Category: Dental

Running a dental practice is no small feat. Every day is different, and you and your staff are constantly encountering new challenges in patient care, practice management, and regulatory compliance.

Part of the fun of working in such a challenging industry is the introduction of new modes of operating. If you’re looking to introduce new ways of streamlining the operations of your dental practice, you need to be aware of subscription-based patient plans. 

New pricing and patient care models can help you better meet your patients’ needs and grow your practice. A subscription-based pricing model is one interesting way to offer first-rate dental care to your patients, and it has taken the industry by storm. 

Growth of the Model 

You have likely seen the rise of the subscription economy in your personal life. Whether it’s wine, makeup, meal kits, or international snack boxes, Americans are flocking to the subscription-based model. Dental healthcare is no different. Kleer, one of the pioneers in dental membership, was named one of the fastest-growing companies in America in 2023. According to some estimates, this model looks to be the future of dental care, and its growth shows no signs of abating in the near future. But what are the benefits of adding a subscription-based dental care model to your practice?

Customization

While there are some constants in dental care, every patient is different. Yes, we all have some baseline dental hygiene needs that should be tended to, but not every patient needs the exact same sort of treatment. Dental care packages or plans allow you to customize care to what each patient needs and better tend to the patient’s unique dental health. 

Increase in Patient Access

By some estimates, 80 million uninsured Americans forego dental care yearly. That’s an astonishingly high number and has a massive impact on the country’s dental health. As any dentist or healthcare practitioner can tell you, preventative care is the backbone of successful patient outcomes. Rising insurance costs within the dental industry prevent many Americans from seeing a dentist, increasing the odds of a negative dental health outcome in the future. This is a huge blindspot within the dental industry’s coverage and threatens millions’ dental health.

Subscription-based dental coverage is one interesting way to offer better coverage to these underserved Americans and improve their oral health. Monthly subscription fees are often cheaper than insurance premiums, and they also help the dentist’s bottom line, as there is no insurance cut in this equation. 

Preventative Care

A subscription-based model is a great way to increase access to preventative care and improve patient outcomes. A care plan or package can help patients bundle their preventative care costs together. Imagine a dental practice offering a care package with two cleanings within a year. This packaged approach makes scheduling this critical care easier and allows the underserved to receive much-needed preventative care that will keep their oral health strong in the future. 

Retention

Patient attrition is an oft-forgotten element of dental practice management. Depending on how you measure the phenomenon and where your practice is in both lifecycle and market, patient attrition can be between 10-20%. That’s a problem if you’re a dentist looking to increase your patient base. Imagine implementing a successful marketing campaign and improving your net new patient numbers by 15%, only to discover that your patient attrition rate of current patients was 10%. Your astounding 15% increase is now cut to 5%, a respectable but lesser spike in growth. If your patient attrition rate was on the higher end at 20%, your marketing campaign hasn’t so much increased net new patients as merely lessened the rate of loss. As a dentist, you should measure your patient attrition rate. 

Subscription-based models can help mitigate this loss. If your patients are already paying for your services monthly or annually, there’s no reason for them to avoid coming in. This can be a win-win for all parties involved. The dentist in question stabilizes their collections and patient base, which is a key step in evaluating and growing the practice in the future. The patients involved secure access to quality preventative oral healthcare. 

Call Triumphant Partners

A subscription-based model of oral healthcare can be an interesting way to court the interest of a dental support organization or dental partnership organization. As mentioned previously, this pricing model is beneficial for dentists looking to increase recurring revenue, provide access to more patients, decrease patient attrition, and increase net new patients seen. These are all incredibly valuable metrics to track if you want to sell your dental practice to a DSO or DPO. The better these metrics are for your practice, the better your asking price. If you’re looking to sell your dental practice, this sort of subscription service could be a force multiplier for your dental practice. 

If you’re looking to sell your dental practice, call Triumphant Partners today! Selling your dental practice can be a complicated process to undergo by yourself. A trusted, industry-leading partner is a must-have to help you sell your dental practice on your terms. Call Triumphant Partners to discuss how to sell your dental practice at your asking price and what your dental practice is worth!

Selling and transitioning a dental practice is not for the faint of heart. This is likely the most significant business transaction of any given dentist’s life, and a lot is riding on any one deal. When partnering with a dental broker to help you value, price, sell, and transition your dental practice, you want a fighter in your corner. 

However, it’s equally important that you find a dedicated and passionate dental broker with integrity and commitment to you and your interests. The industry has plenty of unscrupulous actors who want to make a buck over all else, even if that means sacrificing the best interests of their clients for a bigger payday. The pitfalls of this approach are myriad; read on to learn precisely why excellent customer service and character matter in the dental broker industry. 

Industry Knowledge

The dental industry is a multi-faceted and ever-evolving beast. The process of transitioning your dental practice is much the same, but many dentists just don’t have the business background to transition their practice effectively. The minutiae of valuing a practice, the common throughlines of dental support organization business models, and the specific terms outlined in any deal will likely just be outside the area of expertise of any dentist. A trusted partner can help streamline and simplify the industry and help you apply this knowledge to benefit yourself and your practice. 

Your Interests Only

The dental practice transition industry can be complicated, so it’s only natural to seek an industry expert to help walk you through the process. However, it is worth noting that not all potential partners with are truly in your corner. If you’re a dentist looking to sell to a dental support or dental partnership organization, you need to know that selling directly to a DSO or DPO could backfire. 

For one, the dental support organization or dental partnership organization in question is incentivized to offer you the lowest figure possible for your dental practice. It’s just a part of doing business for them, and you can expect to be lowballed on your first offer from any established dental support organization or dental partnership organization. 

If you don’t have an accurate and data-backed assessment of the value of your dental practice and why it is worth the dollar figure you’re asking for, you’re likely to accept a low offer. This is especially true if the organization in question contacts you first. Oftentimes, if the support organization reaches out to you first, you’re likely not receiving their best offer and that’s intentional. Many DSOs and DPOs have teams that do nothing but cold-call dental practices with information about what their practice is worth. These lowball first offers can seem incredibly tantalizing to a struggling and overworked dentist, but they often leave money on the table.

That’s why an integral part of the brokerage process is having a dedicated dental broker who only represents your interests. 

The Danger of a Bad Business Deal

Few things will lower your career satisfaction as much as a bad business deal. Unfortunately, the process of transitioning your dental practice is rife with opportunities to sign on for a bad deal. 

Maybe you don’t want to stay on with the practice after close. Perhaps you want to retain control over key practice leadership decisions. Maybe you want to be solely responsible for hiring and firing decisions. A poorly planned transition deal can leave you obliged to honor terms you’re not ecstatic about.  Moreover, a poorly planned business deal or an unhappy ownership situation can dramatically impact your mental health and career satisfaction. 

The wrong dental practice broker won’t be too concerned if they stick you with a poor fit, so long as they get their cut. A true partner will help you understand your goals and needs and then will work effortlessly to connect you with a DSO or DPO that is well-positioned to meet those needs. The right dental brokerage will never pressure you to move forward with a deal that will not delight you. The wrong one might assure you that a proposed partnership is a great fit, even if they know this isn’t optimal. 

Dedication to You 

This ethical and professional dedication is key to successfully transitioning your dental practice. Without full faith and confidence in your dental broker, you risk ending up in a business deal that isn’t in your best interests. Your broker might walk away with a nice payday, but you might be less than satisfied with the results. Moreover, you might be stuck honoring obligations to your new dental support partner that don’t align with your broader business goals. 

That’s why you must partner with Triumphant Partners today! Our model is straightforward. We think transitioning your dental practice is easier for all parties involved when you’re allied with a dental broker that puts your interests first. We bring our buy-side experience and deep industry contacts to your practice transition. Our team understands that the success of our clients is how we succeed as dental practice brokers, and we always keep that as our guiding light. We don’t receive a red cent from a buyer; we only make money when our clients are delighted. 

Triumphant Partners is also a smaller, boutique brokerage. This means that our clients are not one of thousands, lost in the mill of a behemoth, publicly-traded company. Instead, our clients have access to our team members when needed and will always be able to reach an actual, breathing, and engaged Triumphant Transition Partner employee. Rest assured that you are contracting with a helpful partner dedicated to making this process as simple as possible for you and your practice. 

Know that Triumphant Partners is always looking to innovate and add value to your transition, whether it’s access to our medical CPA and auditors on staff, access to our HIPPA-compliant encrypted financial documentation portal to save you time, or a customized sales strategy.

 Call now for your free dental practice valuation!

The value of any business is dynamic. Changes in the market, client base, or macroeconomic conditions all impact your practice’s value, making accurate evaluation a challenge. Dental practices are no exception. If you’re preparing to sell your dental practice, understanding your dental practice’s worth is foundational to the process. Without knowing your value, you can’t determine or assess offers effectively. The valuation process is crucial as it considers both financial and non-financial factors that influence the practice’s worth. Worse, you might accept a low-ball offer and sell your practice for tens of thousands of dollars less than it’s worth. Therefore, obtaining an accurate appraisal is essential to ensure a fair and precise evaluation.

Unfortunately, common practice valuation mistakes often plague dentists during this critical process. However, with a bit of expertise, these pitfalls are entirely avoidable. Read on to learn more!

Introduction to Dental Practice Valuations

Dental practice valuations are a cornerstone of the dental industry, providing practice owners with a precise assessment of their practice’s worth. Whether you’re planning for the future, considering a practice transition, or preparing to sell, understanding your practice’s value is essential. Various valuation methods, such as the income approach, market approach, and asset-based approach, each offer unique insights by considering different factors like cash flow, patient demographics, and tangible and intangible assets. These methods collectively help in determining the total value of a dental practice.

An accurate practice valuation is crucial for determining the market value of a dental practice. It ensures that practice owners receive a fair price, reflecting the true value of their hard work and investment. By understanding the nuances of these valuation methods, dental practice owners can make informed decisions that align with their financial goals and market conditions.

Understanding Dental Practices

To achieve an accurate valuation, it’s essential to understand the unique nature of dental practices. These businesses require specialized equipment, a skilled team, and a loyal patient base to thrive. Additionally, while new patients typically bring in higher profits, it is essential for practice owners to also prioritize the service quality and retention strategies for existing patients to maximize overall profitability. The value of a dental practice is influenced by various factors, including its financial performance, patient demographics, and prevailing market conditions.

Practice owners must consider these elements when evaluating their practice’s worth, as they can significantly impact the overall value. A comprehensive understanding of these factors allows valuators to identify the strengths and weaknesses of a practice, ultimately providing a more accurate assessment. This understanding is vital for making strategic decisions, whether for growth, transition, or sale.

Valuation Approaches

Several valuation approaches are employed in dental practice valuations, each with its own strengths and weaknesses. The income approach focuses on the practice’s expected future cash flows, providing insight into its earning potential. Capitalization rates, which generally range from 15% to 30%, are a critical factor in this method, calculated by dividing excess annual earnings by a risk factor that reflects the level of investment risk. The market approach, on the other hand, examines the sales of similar practices in the area, offering a comparative perspective. Lastly, the asset-based approach values the practice’s tangible and intangible assets, such as dental equipment, patient records, and goodwill.

Often, a combination of these approaches yields the most accurate valuation, as it considers multiple factors that impact the practice’s value. Dental practice brokers and valuators must be well-versed in these methodologies to provide practice owners with a comprehensive and accurate assessment of their practice’s worth.

Cash Flow Analysis

Cash flow analysis is a crucial step in determining the value of a dental practice. By examining the practice’s historical financial data, practice owners can estimate future earnings and identify areas where costs can be reduced and revenue can be increased. This analysis is essential for understanding the practice’s financial performance and making informed decisions about dental practice transitions.

A comprehensive cash flow analysis considers various factors, including revenue, expenses, and capital expenditures. It provides a detailed picture of the practice’s financial health, highlighting strengths and areas for improvement. For instance, a practice with solid revenue but high discretionary expenses might find opportunities to streamline operations and boost profitability.

The value of a dental practice is significantly influenced by its cash flow, as it directly impacts the practice’s ability to generate future earnings. Accurate cash flow analysis is essential for practice owners, buyers, and sellers to make informed decisions and ensure a successful practice transition.

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Discounted Cash Flows Method

The discounted cash flows method is a widely used valuation method in the dental industry, providing a reliable estimate of a dental practice’s value. This method involves estimating the present value of expected future cash flows using a discount rate, which accounts for the time value of money. Essentially, it recognizes that a dollar today is worth more than a dollar in the future.

To apply the discounted cash flows method, valuators consider the practice’s projected cash flows, growth rate, and discount rate. By analyzing historical financial data and projecting future performance, this method offers a comprehensive picture of the practice’s financial health and earning potential.

The discounted cash flows method is particularly valuable because it provides a detailed and forward-looking assessment of a practice’s value. However, it is essential to use this method in conjunction with other valuation methods to ensure an accurate and well-rounded valuation.

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Comparing Yourself to the Wrong Peers

Dentists often use what’s called a “market-based valuation” to estimate their practice’s worth. This method involves comparing your practice to other dental practices in the area. Theoretically, this should work well since nearby practices often operate in similar markets. For example, a dental practice in urban New Jersey might compare itself to other urban practices, while one in rural Texas would look to its local or similarly rural peers.

While helpful as a starting point, this method has significant limitations. Even among local competitors, practices can differ widely in areas like equipment, debt levels, patient base, cash flow, and market positioning. These granular factors can skew the valuation. Comparing your practice to one down the street that recently sold might lead to a misleading valuation.

Accurately determining a practice’s value is crucial, especially for those considering selling their practice. A market-based valuation can be a useful guide, but it shouldn’t be your sole method of determining your practice’s worth.

Neglecting EBITDA

Financial metrics like collections and profit provide insight into a dental practice’s value but are often incomplete. For instance, one practice might collect twice as much revenue as another yet be less operationally efficient and profitable.

This is where focusing on EBITDA—Earnings Before Interest, Taxes, Depreciation, and Amortization—becomes critical. By removing financial variables like taxes and debt, EBITDA highlights what really matters: cash flow. While net income is helpful, EBITDA offers a clearer picture of the core financial health of your dental practice. Additionally, when determining an offering price, buyers adjust cash flow to account for various factors including discretionary expenses, which encompass charitable contributions, owners’ compensation, and personal expenses related to the owner.

It also enables comparisons across vastly different practices. For example, a large multi-location practice might have massive collections but an EBITDA margin of only 15%, whereas a mid-sized practice with fewer collections might achieve an EBITDA margin of 30%. At first glance, the larger practice appears more successful, but its lower EBITDA margin reveals operational inefficiencies. The earnings method, particularly the Capitalized Earnings Method, is also relevant here as it evaluates a practice’s anticipated profits by analyzing net earnings and projecting long-term performance. This method utilizes the net present value in conjunction with a capitalization rate to estimate total practice valuation, highlighting its dependence on predicting future earnings and the challenges associated with such predictions.

Ignoring Equipment and Real Estate

Market-based valuations and financial metrics alone don’t paint the full picture of a dental practice’s value—especially when it comes to tangible assets like equipment, real estate, and leasehold improvements.

Equipment, real estate, and leasehold improvements are significant contributors to a practice’s overall value. Gross revenue also serves as a foundational figure for calculating the practice’s worth, often using a multiplier to estimate valuation. Two practices with similar patient bases, debts, and cash flow could differ greatly in valuation if one has cutting-edge technology while the other uses outdated equipment. Likewise, owning the real estate where your practice operates can greatly increase its value. The valuation method used to assess these tangible assets plays a crucial role in determining the practice’s market value.

Real estate ownership can also influence tax implications and deal structures when selling your practice, so be sure to account for these factors. Ignoring these assets could leave substantial value on the table.

Financial Records and Analysis

Accurate financial records and thorough analysis are critical components of dental practice valuations. Essential documents like income statements, balance sheets, and cash flow statements provide a snapshot of the practice’s financial health. Analyzing these records helps identify trends, strengths, and weaknesses, which ultimately influence the practice’s value. During a practice sale, engaging professionals such as dental brokers or appraisers ensures an accurate appraisal, aiding in negotiating a fair price.

Practice owners must maintain precise and up-to-date financial records to ensure an accurate valuation. Additionally, valuators need to be skilled in financial analysis to interpret the data effectively and provide a comprehensive assessment. This meticulous approach ensures that the valuation reflects the true financial performance of the practice.

Industry Trends and Conditions

Industry trends and conditions play a significant role in dental practice valuations. The dental industry is dynamic, with technological advancements, regulatory changes, and shifts in patient demographics continually shaping practice values. Staying informed about these trends is crucial for both practice owners and valuators. Many practices calculate their market value based on their cash flow, which includes evaluating their income through various methodologies.

For instance, changes in reimbursement rates or evolving patient demographics can directly impact a practice’s revenue and, consequently, its value. A thorough understanding of these industry trends and conditions is necessary to provide an accurate assessment of a practice’s worth. This knowledge enables practice owners to make informed decisions, ensuring their practice remains competitive and valuable in a changing market.

Market Multiples and Adjustments

Market multiples are a common valuation method used in the dental industry, providing a benchmark for determining a dental practice’s value based on its financial performance. This method involves comparing a practice’s revenue, earnings, or cash flow to that of similar practices in the market.

Adjustments are made to the market multiples to account for various factors such as location, size, and growth potential. For example, a practice in a high-demand urban area might command a higher multiple than one in a rural location. These adjustments ensure that the valuation reflects the unique characteristics and market conditions of the practice.

While market multiples and adjustments offer a quick and easy way to estimate a practice’s value, they should be used in conjunction with other valuation methods to ensure accuracy. Considering various factors and using multiple approaches provides a more comprehensive and reliable valuation.

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Working with Dental Practice Brokers

Dental practice brokers play a crucial role in the buying and selling of dental practices, providing expertise and guidance throughout the transition process. With extensive knowledge of the dental industry and market trends, brokers help practice owners determine the value of their practice and develop effective marketing strategies to attract potential buyers.

For buyers, dental practice brokers assist in finding the right practice and negotiating a fair price. Their insights and expertise ensure that both buyers and sellers navigate the complex transition process efficiently and effectively, saving time and reducing stress.

Working with a dental practice broker is essential for practice owners who want to ensure a successful and profitable transition. Brokers provide valuable support, from initial valuation to final sale, ensuring that the process is smooth and that both parties achieve their financial goals.

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Maintaining a Valuable Practice

Maintaining a valuable dental practice requires ongoing effort and attention to detail. Practice owners must stay up-to-date with industry trends and developments to ensure their practice remains competitive. A well-maintained practice with modern equipment and technology is more attractive to potential buyers.

Building a strong patient base and providing excellent customer service are crucial for increasing patient loyalty. A valuable dental practice is well-organized, efficient, and profitable, with a focus on high-quality patient care.

Regularly reviewing the practice’s financial performance and making necessary adjustments ensures continued growth and success. Maintaining a valuable practice requires a long-term commitment to excellence, but the rewards are significant. By following these tips, practice owners can ensure their dental practice remains attractive to potential buyers and that they receive a fair price when they decide to sell.

Selling Without a Dental Transition Partner

Valuing a dental practice isn’t a task you should take on alone. Online calculators and DIY approaches are unlikely to produce an accurate valuation. Your dental practice is a complex business, and proper valuation is crucial to ensuring you sell on your terms and to the right buyer. Understanding dental practice valuations is essential for successful practice transitions, impacting financial planning and negotiations for both current owners and potential buyers. Navigating dental practice sales involves managing complexities from identifying potential buyers to negotiating agreements. An incorrect valuation could result in lost opportunities and unrealized financial goals. Therefore, obtaining an accurate appraisal when partnering with a dental transition partner is vital.

Don’t go it alone—call Triumphant Partners for a free consultation today! Partnering with a trusted dental advisor provides more than just an accurate valuation. The right transition partner can:

• Connect you with qualified buyers
• Help you screen potential buyers
• Offer insight into current market conditions
• Provide tailored advice to meet your needs and find the right fit

Triumphant Partners is here to help. Call now for your courtesy consultation!

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!

When you’re looking to sell your dental practice, you likely have many questions, and rightfully so. Selling to the right buyer could be a significant next step in your career. Selling to the wrong buyer could completely upend your career and waste one of your greatest assets. 

A lot is riding on the sale of your dental practice, and this sale is likely the most complex, valuable, and intricate of your career. The stakes are high, and you can’t afford any missteps. 

To help you prepare, our team has compiled a list of common mistakes to avoid when selling your dental practice. Read on to learn more!

Mistake 1: Not Knowing Your Worth

Imagine trying to sell a car without knowing the approximate worth of the vehicle in question. You might be able to field quotes, haggle, and finalize a deal, but you’ve likely left money on the table by going in without a good estimation. The complexity and nuance of sales are bad enough when you’re selling a car; now, imagine what it’s like when you’re trying to sell a business with an existing client base, experienced staff, and high-end medical equipment. The potential for misquote or undervaluation is high. 

We always recommend getting an accurate practice valuation before fielding any inquiries. Trust us; you’re flying blind without knowing what your dental practice is worth. 

Mistake 2: Accepting the First Offer

Your first offer is likely not the best offer. This is particularly true if you’ve just received a cold call from a Dental Partnership Organization. The dollar figure of the deal offered might be enticing, but it’s likely not the fair market value of your dental practice. The fact that these DPOs are taking the time to cold call you is a sign that your practice is valuable. Don’t be tempted to bite at the first offer. Take the time to understand the value of your practice and screen a list of qualified and interested buyers. If you take the time to field several offers, the odds of selling your practice at your terms and for your ideal price point increase significantly. This is where trusted transition counsel can be invaluable. 

Your dental practice transition advisor will be able to help you gauge the many offers you’re considering and can even help you find new interested buyers. 

Mistake 3: Not Reading the Fine Print

Joining a Dental Partnership Organization or a Dental Support Organization isn’t just a question of dollar amount. Oftentimes, the terms of the agreement have just as much lasting impact on how you live and work with the organization in question. Details around who controls hiring and firing decisions, profit-sharing, and other key practice leadership elements can make or break your satisfaction with your new partner.  For instance, if you expect to retain control over staffing, you might be in for a rude awakening if your new partner has its eyes set on some hiring changes within your practice. That can sour your new business partnership and fast. 

Few things in life are as burdensome as a complex business partnership; make sure that whatever organization you sign with is the right partner for your unique situation. 

Mistake 4: Not Calling Triumphant Partners 

Selling a dental practice is challenging work and one that requires expertise, dedication, and skill. If you’re looking for a trusted dental practice transition advisor to help you navigate the complexity of the sale process, look no further than Triumphant Partners. Our advisors have a deep and intimate knowledge of the dental industry – knowledge that they apply to your case to help you sell your practice on your timetable and terms. At TTP, we offer:

• Practice Evaluations
• Access to Private Buyer’s Network
• Help Screening Applicant & Drafting Letters of Intent
• Pertinent Financial Documents to Equip Your Attorneys at Close

You need a dedicated and savvy dental practice transition advisor if you want to sell your dental practice on your terms and timeline.  Selling your dental practice can be complicated, but it doesn’t have to be with Triumphant Partners. Call now for a free consultation to discuss your needs further!

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!