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!