Selling to a DSO vs Private Buyer
If you’re considering selling your practice, you’re naturally excited about the process. Selling your dental practice is a huge step for most dentists and one of the most critical transitions in your life. The sale of your practice offers you many opportunities and, if done correctly, can be an excellent springboard into another career, business venture, or stage of life.
However, selling your practice isn’t always straightforward and can frustrate many dentists. What’s more, the decision to sell to a dental support organization (DSO), dental partnership organization (DPO), or a private buyer is a critical one to consider. Each potential buyer offers unique benefits and disadvantages and may be better suited to specific practice goals. Knowing the pros and cons of selling a dental practice to a DSO or a private buyer is paramount as you continue to explore selling your private practice.
The experts at Triumphant Transition Partners have a quick run-through of the pros and cons of selling to a DSO or private buyer to help you make an informed decision. To help you think through your goals, we’ve developed this blog as a series of questions to ask yourself along the way. Ask yourself these questions and consider which option seems to be the best for your specific situation. Read on to learn more!
Do I Want To Stay at the Practice?
Consider whether you want to stay at your practice as you contemplate selling. Many dentists love dentistry but find themselves overwhelmed by the sheer number of tasks and duties they need to handle as a dentist. For these dentists, patient care is rewarding and fulfilling, but responsibilities like payroll, procurement, hiring, and marketing eat into their free time. Soon, these dentists find themselves working overtime just to manage their practice and increasing their odds of burning out as they do.
Selling to a dental support organization makes the most sense for these dentists. DSOs have put time and resources into developing the processes, systems, and playbooks to streamline the operational efficiency of any practice. Adding a dental support organization thus means that the dentists in question can focus on their patient care and leave the operational items to the DSO. If you’re a dentist looking to stay at your practice, a dental support organization makes a lot of sense and could be a great way to advance your work-life satisfaction.
Do I Want to Leave?
Is your end goal leaving the practice of dentistry? Maybe you want to pivot to another field, but dentistry isn’t in the cards for you at this point. If this describes your situation, the right dental support organization or private buyer could be a good fit. It will really depend on your ability to assess your unique situation. Private buyers are not confined by a dental support organization’s policies and best practices, and many dentists find it easier to sell to these persons and entities. Often, a DSO or DPO will have a much cleaner process for transitioning a dental practice, and many dentists enjoy knowing that their staff and patients are in good hands.
It’s also important to consider whether or not you’re looking to completely walk away from your practice post-sale. If you’re looking to leave your dental practice, relocate, or retire, then a private buyer is typically going to be in your best interest. Why? A DSO/DPO will expect a certain time commitment from you post-sale, while a private buyer transition will have little to no restrictions in place for staying on at the practice.
Do I Have a Specific Goal to Fund?
Many dentists view the sale of their practice as the first step towards a financially profitable future. If you have a specific goal you wish to fund with the sale of your practice, your selling process will look different. Maybe you want to retire. Perhaps you want to put the proceeds towards a new business venture. Regardless of your specific goals, selling to the right private buyer or DSO is critical.
A private buyer could be the right fit if you have a specific potential buyer you’re considering, like another dentist or one of your practice’s associates. And even if you don’t have a particular dentist in mind, our team can help you find the perfect private buyer for your practice.
Inversely, many DSOs and DPOs have larger budgets, so if you’re looking to maximize the sale of your practice, a DSO or DPO could net you a higher offer. Regardless of whether you choose to sell to a private buyer of DSO/DPO, Triumphant Transition Partners can help you find the right buyer for your unique situation.
Contact Triumphant Transition Partners
Selling a dental practice is hard, but working with Triumphant Transition Partners is easy. There are a lot of essential questions to ask yourself as you navigate the selling process, and one of the most important is the value of your practice. Without a clear understanding of the profitability of your practice, expressed as your Earnings Before Interest, Taxes, Depreciation, and Amortization, you’re running the risk of undervaluing your practice and leaving money on the table.
Reach out to Triumphant Transition Partners today for a courtesy consultation to assess the profitability of your practice. Working with Triumphant Transition Partners also gives you access to our exclusive private buyers’ network, giving you more qualified buyers to select from. Call Triumphant Transition Partners today!