Selling to a DSO vs Private Buyer

If you’re considering selling your practice, you’re naturally excited about the process. Selling your dental practice is a huge step for most dentists and one of the most critical transitions in your life. The sale of your practice offers you many opportunities and, if done correctly, can be an excellent springboard into another career, business venture, or stage of life. 

However, selling your practice isn’t always straightforward and can frustrate many dentists. What’s more, the decision to sell to a dental support organization (DSO), dental partnership organization (DPO), or a private buyer is a critical one to consider. Each potential buyer offers unique benefits and disadvantages and may be better suited to specific practice goals. Knowing the pros and cons of selling a dental practice to a DSO or a private buyer is paramount as you continue to explore selling your private practice. 

The experts at Triumphant Transition Partners have a quick run-through of the pros and cons of selling to a DSO or private buyer to help you make an informed decision. To help you think through your goals, we’ve developed this blog as a series of questions to ask yourself along the way. Ask yourself these questions and consider which option seems to be the best for your specific situation. Read on to learn more! 

Do I Want To Stay at the Practice?

Consider whether you want to stay at your practice as you contemplate selling. Many dentists love dentistry but find themselves overwhelmed by the sheer number of tasks and duties they need to handle as a dentist. For these dentists, patient care is rewarding and fulfilling, but responsibilities like payroll, procurement, hiring, and marketing eat into their free time. Soon, these dentists find themselves working overtime just to manage their practice and increasing their odds of burning out as they do. 

Selling to a dental support organization makes the most sense for these dentists. DSOs have put time and resources into developing the processes, systems, and playbooks to streamline the operational efficiency of any practice. Adding a dental support organization thus means that the dentists in question can focus on their patient care and leave the operational items to the DSO. If you’re a dentist looking to stay at your practice, a dental support organization makes a lot of sense and could be a great way to advance your work-life satisfaction. 

Do I Want to Leave?

Is your end goal leaving the practice of dentistry? Maybe you want to pivot to another field, but dentistry isn’t in the cards for you at this point. If this describes your situation, the right dental support organization or private buyer could be a good fit. It will really depend on your ability to assess your unique situation. Private buyers are not confined by a dental support organization’s policies and best practices, and many dentists find it easier to sell to these persons and entities. Often, a DSO or DPO will have a much cleaner process for transitioning a dental practice, and many dentists enjoy knowing that their staff and patients are in good hands. 

It’s also important to consider whether or not you’re looking to completely walk away from your practice post-sale. If you’re looking to leave your dental practice, relocate, or retire, then a private buyer is typically going to be in your best interest. Why? A DSO/DPO will expect a certain time commitment from you post-sale, while a private buyer transition will have little to no restrictions in place for staying on at the practice. 

Do I Have a Specific Goal to Fund? 

Many dentists view the sale of their practice as the first step towards a financially profitable future. If you have a specific goal you wish to fund with the sale of your practice, your selling process will look different. Maybe you want to retire. Perhaps you want to put the proceeds towards a new business venture. Regardless of your specific goals, selling to the right private buyer or DSO is critical. 

A private buyer could be the right fit if you have a specific potential buyer you’re considering, like another dentist or one of your practice’s associates. And even if you don’t have a particular dentist in mind, our team can help you find the perfect private buyer for your practice.

Inversely, many DSOs and DPOs have larger budgets, so if you’re looking to maximize the sale of your practice, a DSO or DPO could net you a higher offer. Regardless of whether you choose to sell to a private buyer of DSO/DPO, Triumphant Transition Partners can help you find the right buyer for your unique situation. 

Contact Triumphant Transition Partners

Selling a dental practice is hard, but working with Triumphant Transition Partners is easy. There are a lot of essential questions to ask yourself as you navigate the selling process, and one of the most important is the value of your practice. Without a clear understanding of the profitability of your practice, expressed as your Earnings Before Interest, Taxes, Depreciation, and Amortization, you’re running the risk of undervaluing your practice and leaving money on the table. 

Reach out to Triumphant Transition Partners today for a courtesy consultation to assess the profitability of your practice. Working with Triumphant Transition Partners also gives you access to our exclusive private buyers’ network, giving you more qualified buyers to select from. Call Triumphant Transition Partners today! 

You Want To Sell Your Med Spa…. Now What?

Selling a business is a difficult decision for many business owners. You’ve poured so much sweat equity into your business that the decision to sell can be tough. 

However, it can also be an exciting time, and you’re likely filled with anticipation and wonder about the future. Selling a med spa is no different. If you’ve decided to sell your med spa, you likely have questions about what your next steps are and may even be a little confused. To help you understand your next steps, Triumphant Transition Partners shares what you need to do now that you intend to sell your med spa. 

Think Through Your Goals

Your own unique goals are a pivotal first step in this process. Med spas are not a monolith; the art of selling one isn’t either, but far too many business owners try to sell their business based on generic advice instead of their own unique goals. 

Let’s say two med spa owners are looking to sell. Let’s even go further and say, for the sake of simplicity, that both spas are in the same town and are essentially mirror images of each other. The only difference is the reason for the sale. One owner wants to sell to fund their retirement and has no plans to stay on and practice after the sale. The owner of the second spa, however, is younger and wants to stay on to practice, just with the additional support and operational expertise of a larger company in the wings. 

These identical spa owners should be thinking about different challenges associated with the selling process despite their businesses being precisely the same otherwise. The older owner will want to focus on asking price and speed of sale. The younger owner will likely be more interested in finding the right fit for their unique needs as a med spa owner. 

Take the time to think through your unique goals and needs, and then move forward with the sale. This additional planning will help you find the right fit for your unique needs and make the selling process far more rewarding. 

Understand Your Value

Once you have your specific goals written down, move on to understanding what your med spa is worth. A fair evaluation of your business is the foundation for the rest of the deal process. If you have no estimate of what you could ask for your spa, you’ll likely accept any deal and waste a lot of time looking at unserious buyers.  If you have an estimate that is too high, you’re wasting time searching for an offer that will never come. If you have too low an idea, you’re leaving money on the table and might seriously undervalue your practice. 

While there are numerous ways to evaluate a business’s profitability, we recommend beginning with your med spa’s EBITDA or Earnings Before Interest, Taxes, Depreciation, and Amortization. This critical financial metric helps you understand your core profitability after all other obligations are met. If you have no idea what your med spa is worth, contact our team for a courtesy consultation! 

Find Your Advisor

Once you understand what your med spa is worth, it’s time to find a trusted advisor. Selling a business is a challenging endeavor and one that can be complicated. A transition advisor is a key support mechanism that helps you navigate all the challenges of selling a business. Their end goal is to ensure you and your attorneys have what you need to help sell your business on your terms and at your price. 

Complex practice sales and transitions are complicate. A trusted advisor enables you to estimate the asking price of your spa, accept and review offers, find potential buyers, and navigate to close. The right practice transition partner will increase the asking price of your spa and help you close with fewer hiccups and a more pleasant experience. 

Contact Triumphant Transition Partners 

Are you ready to sell your med spa and move on to the next stage of your professional life, whatever that may be for your use case? Reach out to your trusted Triumphant advisor for a courtesy consultation. We go the extra mile for our clients to help them reach their goals and are standing by to help you do the same! Contact us for:

  • A Custom Practice Evaluation
  • Access To Our Private Buyer Network
  • A Custom Consultation On Your Goals
  • & More!

4 Things To Know When Selling a Med Spa

Selling your med spa is a scary and exciting time in anyone’s career. You’ve put a lot of time, sweat, and tears into your med spa, and the decision to separate likely isn’t easy. 

However, you are also probably a little excited to sell your med spa. These feelings are completely normal and a part of the process of selling a med spa. 

Still, there are a few basics of selling a med spa to be aware of as you begin fielding offers. Without the correct information at hand, you could end up selling your med spa for less than its worth or, even worse, sell to a buyer who doesn’t align with your strategic goals. The team here at Triumphant Transition Partners has a few tidbits of knowledge to be aware of as you consider selling your med spa. Read on to learn more! 

You’ll Need an Accurate Assessment 

Assessing your med spa is one of the most essential steps in the process. It’s challenging to sell your med spa without knowing what it’s worth! The assessment is thus the bedrock on which the rest of the process rests. Unfortunately, it can also be one of the more challenging parts of the process. 

Part of this is just due to the intricacies of evaluating a business. No two businesses are the same, but assessing a med spa attempts to compare it to other comparable companies and determine its value relative to those businesses. That can be a daunting task. We recommend focusing on your EBITDA or Earnings Before Interest Taxes, Depreciation, and Amortization. This view focuses on the core profitability of a business after debt and other obligations are met. This financial assessment is excellent for those looking to sell their businesses. 

EBITDA is a financial paradigm that cuts all variables out, whether size, employee number, industry, or geolocation, and focuses on profitability. EBITDA isn’t an exhaustive financial analysis but offers unique benefits. 

Let’s say you’re comparing two med spas head-to-head and see that one is well-established and has a much larger client base. This spa looks to be a better investment at face value, right? However, let’s say you learn after further financial analysis that the smaller spa is actually more profitable due to a larger debt burden at the first spa. This is why an accurate financial assessment is so important. Only by understanding the EBITDA of your business can you determine a fair asking price.

What Type of Med Spa Are You Marketing?

While you likely already know what type of med spa you are operating, it’s still important to take a deep dive into the services you offer to properly market your med spa to sell and attract the best potential buyers.

For example, are you an RN or a Plastic Surgeon? How does this impact your bottom line? What services do you offer, and what are your primary sources of revenue? Injectables like lip fillers, Botox, cool sculpting, lasers, chemical peeling, and micro-needling are great examples of services that clients return to the med spa for regularly, generating solid repeat revenue. Over-the-counter products can also be a great way to boost sales and something to take into account when looking to sell your med spa. Additionally, if you want to increase revenue before the sale, consider implementing a membership program. This can provide a consistent and recurring revenue stream, enhancing your value and piquing buyers’ interest. 

Buyer’s Network

You have a baseline understanding of your practice’s value and are now taking your med spa onto the market. Now, putting your med spa on the market is a significant step, but it can come with challenges. There are only so many interested buyers on the market. Posting your med spa out as a listing might end up with you receiving a lot of traffic and attention but not many genuine buyers.

A qualified private buyer’s network, curated and maintained by a trusted partner, is a great way to ensure you’re putting your med spa in front of potential buyers. Your transition partner, if worth their salt, has a list of trusted and interested buyers on hand and might provide you access to this list of private buyers. This “pre-screened list” of buyers is a win-win for all involved. The buyer gets early access to tantalizing med spas like yours for potential early offers, the transition partner has a list of pre-vetted buyers to expedite the sale, and you have access to a list of interested clients. It’s a great deal for all involved!

Qualify Offers

You’re at the stage of the sale process where you’re receiving offers. Congratulations! This might be a heady experience, but it’s important to take a step back and begin to assess those offers. See, not every offer you receive for your med spa will be a keeper. 

Some may be low-balls. Some might not align with your strategic goals for your life after the sale of your med spa. Some buyers might have opinions about the direction of your med spa that you are opposed to. That’s why you must establish a system for qualifying each offer to ensure that you’re only putting time and energy into the most profitable and compelling offers. A clear-cut vision of your goal for sale and an idea of what your med spa is worth will help you discern which offers are worth pursuing and which are not worth investing more time into. 

You’ll Need Support

Selling a business as a small business owner is tough. You’re busy as is, and now you’re trying to sell your business successfully. You’ll need support to sell your med spa for the best price on your terms. The right partner can help you equip your attorneys with the proper paperwork to successfully negotiate your deal on your terms. Without that support, you risk leaving money on the table when selling your med spa. 

That’s why you need to contact Triumphant Transition Partners!

We’ve been facilitating significant business transitions for years and are here to help you sell your spa on your terms and at your price. We are here to help you understand what your business is worth and then work to arm your attorneys with relevant information to drive a successful negotiation! A successful practice or spa transition begins with a helpful courtesy consultation from your Triumphant advisor; reach out for your free consultation today! 

What Type of Med Spa Are You Marketing?

While you likely already know what type of med spa you are operating, it’s still important to take a deep dive into the services you offer to properly market your med spa to sell and attract the best potential buyers.

For example, are you an RN or a Plastic Surgeon? How does this impact your bottom line? What services do you offer, and what are your primary sources of revenue? Injectables like lip fillers, Botox, cool sculpting, lasers, chemical peeling, and micro-needling are great examples of services that clients return to the med spa for regularly, generating solid repeat revenue. Over-the-counter products can also be a great way to boost sales and something to take into account when looking to sell your med spa. Additionally, if you want to increase revenue before the sale, consider implementing a membership program. This can provide a consistent and recurring revenue stream, enhancing your value and piquing buyers’ interest.