dental broker Archives - Triumphant Transition Partners

Tag: dental broker

5 Signs You Need a Dental Broker

by Triumphant Transition Partners

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.

Understanding Dental 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. 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. 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 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.

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. 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. 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. 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. 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.

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. 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.

You’re Building Generational Wealth

The sale of your practice is likely the biggest deal you’ll ever be involved in. 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. 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 Transition Partners, Dental Brokers

Selling a dental practice is complex, but it doesn’t need to be difficult. 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!

What’s the Difference between a DSO & a DPO?

by Triumphant Transition Partners

If you’re researching how to sell your dental practice, you’ve likely seen the terms “dental partnership organization” and “dental support organization” come up. You may even have contacts at various organizations or know colleagues who have connected with one of them.

 As you’re navigating the dental practice sales process, you might wonder what the difference is between a dental support organization and a dental partnership organization. The differences between the two may seem small, but they can impact your satisfaction as a dentist. Dentists who don’t research the difference between the two do so at their own risk. Selling to the wrong organization could be a disaster for your career and have a detrimental impact on your business satisfaction. 

The dental practice transition advisors at Triumphant Transition Partners are here to help you answer these questions and determine if a dental support organization or dental partnership organization would be your best business partner. 

Differences between Dental Support & Dental Partnership Organizations

Ownership

Generally, a dental partnership organization will grant the selling dentist greater ownership within the practice. Profit-sharing models are more common in dental partnership organizations. Dental support organizations are an excellent option for dentists who want to have some distance from the ownership and business direction of the practice.

Suppose you want to be in the driver’s seat within the practice and are hoping for the best financial deal possible. In that case, you likely want to primarily field offers from dental partnership opportunities. 

Relationship to the Parent Organization

Dental partnership organizations allow the selling dentist to retain practice-level ownership. Even when a dentist sells their practice to a dental partnership organization, they retain a minority ownership of the practice, the very same practice they’ll be operating and seeing patients in. Profit distribution and equity are vested at the practice level, and if you’re a dentist who wants to control your situation, this can be a great way to bet on yourself. When in a situation with the right dental partnership organization, you’ll reap the benefits of your work, which is always great. 

Dental support organizations, on the other hand, usually operate using the 100% sale model, and profit-sharing is much less common. Equity is generally vested in the organization’s collection of practices, not your specific practice. DSOs are great for dentists who don’t want to be in the driver’s seat but don’t offer the same financial incentives as DPOs. 

Decision Making

DPOs tend to preserve the clinical autonomy of the dentist, and the dentist tends to retain a greater degree of control over the routine decisions of the practice. The dentist will have much more say in hiring, firing, strategic direction, and other routine business decisions within the practice. For many practitioners, this is a fantastic option that allows them to grow their practice, better tend to patients, and retain control of the direction of the practice. For others, focusing on patient care while allowing the dental support organization to manage the practice is a better trade-off. 

Is a DSO or DPO Better for Me?

You might wonder which of these organizations is right for you as a dentist. There are, of course, some overarching trends that might be helpful. Generally, dental-support organizations subsume most decision-making authority within the practice and let the dentist focus on patient care. Suppose you’re a dentist looking to merely tend to your patients and want your partner to own the practice’s strategy, procurement, and hiring. In that case, a dental support organization is likely a good option.

However, if you want to remain involved in the practice’s leadership, ownership, and direction, a dental partnership organization is likely a better fit. You’ll retain much more of a voice in the practice’s future while benefiting from an external partner for capital, expertise, and economies of scale. That’s a tantalizing offer for many dentists.

It is worth noting, however, that each situation and practice sale is unique. Your particular goals, practice culture, practice values, and desired terms all significantly impact which option is right for you. Without a detailed consultation and assessment of your practice, offering a tailored recommendation and strategy for your specific needs is impossible. 

If you are trying to determine if a dental support organization or dental partnership organization is right for you, call Triumphant Transition Partners today!

How to Sell Your Dental Practice In 2024

by Triumphant Transition Partners

Dentistry can be a challenging industry. Many dentists have poured countless hours into their careers to reach the point of owning a dental practice. 

You’ve invested an immense amount of time, from undergrad to dental school and beyond, to get here—and now, you might be wondering how to effectively sell your dental practice. It’s not an easy feat, but it is a worthy one. Selling your practice to the right buyer can be an excellent springboard to the next step in your career, whether that’s retirement, growing your practice, or finding a better work-life balance.

However, it’s not as simple as posting your practice online. You’ll need to ensure you’re selling to the right buyer, which isn’t always easy. This is one of the most significant career decisions of your life; the stakes are high. To help demystify the process and guide you through selling your dental practice, the transition experts at Triumphant Transition Partners have put together this step-by-step guide. Read on to learn exactly how to sell your dental practice.

Know Your Value

Knowing the value of your dental practice is the first step in the process. Without an accurate understanding of its worth, you won’t be able to evaluate offers from interested buyers effectively. You might relate this to selling your house – before beginning the process, you must first know its value. Determining this value can be difficult, but just as with your dental practice, it’s critical that you get the assessment correct. If you don’t, then you could be drastically underselling your practice – or, in the case of this example, your house. 

Even if you think you “know” your practice’s value, it’s wise to return to this and reassess. Many common valuation methods might undervalue your practice or overlook relevant aspects that make it more enticing to a buyer. Your dental practice is complex; estimating its value accurately is equally complex and an essential step before you sell.

Know Your Goals

The dollar value of your practice is, of course, important, but every dentist is different. The right business deal for one dentist might be a poor fit for another. That’s why it’s critical to clarify your goals and assess prospective offers against them. Would you prefer to work with a large organization with ample resources and strict processes? Or would you rather have more day-to-day flexibility? Knowing your goals helps you better understand your ideal outcome and adjust your expectations accordingly.

Know Your Preferred Buyer

Any good marketer knows their target demographic when launching a new product. They can describe the demographic and socioeconomic details of their buyer, their motivations, pain points, and potential objections. This detailed ideal customer profile helps the world’s biggest brands understand buying behavior and tailor marketing to attract potential buyers.

While you may not need to know all the specifics that a Fortune 500 company does, you should have a clear idea of what is and isn’t a good fit for you as a seller. For instance, if you want substantial flexibility, many dental support organizations might not be suitable for you. Conversely, a dental support organization could be a great fit if your focus is primarily on patient care and outcomes.

Know Your Advisor

A trusted dental practice advisor is invaluable to the sale and transition process. You may know the dental industry well, but the ins and outs of practice sales and transitions are a different realm. An industry expert with strong business relationships and deep familiarity with practice transitions is a valuable resource. If you’re looking for a dental practice transition advisor, look no further than Triumphant Transition Partners!

A dental practice transition advisor can:

  • Help You Develop Your Ideal Customer Profile
  • Evaluate Your Practice Finances & Assess Its Value
  • Screen Potential Buyers & Assist with Drafting Letters of Intent
  • Keep You Abreast of Market Trends
  • Inform You of Common Pitfalls in Deals & What to Keep an Eye Out For
  • Help Create a Full Auction and Bidding Process 

Call now for your courtesy consultation!

Common Mistakes Made When Selling A Dental Practice

by Triumphant Transition Partners

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 Transition 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 Transition 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 Transition Partners. Call now for a free consultation to discuss your needs further!

3 Things to Bring to a Dental Practice Negotiation

by Triumphant Transition Partners

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 Transition 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 Transition 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 Transition Partners comes in! 

You have enough on your plate. Let the experts at Triumphant Transition 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 Transition 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!

4 Dental Industry Trends To Watch

by Triumphant Transition Partners

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 Transition 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 Transition 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 Transition 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!

6 More Questions to Ask a DSO

by Triumphant Transition Partners

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

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

What Are the Terms of Staying On?

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

Who Makes Business Decisions?

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

What Does Compensation Look Like?

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

What Changes Will I See? 

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

What Do Other Dentists Think about Your Organization? 

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

What Can You Provide?

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

Navigating the Sale Process

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

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

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

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

Mistakes to Avoid When Transitioning a Dental Practice

by Triumphant Transition Partners

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 Transition 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 Transition 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 Transition 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!

Dental Industry 2024 Forecast

by Triumphant Transition Partners

Any industry can change on a dime, and the dental space is no exception. 

A slew of new factors are upending the dental industry in 2024, and there looks to be no end in sight. If you own a dental practice, these tailwinds are just facts of life and ones that you can’t ignore. 

Luckily, the team here at Triumphant Transition Advisors has identified the trends they see on the horizon for 2024. What’s more, we’ve also included some options for capitalizing on these phenomena and taking your dental practice to new heights. Read on to learn more! 

Health Tech Software

New and innovative apps are hitting the market and changing the game. These apps could be used for many things, and more and more dental practices are utilizing software to make their practices run more efficiently. 

The use cases for health tech apps in your dental practice are almost endless. Everything from patient reminders to paperwork management to payment processing could be handled via these apps. Patients are obviously thrilled with these new apps, but they also pose a considerable benefit to your practice’s operational efficiency as well. If done right, these apps can make your practice run much smoother. 

Non-Invasive Treatments 

For many, the term “dentist’s office” conjures up feelings of abject terror. No one wants to have someone else’s hands in their mouth, let alone endure surgery or tooth removal. The cool thing is that dentistry has come a long way in recent years, and innovative and inventive treatment procedures are now hitting the market. 

Previously unimaginable treatments now require hardly any downtown or incision. This revolution in non-invasive treatments is leading more and more dentists to look into securing new equipment and offering new treatments for their patients. While this equipment comes at a price, it greatly benefits the practices. If you want a steady flow of patients, put in the upfront investment to ensure you have the most up-to-date equipment, guaranteeing the best patient experience possible. 

Staffing Shortages 

Finding, hiring, training, and retaining the best has always been challenging, but it is getting increasingly demanding in the dental world. Unfortunately, dentists are finding it difficult to find and hire the right people in 2024. Moreover, retaining the right people can often take time, even if you make suitable hires.

These staffing problems can eat away at the efficiency of your practice and stop you from reaching your peak functionality as a practice. Additionally, staffing problems can lead to you working more hours than you’d prefer. After all, you’re a dentist and want to spend your time taking care of patients, not answering phones and dealing with routine paperwork problems. Finding quality help is critical for you, your patients, and your dental practice if you want to reclaim your nights and weekends. 

Rising Overhead

It’s no secret that inflation has been the center of economic news over the course of the last few years. Dental supplies have not been exempt from this, and monthly economic numbers in June of 2022 showed the highest monthly rise in dental services ever recorded. 

These rising costs may result in more time spent on procurement and accounting, a specialty in which you likely are not proficient. For many dentists, the cost of inflation can be too high, and many decide to leave dentistry altogether. 

Partner With Triumphant Transition Partners

Are you a dentist working sun-up to sun-down to run your practice? Are you considering leaving dentistry or, at the very least, changing how you run your practice? Partner with Triumphant Transition Partners today!

Selling your dental practice to a dental support organization or dental partnership organization is a great way to find a viable partner, one with deep pockets and industry expertise. If you’re looking to exit dentistry, selling your practice is a great way to exit the scene, but DSOs and DPOs can also be great options for dentists who want to continue practicing.

 If you love dentistry but need some support with marketing, hiring, and procurement, an additional partner’s processes, resources, and expertise could make all the difference in the world.

However, selling and transitioning a dental practice is a challenging feat. You need qualified and rigorous industry experts in your corner when selling to ensure you don’t end up with the wrong organization. Few things can ruin your working life as much as a bad business partnership.

That’s why you must lean on the Triumphant Transitions team and guarantee that you sell your dental practice on your terms and timeline. Reach out to your friendly Triumphant advisor for a courtesy consultation on:

  • Your Practice Value
  • Our Private Buyer Network
  • Our Process
  • & More!

What Financial Documents Do I Need To Sell My Dental Practice?

by Triumphant Transition Partners

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 Transition 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 Transition 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 Transition 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 Transition Partners at the negotiating table

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