed comb. They’re in the business of partnering with qualified companies, after all, and your financial data will be of the utmost interest throughout the sales cycle. 

This starts with a thorough and detailed practice evaluation at the onset of the sales cycle. Once you know the dollar figure of your practice, you’re better equipped to field offers and answer questions from buyers. This is the first step for financial documentation in the dental practice sale cycle; without a complete practice evaluation, you run the risk of accepting a below-market offer and could potentially leave tens of thousands of dollars on the table.

However, while practice evaluation is the first step, it is not the last.  The practice evaluation stage is usually followed by a review of your finances, which are documented thoroughly at the end of the deal. While you may have to disclose the below before closing, you should have most of, if not all of, the following at the end of the deal:

• Tax Returns
• Cash Flow Statements
• Evaluation of Practice Tech
• Collections Reports
• Production Reports
• Growth Projections

Operational Information 

Your practice is so much more than just financial information. You’ll need to have a slew of operational details as you prepare to close. The dental support or partnership organization will be interested in financials, but they will also be interested in ensuring operations can continue unabated after close. They could want to see any or all of the following to help achieve that goal. Even if all of the below are not necessarily required at closing, it’s recommended that you assemble and package everything you can to assist in the transition period. 

• Standard Operating Procedures
• Office Processes
• Staff Employment Documents
• Catalog of Inventory
• Full Assessment of Assets On Site
• HR Paperwork
• Information Surrounding the Storing and Management of Patient Data
• Practice Marketing Material
• Calendars, Log-Ins, and Other Necessary Operational Details

Compliance & Legal  Information 

The dental support or dental partnership organization you’re selling to will also want to ensure that all your legal affairs are in order. Transitioning a dental practice will require alignment between your attorneys and the buyer’s, which usually requires an extensive legal review. Be prepared to provide any of the following. 

• Purchase Agreements
• Business License
• Business Entity Information
• Deeds
• Corporate Charter
• Bill Of Sale
• Proof Of Safety Compliance
• Any Outstanding Legal Documents Or Legal Affairs

Cross Your Ts and Dot Your Is with Triumphant Partners

An industry expert in your corner is invaluable when selling your dental practice. A dental broker with established industry connections and a proven track record of closing beneficial deals for their clients is a tremendous resource to have when nearing the close of a deal. 

That’s where Triumphant Partners comes in! 

You have enough on your plate. Let the experts at Triumphant Partners help you gather all of the pertinent information and prepare to close your deal. Too many dental practice brokers treat their client practices as transactional deals; we know that your practice is one-of-a-kind and will always help you find the most qualified buyer for your specific needs and goals. Relational deal-making motivates our team; we will always bring that approach to your deal. 

The right buyer is more than mere financials; it’s a buyer who will integrate with the treatment philosophies, practice dynamics, and mission statements you’ve built at your office over the years. Triumphant Partners is here to help you find that buyer. 

We promise to…

• Always Represent Your Interests and Your Interests Only
• Help You Value Your Practice
• Guide You through the Sales Cycle
• Assist Your Attorneys with Valuable Information at Close

Call your friendly Triumphant Transition advisor for a courtesy consultation today!

No industry is ever genuinely stagnant. New tech, regulations, consumer preferences, and methodologies are constantly emerging and causing shifts in industry execution and standard operating procedures. 

Regardless of your industry, an annual review will almost always reveal sizable changes from the past year. While many sectors change year over year, the dental industry, in particular, is poised for a rapid acceleration in the rate of change as new technologies and patient preferences dominate the field. If you’re monitoring the dental industry, you’re likely aware of just how important the following trends are for those practicing. 

The experts at Triumphant Partners leveraged their industry knowledge to put together the below list of dental trends to watch. You are likely already seeing some degree of impact from the phenomenon below, and we expect that to continue in the months and years ahead. Better understanding the below is your first step towards capitalizing on the industry’s direction and planning accordingly. Read on to learn more about the dental trends we think you should be paying attention to! 

Teledentistry

Increased access and improved technology have led to a boom in teledentistry. The idea of seeing a dentist virtually for your dentistry needs was the stuff of science fiction a few years ago. Now, the medium is taking off and becoming more and more mainstream. The reasons are myriad, but ease of access, convenience, and the ability to care for mobility-limited or rural patients were top drivers. Teledentistry isn’t perfect for every practice, and the prevalence of technology can be a limiting factor for many dentists, particularly those in smaller practices. 

However, if you are a dentist looking to understand where your practice can better serve your patients, researching and implementing a successful teledentistry program is a great option. Most practices that have begun offering teledentistry have only done so post-COVID-19, so the medium is still in its infancy. However, we expect to see this form of patient care being par for the course of most dental practices by the end of the decade if this rate of adoption continues. 

Increased Demand for Skilled Positions

Dental practices require so much more than an excellent dentist to stay up and running. Experienced and professional support staff are paramount to your success as a practice. Practice managers, in-house marketers, billers, dental hygienists, and other support staff are essential to delivering good care. The industry is poised to see a growth in demand for these positions. 

Complexity of Practice 

Practicing as a dentist is more challenging than it used to be. Running a small business always requires wearing multiple hats, and dentistry is no exception. You may have gone to school to learn how to tend to patient needs, but your dental practice likely requires you to fulfill multiple roles. You may find yourself serving as an in-house marketer one minute, a procurement specialist another, and a facilities manager by the end of the day. This shows no signs of abating. New technology, greater competition for skilled support roles, and new changes to the network landscape all put more and more stress on small, independent dental practices. This has, in turn, led to our next trend: dental industry consolidation. 

Consolidation

Industry forecasts expect dental consolidation to continue throughout the next few years, and the reasons for this are straightforward. Large and operationally efficient dental support organizations (DSOs) are much better positioned to provide support at scale than small, independent practices. DSOs can more efficiently provide everything from procurement and billing support to technology investment and upskilling. This is a compelling offer for many dentists, especially those working upwards of 70 hours a week to keep the practice afloat. We expect to see more and more dentists look to sell their practice to a DSO in the years ahead to streamline their operations and better tend to their patients. 

Call Triumphant Partners 

Selling your dental practice can be a rewarding experience, but it can also be one of the most stressful and harrowing of your life. The industry is constantly evolving, and your practice could or could not be in demand. A seasoned transition partner who knows how to value a practice’s worth properly, structure transition deals for your benefit, and find the right DSO or DPO partner is critical.

That’s where Triumphant Partners enters the picture! Your practice is unique, and you should only be conversing with DSOs or DPOs that align well with your long-term goals! A savvy practice transition partner and advisor can help you find the right buyer and sell your practice on your terms and timetable.

Call your friendly Triumphant Transition advisor for a courtesy consultation today!

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!

The daily life of a dentist can be hectic. Many dentists find their workdays filled with patient care, continuing education, and practice administration. Against this backdrop, dentists can struggle to make time for their personal lives. The difficulty of running a practice and providing excellent clinical care simultaneously often leads to many dentists looking to sell their practice to a dental support organization or dental partner organization. This can be a great move for many dentists. 

However, if you’re already busy as a dentist, you likely don’t know the ins and outs of selling a dental practice. That’s understandable. You’re trying to take care of your patients and run a business. You don’t know the finer points of dental practice sales. The financial statements you need to sell your practice successfully are one such finer point. 

Triumphant Partners has facilitated many dental practice transitions over the years, and trust us when we say that getting your financial statements in order is of the utmost importance.  This will help your broker at the negotiating table. Why? The value of your practice and its projected future earnings are integral bargaining chips when you’re negotiating with a DSO or DPO. Correctly supplying financial statements is the easiest way to increase the value of the final offer you receive from a DSO. Pay attention to the financial statements below as you consider selling your dental practice. 

Good Financial Hygiene Helps The Sale

Before we run through the specific financial statements needed to sell, it is worth pointing out that good record-keeping is crucial to selling your practice. The better you keep up with the financial management of your practice, the easier it is to get your practice in order when you decide to sell. Clean records, good notes, up-to-date balance sheets, well-maintained payroll, detailed profit and loss statements for the past couple of years, and up-to-date dental practice management tools will help you in your quest to sell.  

Relevant Contracts & Paperwork

Every practice’s specific situation is different, so your needs here may differ vastly from those of another dentist. If you want to sell your dental practice, know that the interested partner will want to see relevant contracts. Everything from staff contracts and procurement orders to real estate documents could be applicable. 

While you work to gather this relevant information, pay close attention to all HR information about your employees as you sell to a dental support organization. While you’re passing over employment contracts and hiring information, remember to clarify the details of each employee’s employment.  DSOs will want to know the start date, pay rate, role, benefits, and last raise date of every employee at the practice. This information will expedite and simplify the process for all parties. 

EBITDA

The process of valuing a dental practice can be unwieldy. Different practices exist in various markets, each with unique business situations, patient bases, and company sizes. Measuring practices by collections or cash flow can be useful, but these methods smooth over many important contexts. For instance, a large practice might collect more than a smaller practice but have much higher operating costs. How, then, can dental practices be valued? 

Earnings before interest, taxes, depreciation, and amortization – or EBITDA for short – is the simplest yet most accurate yardstick to judge dental practices. This approach lets you compare different practices across a single metric. Be sure to accurately assess your practice’s EBITDA before you sell. If you don’t know this information, consider a specific EBITDA evaluation to ensure you have the most accurate assessment possible as you sell. 

Partner With Triumphant Partners

Are you a dentist looking to retire or transition out of dentistry? Selling your dental practice to a dental support organization or another doctor may be your best decision, but you don’t need to go it alone. Selling a dental practice can be complicated, technical, and intensive – partner with a dental broker and dental advisor to represent your interests and receive the best possible terms. 

By partnering with Triumphant Partners, you’ll receive:

• A Dedicated & Trusted Advisor Who Only Represents Your Interests
• Access to Our National Private and Group Buyer’s Network for Quick Access to Interested Buyers
• Assistance with Qualifying & Screening Prospective Buyers
• Access To Our Dental-Specific CPAs For The Best Dental Accounting Expertise
• A Review Of Your Dental Ledger For The Past 3 Years To Ensure Accurate & Informative Information and the most value. Every dollar we uncover for you is worth $5-$15.00 dollars on the market
• A Custom and Tailor-Made Practice Evaluation
• Relevant Financial Information to Equip Your Advisor and Broker with Triumphant Partners at the negotiating table

Contact your trusted Triumphant Advisor for a courtesy consultation today! (Please add info@triumphanttransition.com and our web address)

If you’re trying to sell your dental practice, you may have been fortunate enough to receive an offer. That’s a good sign! It shows that you’ve built a solid and resilient dental practice. Not only that, but it’s also a sign that a dental support organization thinks the same way and is willing to buy your practice from you. 

However, receiving an offer on a dental practice is just that – an offer. You still need to ascertain if the offer is fair and if the dental support organization aligns with your goals and long-term needs. Think of this as a “marriage” and talking with DSOs and DPOs as the “dating” phase. If you’re a dentist, you might not have sold many small businesses and can thus be forgiven if you feel overwhelmed by the process. Also, note that each DSO spends roughly $250,000 on direct marketing and mailers to dentists and practitioners because, as the old adage goes, buy low and sell high.

How can you tell if a dental practice offer is fair? Try using the methods below to get a feel for the offer. If one or more of the below is true, you can rest assured that your dental practice offer is fair. 

You’ve Received Multiple Assessments

Valuing a practice can be difficult. The best way to ensure that your dental practice offer is fair is to receive multiple assessments. It’s quite easy for two assessors to have slightly different takes on the cost of a dental practice. Multiple assessments reduce the odds of one assessment being taken as gospel truth. 

This is especially worth remembering if you’re receiving an offer directly from a DSO. These DSO offers are typically lower than the market at large and should never be taken at face value. Additional assessments should be used to counter low-ball offers and give the selling dentist leverage at the negotiation table. If you have met one DSO, you have met only one DSO. 

A savvy assessor will also use multiple assessment methods. If various methods show comparable asking prices, you can rest assured that you have a good gauge of the practice’s value.

A qualified assessor will consider your practice’s:

• Cash-Flow
• Future Earnings
• EBITDA
• Value of Current Assets
• Active and New Patient Base
• Payor Mix
• Competition 
• Marketing spend and branding
• Practice turnover

A custom valuation of the practice is always recommended. A rule-of-thumb valuation might give you a ballpark estimate, but that’s not good enough to sell your practice, which is likely the biggest deal of your life and will directly impact your future and indirectly your team’s future. Trust us; get your practice assessed so you are better positioned to resist unfair offers to buy. 

You Know the Market

A way to tell if an offer is fair is to be aware of trends within the market. If you know what comparable dental practices are going for, you’re well-positioned to push back against unfair offers from DSOs. 

It is worth remembering that this is more complex than knowing what a dental practice in your market sold for. A multi-associate dental practice that owns multiple pieces of real estate will go for a much higher price than a solo practitioner’s dental office. Inversely, a practice with cutting-edge, high-grade medical equipment might be worth more than a practice of the same size with older tech. You must have a trusted advisor to help you through the process and advise on what is and isn’t fair for your practice firmographics. There are many metrics outside of % of collections or EBITDA to determine the true value of your practice. As a sell-side advisory with buy-side experience, we know the trends and metrics that matter for you. 

You’ve Reviewed the Fine Print

It’s easy to get focused on the asking price when reviewing the offer. You should stay focused on this figure, as it’s an important part of any deal. However, the fine print is an often-neglected piece of the puzzle that can make or break your satisfaction with the deal. The deal terms, culture and partner are just as, if not more important for you as a seller. The value will be there if you have the right partners, but anyone can offer a high valuation, but not everyone can get you the high valuation. 

Consider key decisions like hiring, firing, buying power, marketing, the experience of the DSO, who is their sponsor, have they recapitalized healthcare or any platform before. You will be asked to stay on as a dentist with a dental support organization after closing; you might expect to retain control over these decisions and will have full autonomy with the right DSO. If the fine print of your deal specifies that the DSO can hire and fire, you might be in for a rude awakening. 

Few things can sour a business partnership as quickly as differences over business decisions. If your deal contractually obligates you to stay on despite these differences, you may be stuck in an unhappy business partnership. Reviewing the fine print of any terms is necessary to ensure you aren’t stuck in an unfair deal and having a qualified representation that knows the market and timing matters. 

The DSO Aligns to Your Goals

It can be challenging to gauge, but not all DSOs fit all dentists well. Each has its own specific policies, paradigms, and standard operating procedures. A DSO might offer favorable terms and a fair price and still not fit your particular needs well.

You must understand exactly why you’re selling your dental practice and what you want out of the sale. Once you understand this, you’re well-positioned to review offers from DSOs and compare these offers against your unique goals. 

If all of this is overwhelming, know that help from a qualified dental broker is available. Selling and transitioning a dental practice is difficult, tedious, and you don’t know what you don’t know. A trusted partner in the process can help you from listing to closing and everywhere in between. Moreover, they can even help you sell your practice above the asking price and the terms you deserve while impacting your legacy, team, and family in a positive matter. 

An excellent dental broker will:

• Help you screen buyers and vet them thoroughly 
• Assess your practice to help you understand its value
• Have experienced healthcare CPAs and underwriters
• Experience on both the sell-side and buy-side
• Know what metrics matter to a DSO and which ones do not 
• Can handle the lease terms as well as practice terms
• Experienced and have a strong network and relationships with the buyers
• Equip your attorneys with relevant documents
• Serve as a strategic consultant throughout the process
• Offer unique insight into the market as a whole
• Have experience in selling and buying dental practices
• Know the timing of an exit of a DSO and their Sponsorship
• Know the DSO agreements, deal structures, and C-suite level team members

Are you ready to sell your dental practice? Your trusted Triumphant Partners advisor is available for a free courtesy consultation to discuss your unique needs. Call Now!

If you’re a dentist contemplating selling your dental practice, few things are as important as your practice’s value. The dollar value assigned to your practice is not only a foundational element for your financial health but also has a massive impact on the deal.

 A high-dollar figure practice gives you an essential chip at the bargaining table when negotiating with a dental support organization or dental partnership organization. If you plan on selling your practice and staying on board in a dental partnership agreement, you are also incentivized to see the practice’s value rise even after the sale. Regardless of which camp you fall into, a rise in your practice’s value is always good.

However, increasing the value of your practice, whether you intend to sell or stay on as a partner, is challenging.  You may already be up to your neck in clinical care, administrative duties, and operational tasks. Finding the time to increase the value of your practice is a challenge. Luckily, there are proven ways you can increase value and plan for your financial future while still tending to your dental patients. 

Get an Accurate Assessment 

The first and easiest way to increase your dental practice value is to ensure you have the most accurate assessment! Too many dentists get caught up in the hustle and bustle of maintaining a dental practice and never get around to assessing their practice’s value. 

Even if you’ve had a valuation done in the past, you must understand whether or not it was accurate. Staying current with your practice’s value and getting a second opinion practice evaluation is the quickest way to ensure you know your practice’s true value. 

It can also be helpful to have multiple assessments done using various methods. Market-based, cash-based, and asset-based evaluations all have their time and place, and utilizing a variety of ways to appraise a practice offers a more complete picture. 

Invest In Tech

New tech is a crucial piece of growing the value of a practice. New and intricate medical technology can improve your practice’s operational and clinical efficiency, but investing in new tech can also increase the value of your practice. High-end medical equipment offers so many benefits for patient care that its presence can help improve a practice’s overall dollar value. 

Work on Improving Cash Flow

Improving your practice’s financial health can undoubtedly be difficult, but it will certainly increase the value of the practice. To begin, work on accurately measuring your EBITDA – or Earnings Before Interest, Depreciation, and Amortization. This financial score will accurately show how financially viable your practice is. 

From there, you can work on improving your overall financial health. Typically, additional cash flow or surplus revenue is one of the easiest ways to enhance the financial health of your dental practice. Additional customers, increasing collections per customer, or revamping your marketing are all great ways to do this. 

Partner With a DSO to Achieve Value

The aforementioned tactics for increasing your practice’s value are helpful to keep in mind, but they can be easier to set as goals than implement. If you’re struggling to keep the lights on, pay bills on time, and care for your patients, finding the time to improve cash flow, revitalize marketing, and invest in new technology is short of impossible. 

For dentists, partnering with a dental support organization is a great way to improve their practice’s value and operational efficiency, provide better patient care, and maintain a work-life balance. 

Partnering with a dental support organization can help with:

• Operational Excellence
• IT & Tech
• Hiring & Training
• Procurement & Purchasing
• Marketing & Advertising
• Continued Networking & Ongoing Education

If you’re looking to increase the value of your practice as an exit-strategy sale, a dental support organization or dental partnership organization could be helpful. These organizations will pay top dollar for lucrative and well-maintained practices, but a trusted advisor is imperative for your sales success. 

Selling a dental practice can take quite a bit of time, and there are many potentials for a deal to fall through. Everything from a lack of buyers to unqualified prospects to disagreement about terms and price can derail the sale of your practice. When you’re also attempting to keep the practice afloat and provide high-quality care, this can be too much for many dentists.

Partner with a dental broker for optimal outcomes! Triumphant Partners is waiting in the wings to help you sell your practice on your terms and at your price! As dental brokers, we represent your interests and your interests only. We have years of experience on both sides of the deal and leverage that experience to ensure you get what you need from your sale!

Partner with Triumphant Partners for:

• Access to Our Buyer’s Network
• Help Qualifying and Pre-Screening Buyers
• Practice Evaluation
• Help Through the Negotiation Process to Close.

Contact Your Trusted Triumphant Advisor for a Courtesy Consultation Today!