You've been building your practice (and your greatest financial ASSET) for the past 10, 20, 30+ years....
You may be surprised to hear the following:
- 88% of us, as dentists, are relying on the $$$ from the eventual sale of their practices for retirement
- 80% of dentists are significantly UNDERVALUING what their practice is worth (the opposite was true just 5 years ago) – this can mean tens or hundreds of thousands (possibly millions) of dollars!
- Practices are worth more RIGHT NOW than ever before! Many dentists are still being told that their practices are worth a % (less than 100 -- usually 70-80% of one year collections -- which is NOT TRUE!!!)
- Dentists usually SELL their practices 5-7 years later than they should!
- 25-26% of U.S. dental practices are now affiliated with a DSO/group
- There are 2500+ DSO companies (from 5 to 1000+ locations in size)
- Another 45,000 practices will affiliate with DSOs in the next 2-4 years!
- YET… only 12% of dentists can name 5+ DSOs/groups
- 60% of dentists will be retiring in the next 8-10 years.
Our surveys with fellow dentists clearly show that the larger and more successful the practice, the harder and more time-intensive it is to manage/administrate it. Regulations are up, overhead is going up, HR, marketing, HIPAA, insurance, marketing, etc. -- and so maintaining practice growth is becoming more and more challenging. Bottom line is...most of us, as dentists, are TIRED of doing it!
THE OVERWHELMING MAJORITY OF DENTISTS SAY THEY JUST WANT TO DO DENTISTRY! (Yes, of course!).
Here's another thing to consider -- many higher revenue practice owners are thinking "we'll sell the practice to our associate or to another outside individual dentist when we start to slow down" -- Ok, yes, that's the way it's BEEN DONE in the past number of decades. The challenge? There are several actually, BUT the main one often is that it's becoming harder and harder for dentists to get the financing they need from the lenders -- especially now since practice values have (as they should) gone up, and lenders are still "stuck" on only (if they approve at all) offering $$$ based on "outdated" practice value formulas. Which means two things -- you probably won't get anywhere NEAR the amount you would (get if you were to affiliate with a group/DSO) and even if you agree on a solid price and the associate/outside dentist gets SOME financing you may have to "hold notes" for the difference (and some of you don't / won't want to do that).
Once you are past "peak" value, and even slow down a slight bit, your practice value goes way down. Plus...as we mentioned earlier, TIMING is very important. Even if your practice collections stay stabile/consistent, the multiples (of the adjusted cash flow -- EBITDA -- of the practice) being offered in the future (even 1 year from now) may be lower than they are right now
- You could get an ACCURATE and OBJECTIVE understanding of what your practice is WORTH? (at a modest cost to you) AND...not only that, only that, but RECEIVE TWO reports back -- one which shows the value should an individual dentist buy or buy-in, and the other which shows what the value might be to a DSO/group (so you can compare the difference and reasoning behind it)
2. Learn more about WHAT YOUR OPTIONS are -- whether that be to continue to grow your practice (and what to focus on to maximize future value), consider selling to an associate or "outside" dentist, or consider affiliating with a group.
3. Should a group/DSO be the best option for you, we would, as colleagues, experienced transitions advisors, and as a Certified Business Intermediary (CBI), help by reviewing with you which of the groups would the best fit for your practice (culturally, clinically and philosophically). We would introduce you to the "right" 1 or 2 best group options and negotiate the best price AND terms (whatever you WANT).
FINALLY...HERE'S THE BEST PART (FOR YOU!)
We would do #3 for you WITHOUT CHARGING YOU A DIME TO DO SO! (Yes, you read that right!).
YOU DO NOT NEED TO HIRE A BROKER AND PAY THEM 7%-10% OF THE DEAL!!!
As a dentist of 36+ years (1987 graduate of Tufts University School of Dental Medicine) and a CBI (Certified Business Intermediary, I have the experience and business relationships to help you make the SMARTEST and MOST IMPORTANT decisions. As the CEO and Founder of Connect the Dents, a business development and M&A advisory company, we have done the following:
- Performed HUNDREDS of practice appraisals (just in the last 2-3 years, almost 2000 total) ALL OVER THE COUNTRY – small, large, GP, specialty, single location, multi-location.
WHY? It's simple -- OUR 2 STEP SYSTEM which factors in EVERYTHING YOUR PRACTICE IS!!!
1. POINTS -- Your practice is MUCH MORE than just what your financial documents say -- we analyze and score 8 important categories
2. CASH FLOW DETERMINATION WITH THE APPROPRIATE MULTIPLE
This system allows for for a "check and balances" system to assure a "grounded", accurate report utilizing TODAY's standards.
- 98% of those practices which do then sell or affiliate with a DSO/group using our FMV (Fair Market Value) determination do so AT EXACTLY THE VALUATED AMOUNT OR HIGHER!!!
- We have extensive profiles on dozens and dozens of DSOs – and focus EXCLUSIVELY on those of top integrity with proven models which focus on clinical excellence, dentist autonomy, and top patient care
If you own a practice and want to continue to practice 3-10+ years, it may be a very smart idea to find out what your practice is worth NOW and at least consider (not obligate to) finding out what sort of deal/offer is out there for you -- cash up front -- terms -- ongoing compensation, etc. How it would look for you to continue to practice without the headaches of managing the practice and also continue to earn excellent income for treating your valued patients. WE CAN HELP YOU!!!
Waiting until you are “ready to retire” can end up costing you and your family literally HUNDREDS of THOUSANDS (for some practices, even MILLIONS) of dollars.
Affiliating your practice with a DSO/group NOW does NOT mean you are retiring or having the ability to make less income. In fact, it's the OPPOSITE in most cases! You can continue to practice, not have the headaches of managing the practice, and, because you are focused on providing patient care and clinical matters, often earn higher income. Many financial experts say to do one or two things if you are a business owner with a growing business ---- either buy another business (practice) OR SELL YOUR BUSINESS at its peak value!
Think about this...what could you do WITH a bundle of CASH right now? (pay off debt, invest, buy a home, etc.). What IF you received this cash up front PLUS had the ability (with many DSO affiliations) to INVEST back some of what you received INTO the DSO itself ("roll-over" equity) to then possibly benefit from strong returns on that investment over the next 3-5+ years??? In a way, you could get paid "TWICE" for your practice!! Of course, that part is not guaranteed as it is an investment, but many DSOs have a strong growth and proven track record of return rate.
That's the opportunity you may have if you have a practice which collects $1MM+ a year
Here's the bottom line...there are "great" DSOs, "good" DSOs, and "bad" DSOs...so knowing WHO TO POSSIBLY AFFILIATE WITH IS KEY! Don't rely on RUMORS or get advice from someone who knows about a limited number of DSOs. Connect the Dents has a great deal of data, information, and extensive profiles on DOZENS OF DSOS--their business models, how they operate, what sort of deals/benefits they bring to the table, AND...their actual performances as described by our colleagues who have actually affiliated with them!
DSOs can, have, and will continue to, PAY "PREMIUMS" for solid practices, especially those which are in growth phase, within their target locations, and which the practice owner stays aboard.
The multiples being paid will NOT last forever, however,, and, many believe, including us at Connect the Dents, it may not be much longer. What does that mean? In simple terms, your practice could continue to increase collections, increase profitability and yet, if you instead looked at selling down the road instead of "now", get LESS (or MUCH LESS) even with better financial numbers.
PLEASE TAKE A MOMENT AND RE-READ ALL OF THE ABOVE INFORMATION. Add it all up and if it at least gets you CURIOUS, we urge you consider taking a look at where you stand now and then learn what your options are! Click on/go to Contact Us or call Dr. Tony directly at 917-796-4538 or email email@example.com to discuss your situation -- NO OBLIGATION to do anything and completely CONFIDENTIAL.
We provide appraisals as a STAND-ALONE SERVICE, meaning there are no expectations and no pressure to do anything with us OTHER than get the appraisal done. That is what you are paying us to do and that only!
We are NOT practice brokers just hoping to get your listing
At a minimum, knowing WHERE YOU STAND in terms of your practice value is a smart business decision. Learning what your FMV (Fair Market Value) is periodically is something every dental practice owner should consider.
Here's the RECAP...WHAT CAN WE DO FOR YOU?
FOR PRACTICE OWNERS -- any or all of the below 3 bullet points:
- Know where you stand: Valuate/appraise your practice — What is your practice REALLY WORTH? (see below)
- Determine what your options are NOW:
-- Buy another practice?
-- Consider selling?
- Considering affiliating with a DSO? Practices are selling at an all-time high right now, AND being able to get top dollar up front and continue to practice long-term without having to deal with administration/managing the practice is very appealing to many of us as dentists. Connect the Dents has extensive profiles on dozens and dozens of DSOs -- understands their business models -- and can help MATCH and INTRODUCE you with one that fits your clinical and philosophical interests. Here's the BEST PART for you....we'll help negotiate the best price and terms FOR YOU and you won't have to pay ANY (NOTHING) "BROKER" FEE!!! How's that sound?
LET'S TALK! SEND US A MESSAGE WITH QUESTIONS OR TO SET UP A 20 MINUTE CONFIDENTIAL, NO-OBLIGATION CALL! CLICK ON / GO TO Contact Us or call me directly at 917-796-4538 or email firstname.lastname@example.org