Dental Support Organizations Archives - Triumphant Partners

Tag: Dental Support Organizations

Selling Your Dental Practice in 2025: Partner with Triumphant Partners

by Triumphant Partners

Selling your dental practice is the biggest and most important sale of your life and should not be taken lightly. If you want to successfully sell your practice on your terms and within your timetable, partnering with an industry expert is critical.

Triumphant Partners is that industry expert and partner dedicated to your success. Our team understands the complexities and nuances of the dental practice market and brings that expertise to your practice transition.  Our services add a layer of expertise to the transition of any dental practice – expertise that is critical in such a competitive market. Read on to learn about the Triumphant difference! 

Industry Expertise 

Industry expertise is a prerequisite for success in the mergers and acquisitions process. This is especially true in an industry as multifaceted, regulated, and dynamic as the dental sector. A good partner in your merger and acquisition process will bring a wealth of industry knowledge that a less experienced broker lacks.  Everything from patient credits to insurance reimbursement fees to the condition of your dental practice equipment, lease terms, online presence, and tenure of the team needs to be carefully considered.

An advisor who is familiar with these nuances of the dental industry is an advisor who can help you maximize your practice value. A trusted advisor familiar with the dental industry makes the process easier for all parties and enables you to start your transition on the right foot. 

Why Choose Triumphant Transition Partners?

You have a plethora of options when you’re looking for a dental practice transition expert. However, few have the proven expertise and track record necessary for such a large, complicated merger and acquisition. Our expertise is yours to utilize to make your transition a rousing success. 

  • Market Knowledge: Our expertise begins with analyzing the dental market and our knowledge of historical and current trends within the space. This knowledge helps us utilize this industry context to find you the most qualified buyer. 
  • Buyer Relationships: By partnering with Triumphant, you receive access to a vetted network of up to 1000 qualified buyers, which helps you sell your dental practice exponentially quicker. 
  • Negotiation Support: Our team brings their experience in negotiating to your transition and helps you achieve the terms, timelines, and price points necessary to transition your dental practice. 
  • Deal Experience: Complicated deals eat up time – time you likely don’t have when trying to run a dental practice. When you partner with Triumphant, you’re partnering with an expert who can handle the small details of paperwork and legal compliance while you focus on what you do best: running your practice and moving on to the next stage in life. 

Triumphant As Your Partner

Our team works alongside you to make the process a breeze and is always 100% confidential. This helps minimize stress and sets you up for future success. Depending on your unique situation, our team will

  • Recommend partnership opportunities to improve your operations
  • Pre-screen potential buyers to ensure you’re only investing your time in serious contenders
  • Ensure compliance with legal and regulatory frameworks
  • Incorporate the expertise of industry-knowledgeable lawyers and accounts into your practice transition.  

Prepare For Success With Triumphant 

High-quality dental transition advice is an investment that appreciates over time. The right team can help you sell your dental practice on your terms and timeline and successfully safeguard your legacy. When you partner with Triumphant, you receive:

  • No Upfront Costs: We get paid when you get paid and are incentivized to make your deal a success. We only represent sellers and YOUR interests. 
  • Tailored Financial Advice: No templatized plans. We tailor our recommendations to your unique financial situation.
  • Industry Knowledge: We bring a deep and expansive knowledge of the industry and potential buyers to your deal, allowing you to tap into this market insight as your deal processes. 

With Triumphant Partners, you’re not selling a dental practice; you’re securing your future and making your next step a reality, whatever that is.  Contact us today for a free consultation on your specific needs and how Triumphant can help you achieve your goals.

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

by Triumphant 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 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 Partners today!

An Intro to Dental Partnership Organizations

by Triumphant Partners

If you’ve been in the dental community for any amount of time, you’ve likely heard about dental partnership organizations. There’s no shortage of visibility of DPOs within the dental industry, as they are a key part of business partnerships in the dental field.

You’ve likely seen them at dental conferences, received collateral from these organizations, or heard about colleagues partnering with a DPO. These organizations are a key part of the dental industry – however, you may have never done a deep dive into the concept of a DPO. If you want to learn about dental partnership organizations, you’re in the right place! These are essential questions to ask yourself when selling your dental practice. Read on to learn more about dental partnership organizations.

What is a Dental Partnership?

A dental partnership is a business arrangement where two or more dentists co-own and operate a dental practice together. This partnership can take various forms, including general partnerships, limited partnerships, professional corporations, and limited liability partnerships. Dental partnerships offer numerous benefits, such as shared financial responsibilities, increased productivity, and improved work-life balance. However, they also require careful planning, clear communication, and a well-drafted partnership agreement to ensure the success and longevity of the partnership. By pooling resources and expertise, dental professionals can create a more robust and resilient practice, capable of delivering high-quality care while managing the complexities of business operations.

Types of Dental Partnerships

There are several types of dental partnerships, each with its unique characteristics and advantages:

  1. General Partnerships: In a general partnership, each partner has an equal or proportional ownership of the dental practice. This type of partnership involves shared responsibility, meaning that if one partner makes a decision, it’s as if all partners made that decision. This collaborative approach can foster a strong sense of teamwork and mutual support among the partners involved.
  2. Limited Partnerships: A limited partnership includes both general and limited partners. General partners handle the day-to-day operations and make significant decisions for the dental practice, while limited partners invest money in the practice but do not participate in daily management or decision-making. This structure allows for financial contributions without the need for all partners to be actively involved in business operations.
  3. Professional Corporations: In a professional corporation, the dental practice becomes its own legal entity. This setup can offer benefits like protecting personal assets and providing tax advantages. Professional corporations can also facilitate smoother transitions in ownership and succession planning, making them an attractive option for many dental professionals.
  4. Limited Liability Partnerships (LLPs): An LLP offers protection from the actions of partners. In an LLP, dentists are not personally responsible for their partners’ professional mistakes or negligence. This structure provides a layer of security, allowing partners to focus on their clinical work without worrying about potential liabilities from their colleagues’ actions.
  5. Dental Service Organizations (DSOs): A DSO manages the business aspects of a dental practice, offering services like marketing, billing, and staffing. Partnering with a DSO allows dentists to remain in control of the clinical aspects of their practice while benefiting from professional management of the business side. This can lead to increased efficiency and profitability.

Benefits

A DPO or Dental Partnership Organization is merely an organization that partners with dentists to create more efficient and impactful dental practices. This partnership can take various forms, including general partnerships, limited partnerships, professional corporations, and limited liability partnerships. A limited liability partnership offers protection from the actions of partners, safeguarding personal assets from business liabilities. The how of each DPO will vary, but all DPOs work by partnering small dental practices with a broader network for more support and operational efficiency. DPOs provide a plethora of benefits for many dentists. The list below isn’t exhaustive, but it is a good overview of why many dentists partner with dental partnership organizations.

Time-Savings

By some estimates, dentists are one of, if not the most overworked professions. Small dental practice owners might be the most overworked. That’s one of the principal reasons many dentists are interested in partnering with a dental partnership organization. The opportunity to get their nights and weekends back is incredibly tantalizing to many dentists. All the administrative tasks involved in running a dental practice can be subsumed by the Dental Partnership Organization, allowing the dentist in question to focus on patient care. 

Financial Gain for Dental Practices

Working with a DPO can also help you grow your practice. The balancing act between being a healthcare provider and a business owner is one that many dentists struggle with. By bringing on an experienced DPO, you’re better poised to invest in marketing, find ways to increase profit margin, retain customers, and provide better service. Plus, you’ll likely keep a seat at the table regarding business operations. As a partner within your practice, you’ll be supported by the DPO’s expertise but will also retain some degree of ownership in the direction and profits of the practice. Clear profit-sharing arrangements can help ensure transparent and equitable financial management within the practice. That’s an excellent place for many dentists to be.

Upskilling for Dental Professionals

If you’re a dentist looking to further your education and career, a dental partnership organization can help better connect you with your peers and the industry. Access to these conferences provides many dentists with continuing education and a network of colleagues. Depending on the organization, you might have access to funding for certain continuing education pursuits. 

Economies of Scale & Access to Resources

Running a dental practice as a solo practitioner has its perks, but it also comes with drawbacks. One of those drawbacks is the cost-prohibitiveness of being a small business owner. On the other hand, dental partnership organizations have extensive experience supporting practices nationwide. This expertise proves invaluable when looking to support your dental practice better. By partnering with a DPO, you can access more capital to better staff and equip your practice and efficient economies of scale for procurement. This partnership also facilitates collaboration among dentists and other dental professionals, allowing for shared resources and knowledge.

Important Aspects of a Dental Partnership Agreement

A dental partnership agreement is a crucial document that outlines the terms and conditions of the partnership. Important aspects of a dental partnership agreement include:

  1. Membership Interest: The value paid for the interest should not be the full amount paid for the practice. This ensures that the financial contributions of each partner are fairly represented and that the partnership remains equitable.
  2. Purchase Price: The purchase price is generally split between a small amount for the interest upfront and the balance to be paid as deferred compensation to the seller. This structure helps manage cash flow and ensures that the seller remains invested in the success of the practice during the transition period.
  3. Warranties and Hold-Harmless Provisions: These provisions protect the partners from potential liabilities. They ensure that each partner is safeguarded against unforeseen issues that may arise from the actions or omissions of other partners.
  4. Employment Agreements: Each partner should have a new employment agreement that outlines their compensation, benefits, responsibilities, and hours of employment. Clear employment agreements help prevent misunderstandings and ensure that all partners are on the same page regarding their roles and expectations.
  5. Asset Definition: The partnership agreement should clearly define what assets are considered to be assets of the partnership. This clarity helps avoid disputes and ensures that all partners understand what is included in the partnership’s assets.
  6. Valuation of Assets: The valuation of assets should be tied to the individual production of each owner. This approach ensures that the value of the partnership reflects the contributions of each partner, promoting fairness and transparency.
  7. Profit Splits: Profit splits are typically based on production, but profits are split by ownership. This method aligns the financial rewards with the contributions of each partner, incentivizing productivity and collaboration.
  8. Expense Splits: Expenses may be split by production, but rent and other facility-related expenses are often split equally. This arrangement ensures that all partners share the costs of maintaining the practice, promoting a sense of shared responsibility.
  9. Letter of Intent (LOI): An LOI should be established to outline the preliminary terms of a buy-in/buyout situation. This document serves as a roadmap for the transition process, providing a clear framework for negotiations and ensuring that all parties understand the terms of the agreement.

By understanding the different types of dental partnerships and the important aspects of a dental partnership agreement, dentists can make informed decisions and create a successful and sustainable partnership that benefits all parties involved.

Process and Business Operations

Do you love dentistry but find yourself spending most of your time tending to the non-dentistry elements of running a dental practice? Do procurement, marketing, HR, and general administrative tasks take up countless hours of your day? If so, a dental partnership organization might be an excellent fit for you! If you’re considering partnering with a DPO, they likely have extensive experience templating and coordinating all the humdrum elements of business ownership you don’t enjoy. The amount of process a DPO brings to your practice is quite freeing for dentists trying to wear multiple hats independently. 

Call Your Triumphant Transition Dental Partnerships Advisor Today!

Are you considering selling your dental practice? Do you need help understanding your practice’s value, potential options, and closing the deal? If so, call your friendly Triumphant Transition advisor for a courtesy consultation!

How to Sell Your Dental Practice In 2024

by Triumphant 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 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 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!

6 More Questions to Ask a DSO

by Triumphant 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 Partners has years of industry experience to provide. We recommend consulting the questions contained below. If you do your job right, you can successfully screen potential DSOs using these questions to ensure you only entertain the best dental practice offers. Read on to learn more! 

What Are the Terms of Staying On?

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

Who Makes Business Decisions?

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

What Does Compensation Look Like?

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

What Changes Will I See? 

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

What Do Other Dentists Think about Your Organization? 

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

What Can You Provide?

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

Navigating the Sale Process

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

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

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

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

Dental Industry 2024 Forecast

by Triumphant 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 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 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!

3 Reasons Your Dental Practice Might Be Undervalued

by Triumphant Partners

When you want to sell your dental practice to a dental support organization, few things are as important as knowing what your practice is worth. If your dental practice is undervalued, you can easily end up selling your dental practice to a dental support organization at less-than-ideal terms. 

Your practice must be adequately assessed and valued for optimal outcomes. However, too many dentists don’t fully understand the value of their practice. This can lead to their acceptance of offers they otherwise wouldn’t entertain. 

To combat this, we put together a few reasons why practices are undervalued when appraised. Knowledge is power; the more you understand the dollar value of your dental practice, the better equipped you are to sell at a fair price! 

1. The Assessor Is Motivated

Many practices receive offers from dental support organizations directly. If you’re a busy dentist trying to tackle all of the operational and administrative tasks in your day, you might be tempted by these offers. You might even look at the quoted dollar figure and think the offer in question might be worthwhile. This might be a good option if you’re looking to sell and are struggling to fit everything you need into your workweek.

However, it is worth remembering that many dental support organizations are motivated when they make an offer. If you are receiving a quote directly from a DSO or DPO, you likely are not receiving the best offer. And why would you? The DSO or DPO in question wants to offer you an offer that will entice you to commit, not the best possible offer. They’re representing their interests, not your own. If you are a dentist receiving an offer from a DSO or DPO, obtain a second appraisal for the best results. 

2. An Outdated or Irrelevant Assessment Was Used

You may have done your homework and received a second practice evaluation. That’s a good step and a great tactic to ensure you’re getting the best possible terms. However, knowing what method was used when your practice was evaluated is essential. You might not be familiar with the standard methods for evaluating a dental practice, but a cursory knowledge of common dental practice evaluation paradigms will take you far. 

Different practice evaluation methods can influence the total dollar value associated with your practice. Let’s say your practice is evaluated head to head versus others in your market. This look, which compares your value to the value of similar companies in your geographic area, could be helpful in understanding your practice’s value. 

However, let’s say you have a better online reputation, patient base or some external factor that makes you a stronger practice than a direct competitor. This market-based evaluation might not accurately assess your business. A custom practice evaluation is in order to make sure that your practice is properly measured. 

Inversely, focusing on past collections may not let you understand the actual financial health of your practice. If your assessor uses the wrong practice evaluation method, you might not have a truly accurate picture of your practice’s value. This could result in your acceptance of a less-than-ideal offer from a dental support organization. Be sure you understand the methods used when an outside party evaluates your practice’s value. 

3. You Never Were Given Your EBITDA 

If you want to sell your dental practice to a dental support organization, you must fully understand your practice’s EBITDA. Earnings before interest, taxes, depreciation, and amortization (EBITDA) is a tried-and-true method for evaluating the profitability of a business. Comparing businesses head-to-head is difficult. This is especially true with dental practices. 

Any two practices could have completely different client bases, cash flows, future earnings, markets, and asset portfolios. EBITDA helps strip away all of the external noise and focus on the core profitability of a dental practice. If you have not received an EBITDA quote, request one ASAP. Selling to a quality DSO without understanding your practice EBITDA will be tough. Get ahead of this and get a fully comprehensive practice evaluation. 

It is worth noting that many DSOs and DPOs will offer an EBITDA assessment, but they are usually motivated to underquote. Accepting their valuation of your practice at face value is bringing a knife to a gunfight; you’re just out of your element and you’re likely to accept a lower offer than you would normally. A dental broker can help you work alongside a specifically trained CPA to get an accurate EBITDA to help counteract lowball DSO and DPO offers. 

Call Triumphant Partners Today! 

Are you a dentist looking to sell your practice to a dental support organization? Contact Triumphant Partners today! Selling a dental practice is challenging, and many dentists can be overwhelmed by the process. If this is you, partner with a qualified dental broker to represent your interests in the practice sale process.

Partnering with Triumphant Partners will:

  • Equip Your Attorneys with Relevant Data
  • Grant You Access to Our Qualified Buyers Network
  • Give You Consultative Insight Through the Process
  • Help You Understand Your Practice’s Value for Optimal Offer Values

Contact Your Friendly Triumphant Advisor for a Courtesy Consultation Today!

4 Questions to Ask a Dental Support Organization

by Triumphant Partners

You likely have many questions if you’re contemplating selling your dental practice to a dental support organization. The decision to sell your dental practice is a big career move and can pay big dividends for your career. 

However, not all dental support organizations are equal, and we encourage you to consult with multiple dental support organizations as you weigh selling. Transitioning your practice is a big decision, and you want to ensure you have the right buyer before you lock yourself into the biggest deal of your professional life.

As dental brokers, we’ve spent a lot of time consulting with dentists and dental support organizations and have unique insight into the goals and needs of each. To help you decide, we recommend asking your dental support organization these questions. 

What Changes Can I Expect to See?

Dental support organizations support dentists who want their nights and weekends back. However, this often comes with a tradeoff. You might not be responsible for every facet of your practice anymore, but that comes with a partner who will weigh in on decision-making and have processes for calls that used to be yours. 

You must ask any prospective dental support organization partner how your practice will change. This will vary from DSO to DSO, but be prepared to understand:

  • Will my staff stay on?
  • Will practice software change?
  • Will my practice be rebranded?
  • What does supplying the practice look like? 
  • Will my feedback be taken into consideration when addressing potential changes? 

Will I Need to Stay On for a Certain Period of Time? 

Some DSOs expect the seller to stay on for a few months while the practice transitions. Others are flexible about whether the dentist needs to stay on and might be a good fit for a dentist looking to make a quick exit. Other dental support organizations are open for longer-term commitments where the seller stays on as a practicing dentist for an extended period.

Whatever your unique situation, there’s a dental support organization for you. However, it is imperative to understand the terms of the deal before you make any commitments. If you expect to leave dentistry as soon as possible for another venture, nothing is as debilitating as needing to stay and help transition the practice for a few months. Be sure to ask up front to understand if this potential dental support organization is a viable partner. 

Be sure to ask:

  • Will I need to stay on post-close?
  • What does compensation look like post-close?
  • What would my responsibilities be post-close? 

What Are the Terms?

Dental transitions can be complicated, and you need to understand the terms of your deal before you make any commitments. Contracts can be structured in very different ways, so don’t assume anything, and be sure to ask the DSO.

  • Is the purchase price paid out in cash?
  • Will part of the deal be stock?
  • Is there an earn-out clause? 
  • If work is required post-close, what does compensation look like?
  • Are elements of the deal based on performance? 

What Would Others Say?

If you’re considering selling, see if the DSO has testimonials from other dentists. Selling your practice is a big decision; you want to ensure you choose the right partner. If possible, get in contact with past sellers and ask:

  • Did the DSO hold up its end of the deal?
  • How was the transition process? 
  • What changed about the practice post-sale?
  • Have past sellers retained their autonomy? 

Protect Your Interests with a Dental Broker

These questions are great to have on hand when fielding inquiries from dental support organizations. However, first-hand insight and knowledge of the dental support organization’s history is invaluable, and that’s one of the many reasons dentists consider partnering with a dental broker. 

The right dental broker can significantly help as you attempt to qualify dental support organizations. An excellent dental broker is only there to represent the seller’s interests and will have industry knowledge about whether any given DSO is a good fit. The right dental broker will also have access to industry contacts you can consult with if needed. 

That’s where Triumphant Partners enters the picture!

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 and data
  • Negotiate the final sale on your terms and price

Contact Triumphant Transition Advisors for Your Courtesy Consultation!

5 Ways Dentists Can Free Up Time

by Triumphant Partners

If you’re a dentist, you are probably always asking yourself how you can save time when practicing. It’s an important question; many dentists find themselves inundated with patient work, administrative upkeep, business strategy, and a slew of other job responsibilities. The consequences of these time constraints can be massive. If you can’t free up time to focus on what you most want to do, your career satisfaction will take a hit. 

If you’re struggling with finding free time as a dentist, rest assured that you are not the only one struggling. Read on to learn more about how to free up more time!

Reduce Administrative Upkeep

You went to dental school because you loved dentistry and wanted to care for your patients’ dental health. That’s a very admirable goal. However, if you’re in private practice, you likely spend much of your time tending to the non-dentistry portion of your dental practice. Hiring, purchasing supplies, balancing the books, marketing, and other administrative tasks likely take up a significant chunk of your time. These tasks are crucial to the operation of your practice, but many dentists are unprepared to tackle these tasks. As a result, they find their time spent on administrative duties. 

These administrative duties are critical to running the practice, but they’ll eat away at your nights and weekends if you aren’t careful. These additional duties are a major contributing factor to the  high burnout rates among dentists today. By some estimates, 50% of dentists struggle with burnout. 

Hire & Train The Right People

If you’ve ever been on a sports team, you likely already know just how crucial collaboration can be. One team excelling can make another team that much more efficient. A great support staff can make you more impactful, much like how you had your best JV football games when your offensive line played well. 

However, the right dental assistants, front staff, and practice managers don’t just pop into existence. You’ll need to find and hire them, or if you can’t find and hire the A team, train up your current staff to grow into the support staff you need. That may require extra work, but it’s worth it. A good support staff can revolutionize your practice and improve your career satisfaction. 

Focus On What Matters

This is an excellent rule for anyone struggling to keep their to-do list manageable. As a dentist in private practice, your responsibilities are myriad. You likely are a high performer, and it can be tempting to “do it all,” but if you aren’t careful, you can find yourself sinking valuable time into things you don’t particularly like or need to do. 

Prioritizing patient care when you have other duties as a small business owner can be difficult. You might want to spend more time with patients but still need to pay bills, order supplies, and deal with staffing, marketing, and tech problems. Finding the right balance as a dentist/small business owner can be challenging, but it is possible. See our next bullet point for more! 

Clean-Up Processes 

A good business process adds structure to your day and helps keep the practice staff and business goals on track. A poorly designed business process adds unnecessary work and might increase the odds of burnout for you and your team.

Consequently, you must evaluate your current processes and see where to optimize. Minor tweaks to your patient reminder process or procurement orders can significantly impact the time needed to run your practice. 

Consider the impact of increasing your patient retention rate. Let’s say you retain 60% of all first-time patients as repeat patients. Increasing that retention rate to 80% has a massive impact on your bottom line and overall profitability, and changes in how you do patient outreach via text and email could help drive that sort of increase. Likewise, increasing the percentage of time spent on a type of patient you like treating could help increase practice collections without increasing the amount of operational effort. Minor tweaks to processes can help get you there, but you need to find the right process consultant to help you make those changes. 

Partner With A Dental Support Organization

If you’re a dentist looking to be more efficient, partnering with a dental support organization might be a great call. These organizations are specifically suited to aid in the management and operational improvement of a dental practice, so many dentists partner with these organizations to do just that. After all, you’re a dentist and an expert in clinical care. 

However, you’re likely not an expert in business management, and even if you were, you still need to focus on your patient base. A well-vetted dental support organization will provide additional resources, proven methods of improving your practice, and access to a larger organization. 

The right dental support organization can help you with…

  • IT Infrastructure
  • Hiring & Staffing
  • Procurement
  • Continuing Education
  • Marketing & Practice Growth
  • Compliance & Regulation
  • Process Innovation 
  • & More

However, it is worth stressing one word: right. The right dental support organization can be a partner who helps you increase your profitability and get time back. The wrong dental support organization could actually decrease your work satisfaction. Many dentists sign on with dental support organizations and are shocked when they realize their control over practice decision-making is changed with a new partner. Others cannot sell their practice at the best possible price or struggle to achieve mutually beneficial terms in the closing process with the dental support organization. 

That’s why you must contact Triumphant Partners and find out if a dental support organization is right for you! 

As your dental broker, we will….

  • Help You Understand The Value Of Your Practice
  • Show You Qualified Buyers From Our Private Buyers Network
  • Represent You Through The Process
  • Equip Your Attorneys With Relevant Practice Evaluation To Get You The Best Terms Possible!

Contact Your Trusted Triumphant Transition Advisor for a Courtesy Consultation!

3 Common Misconceptions About Dental Support Organizations

by Triumphant Partners

You have likely heard a lot about dental support organizations if you’re a dentist. 

How could you not have? 

Many of these organizations are active across the US and Canada, and they’re often highly visible at any dental conference or in industry news. These organizations can benefit any dentist looking to jump to the next step in their career, and you probably know many dental colleagues who have contracted with DSOs. You may have considered the same for your practice. 

However, as dental brokers, addressing some common misconceptions about dental support organizations is essential. These organizations can supercharge your dental career, but these misconceptions must be put to rest before you partner with a dental support organization. As dental brokers, we have deep and rich relationships across the dental industry and wanted to share our expertise on dental support organizations.

Read on to Learn More!

Why You Might Partner With a DSO

First, let’s clarify: A dental support organization can significantly help many dentists. The simple fact is that many dentists are incredibly busy and need help to run their practices more effectively. Many dentists’ are on an island, and DSOs offer a tremendous dental community support system that is doctor-centric and typically doctor-led. 

A dental support organization (DSO) or dental partnership organization (DPO) is an organization that provides non-clinical business and operational services to a dentist, freeing up the dentist to more effectively care for their patient base. 

There are so many ways that dentists and dental support organizations can set up these agreements, but generally, an excellent dental support organization could assist with:

• General Administrative Services

• Human Resources and Staffing

• Payroll and Billing

• Insurance Coding and Insurance Services Liaison

• Advertising and Marketing Services

• IT Services 

• Building and Facilities Management Services

• Procurement Services 

• Accounting Services

• Regulatory Compliance

A dental support organization can revolutionize your career. However, while the above benefits are helpful, we still think it’s important to highlight three common misconceptions about dental support organizations that must be dispelled. 

Misconception: DSOs Are for Retiring Dentists

Many dentists sell their practice near the end of their career. It’s easy to see why. Selling a practice is a great way to transition into retirement, and many dentists are familiar with dental support organizations entering the picture at the end of a dentist’s career. 

While this is a common use of dental support organizations, we’d be remiss if we didn’t point out several other benefits of dental support organizations. Many dentists might sell their practice as an exit strategy from dentistry and use the funds gained from the sale of their practice to pivot to another vocation. Selling to a dental support organization is a viable option for early to mid-career dentists ready to say goodbye to the administrative part of dentistry and focus on the clinical or growth side of their dental practice. 

It’s also worth reminding the dentists out there that many dentists elect to stay on after the sale of their dental practice. It breathes new life and extends one’s career once they partner with the support they gain, and the incremental wealth built by partnering. It also gives an exit strategy, young or old, whether five or 25 years, out to a doctor, especially when they have built a great practice that the average dentist cannot afford. When you achieve a certain level of revenue and growth, it is challenging to find a confident buyer or doctor to sell to and that can take on this type of undertaking. This is a very common dental support organization arrangement. If you love dentistry, partnering with a dental support organization can free up your time to focus on patient care. The dental support organization has the resources and operational expertise to focus on business management and can simplify your practice and improve your quality of life. This often increases your income while decreasing the amount of administrative work you need to do. That can be a win for all parties involved! 

Misconception: DSOs Are Always the Right Call

We have seen and worked with countless dental support organizations and + dentist partnerships, leading to tremendous benefits for both. However, any dentist looking to contract with a DSO must find the right partnership for their unique needs and circumstances. There are thousands of dental support organizations, each with its unique core offering, specialty, and value proposition. You could be setting yourself up for failure if you do not consider each dental support organization against your own unique needs. You also need to know what the deal terms mean and how it benefits you in the short and long term. You do not know what you do not know, and we equate it to taking a knife to a gunfight. The devil is always in the details.

Let’s say you intend to stay on as a dentist and want the operational aid support of a dental support organization. You must understand what degree of input you will have in the practice regarding various operational decisions such as hiring, procurement, and marketing. Some DSOs prefer to handle all operational decisions with a templated method, which could mean that you’re left without much control of the practice, aside from clinical decisions. However, other dental support organizations are much more flexible and willing to customize transition plans accordingly to ensure you retain input into important decisions. They want a true partner where you have as much control as you desire, and they are there to support you as much or as little as you wish in the areas in which you need support. They want to align with the right doctor and encourage you to remain the leader in the practice.  The moral of the story here is that not all dental support organizations suit every situation, and how do you know which is the right one for your short and long-term aspirations? 

DSO Initial Offers Are Non-Negotiable 

You’re probably thrilled if you’ve received an offer from a dental support organization! After all, if a dental support organization has reached out to you with an offer, it’s an honest and accurate gauge of your practice’s value. 

Well, not always. Many dental support organizations have teams that reach out to dentists to entice them to sell. They spend hundreds of thousands of dollars on direct marketing, business development team representatives, and paying their own partner doctors significant referral fees to entice you to sell to them directly without representation. You need to know precisely what the deal terms and valuation mean. The adage of them wanting to buy low, sell high. The offers extended from these teams are often lower than what the dentist might receive if fielding multiple offers from qualified buyers. If you have received such an offer from a dental support organization, that’s great! It’s a sign that your practice is valuable and that you should consider every possible offer before selling. 

That’s why it’s so essential that you have industry-knowledgeable representation in the form of a dental broker with you as you sell your dental practice! The right dental broker will help you increase the value of your practice, expedite the sale of your practice, increase the number of interested buyers, generate more interest than you can alone, have an entire auction/bidding process, and equip you with the best terms and highest valuation. A dental broker represents your interest, while a DSO represents their interests. 

At TTP, we offer….

  • Unique Sell-Side Advisory With Buy-Side Experience
  • Detailed Discovery, Practice Valuation & Review
  • Access to Our Private Buyer and DSO Network
  • Management of Letters of Intent and Buyer Screening 
  • Offer Qualification & Representation Through Close
  • We represent your interest
  • We custom-tailor every transition to meet our vast array of clients’ specific needs
  • Negotiate the best deal terms for YOU
  • Create a competitive bidding process

You have put too much time into your dental practice to sell to the wrong dental support organization or with the wrong price or terms. Partner with a top dental broker and call Triumphant Partners today!

Get Your Courtesy Consultation Today & Call Now!