Listeners will learn how to interpret declining numbers, inconsistent hygiene schedules, sudden production increases, PPO manipulations, risky seller behaviors, and gaps in patient flow. By the end of the episode, you’ll understand how to look past broker language and identify the true health or weakness of a prospective practice.

Key Takeaways

1. Declining Production or Collections Are a Major Red Flag

If collections or production drop year-over-year even slightly it signals deeper issues.

This could mean a declining patient base, ineffective ownership, poor systems, lack of demand, or mismanagement.

2. Hygiene Department Instability Signals Deeper Problems

• Large swings in hygiene revenue
• Inconsistent recall schedules
• Declining hygiene visits
• These typically indicate poor systems, weak re-care, or a lack of organization affecting long-term revenue.

3. Sudden, Unexplained Production Increases Are Often Artificial

A seller spiking numbers in the year before the sale is a common tactic.

Examples include:

• Over-treatment
• Running unnecessary procedures
• Pre-billing treatment
• A buyer should be cautious: inflated numbers ≠ sustainable revenue.

4. PPO / Insurance Manipulation Is a Growing Concern

Practices sometimes:

• Drop PPOs before selling
• Switch PPO participation
• Adjust fee schedules to appear more profitable
• Understanding the insurance environment is essential to projecting true cash flow.

5. Seller Behavior Tells You Almost Everything

Pay attention if the seller:

• Wants to leave immediately
• Avoids answering questions
• Has incomplete records

Shows disorganized systems

These behaviors often align with financial or operational decline.

This episode is designed to help you start thinking like a CEO of your dental practice. Because yes, it’s a practice—but it’s also a business, with payroll, debt, taxes, benefits, and financial planning responsibilities.

Key Points

• EBITDA is a key financial metric every dental practice owner should understand.
• Even associates benefit from learning the business side of dentistry.
• Your dental practice operates like any other business—complete with payroll, taxes, and budgets.
• Understanding financials helps you become an effective CEO of your practice.
• Unlike large corporations, dentists provide services (not products), but the financial principles still apply.

#DentalBusiness #DentalPracticeManagement #EBITDA #DentalFinance #DentistryPodcast #DentalCEO #DentalAssociates #PracticeOwnership #DentalEntrepreneur #FinancialLiteracy #P&LExplained #BusinessOfDentistry

Whether you’re preparing to sell your dental practice or simply want to make smarter financial decisions, this episode will help you interpret your numbers and transform your P&L into a powerful decision-making tool.

Key Points:

Financial statements are your practice’s financial X-rays. They tell the story of all your effort.

P&L (Profit & Loss) shows income and expenses; it's key to understanding your monthly performance.

Balance Sheet shows assets and liabilities—important, but covered in a future episode.

Your P&L should be reviewed monthly—ideally by the 15th–20th of the following month.

Understand Net Operating Income: what's left after operational costs but before debt, taxes, and personal draw.

A well-structured P&L is essential whether you're managing or selling your practice.

Tools like QuickBooks Online and REACH Reporting can improve report clarity and benchmarking.

#DentalPodcast #DentalFinance #DentalPracticeManagement #ProfitAndLoss #PracticeCFO #DentalBusiness #DentalAccounting #DentalSale #PlandL #BalanceSheet #DentalOwners #FinancialFreedomDentist #DentistLife #SellYourPractice #DentalConsulting

Key Points:

Why selling too late can hurt your practice value

The hidden danger of “just listing with your CPA”

What happens when your staff finds out too soon

Why selling to the first buyer is often a trap

How working without a strong team can sabotage your deal

#PracticeSale #SellYourPractice #DentalBroker #DentalCPA #DentalFinance #PracticeCFO

Key Points Covered:

✅ Why credit scores matter for dentists and practice owners

✅ The role of debt in wealth accumulation and financial leverage

✅ Common misconceptions about credit and debt management

✅ The five key factors that determine your credit score

✅ How to strategically use debt to build wealth and avoid financial pitfalls

✅ Why leveraging assets like a dental practice can create long-term financial success

✅ Practical steps to improve your credit score and increase lending opportunities

Resources & Links:

💡 Learn more about financial planning for dentists at PracticeCFO.com

💡 Check your credit score and track your financial health with AnnualCreditReport.com

#DentalFinance #CreditScore #DebtManagement #DentalPractice #FinancialFreedom #WealthBuilding #DentistLife #PracticeOwnership #SmartInvesting #FinancialPlanning

In this episode, we delve into one of the most critical aspects of running a successful dental partnership: profit allocation. Drawing parallels between marriage dynamics and business partnerships, we explore three core models for distributing profits among dental practice owners. These models — the 50/50 Model, Associate-Owner Model, and Full Allocation Model — are unpacked to help you determine the best approach for your practice. Whether you're a seasoned dentist or exploring partnerships for the first time, this episode provides valuable insights into structuring financial success in your dental business.

Key Points:

Importance of Profit Allocation in Dental Partnerships:

• Financial arrangements impact business success and partner relationships.

Three Models for Profit Allocation:

• 50/50 Model: Equal distribution of profits, simple but less flexible.
• Associate-Owner Model: Combines individual production rewards with shared profits.
• Full Allocation Model: "Eat What You Kill" approach; rewards are based solely on individual contributions.

Factors Influencing the Right Model:

• Production levels, time commitment, and practice type.
• Balancing fairness with incentivizing productivity.

Practice CFO's Expertise:

• Years of experience guiding dental partnerships.
• Customized solutions tailored to practice-specific dynamics.

Special Considerations:

• Family practices often favor the 50/50 Model.
• Adjustments for specialists or varying partner roles.

The Importance of Financial Reserves:

• Maintaining at least one month’s expenses in working capital.

Exploring Practice Orbit:

• Innovative platform for buying and selling dental practices.

#DentalPartnerships #ProfitAllocation #DentalCPA #PracticeManagement #BusinessStrategies #EatWhatYouKill #AssociateOwnerModel #DentalBusiness #PracticeOrbit #DentistryInsights

In this episode, we explore the financial and legal intricacies of dental partnerships. Learn about the pros and cons of various legal structures, including S corporations and partnerships, and why selecting the right setup is crucial for tax efficiency and liability protection. Our host also shares tips on payroll, 401(k) planning, and navigating IRS requirements. Plus, discover how PracticeOrbit.com simplifies dental practice sales and connects you with expert advisors.

Key Points:

1. Importance of tailored tax planning for dental practices.
2. Understanding 401(k) plans and payroll management.
3. Legal structures for dental partnerships: S corporations vs. partnerships.
4. Why dentists should avoid C corporations due to double taxation.
5. Role of the K-1 in S corporation tax filings and FICA tax savings.
6. Legal setup advice: consulting dental-specialized attorneys.
7. Selling a dental practice through PracticeOrbit.com.

#DentalPartnerships #TaxPlanning #DentalPractice #SCorporation #PracticeOrbit #DentalBusiness #401kPlanning #TaxEfficiency #SmallBusinessTips #FinancialFreedom

So, what happens if you’re a Delta Premier provider and are considering the sale of your dental practice? Does it affect your value? And, if so, how?

The short answer is that it most likely will negatively affect the value. Let’s dig a little deeper.

Let’s first note that if you are a buyer considering the purchase of a dental practice where the dentist is a Delta Premier provider, then you should take great care in understanding the financial impact to you after you become the owner. I am aware of a practice that was purchased for nearly $2,000,000 which went bankrupt in just over a year because of this issue. Buyer beware! It sounds ominous, but it’s not that bad if you understand it and plan for it. To really explain the effect of Delta Premier on practice value, we’ll look at it from the seller’s perspective.

The heart of the issue is that Delta Premier rates of reimbursement will be reduced to Delta PPO rates of reimbursement when the new dentist gets credentialed. As sellers, you can expect savvy brokers, bankers, and buyers to estimate this reduction and subtract it from your collections. As we know, collections play a major role in the net operating income (NOI) of the dental practice. In other words, the higher the collections, the higher the NOI and the higher the practice value. The same is true when collections move the other way. In the case of Delta Premier rates, practices that have a heavy premier patient base will see higher offsets to their collections. That being said, calculating this reduction can be tedious and challenging. A listing broker should do their best to estimate this reduction; ultimately, however, the responsibility falls upon the buyer and the buyer’s consultants to determine the true effect of Premier billing. A rough estimate to calculate the premier reduction is to assume that 15% of the total collections come from Delta. Of those collections, 30% are rated as premier, so the math looks like this:

Total Collections x 15% x 30% = Delta Premier Reduction

In the case of a practice collecting $1,000,000 and using this formula, the reduction would be $45,000. However, it would not be accurate to say that the value of the dental practice was reduced by $45,000. Reducing the collections and the NOI by $45,000 could mean $100,000 swing in value to the banks based on their underwriting standards.

Of course, the formula above is just an estimate. A seller can show that the reduction might be negligible. For example, they might be able to prove that only 20 of 2,000 patients are rated as Delta Premier in their practice. In this case, the broker might not make a reduction and would just disclose in their marketing materials that the seller is a Delta Premier provider but that premier accounted for 1% or less of total collections.

To sum up, both buyers and sellers should take time and care to understand the effect of Delta Premier billing on the value of a dental practice. Doing so will ensure a fair trade for both parties and protect against very unfortunate surprises.

Customarily, the lease assignment is handled by the attorney of the dentist buying the dental practice. This generally occurs simultaneously with the drafting of the purchase and sale agreement. The selling dentist will notify the landlord of the proposed sale and introduce the buyer and buyer's attorney to the landlord. The buyer's attorney will then work with the landlord to provide qualifying information about the buyer and coordinate the drafting of the assignment and as often is required, the personal guaranty. When the lease has less thank 5 years of current term, the buyers attorney will also negotiate a lease extension as part of the assignment is finalized, the buyer will not only take over the lease but will have enough extended lease term to satisfy the bank. This is why dental lenders will always want to review both the final purchase contract and final lease documents prior to the drafting loan documents and funding the loan.

Should a dental broker be involved in this process? The short answer is sometimes. While dental attorneys are good at memorializing agreements, they may not be knowledgeable at negotiating market terms of the lease. What if the buying dentist could get concessions such as free rent or tenant improvements as part of the lease extension, or even a lower rate? A dental broker who negotiates leases and is in touch with the market conditions would know how to negotiate the best terms of the lease. But, introducing a broker to the process means that someone is going to have to pay a brokerage fee, and landlords generally don't like to pay brokerage fees when they already have a tenant. The reality is that the lease assignments are generally just headaches for the landlords because they are basically swapping one tenant for another and are likely not benefiting much financially. Because of this, lease assignment can take longer than expected as landlords often put them on the "back burner". On top of that, if a broker is introduced into the mix, the landlord may become even more reluctant to work through the process.

To sum up, yes you can still sell you dental practice even with just a few months left on the lease. If you are going to sell you practice, I would not recommend extending your lease prior to the finding a buyer. Doing so means you could be liable for the lease payments over the entire new term. A better strategy is to find a dental buyer first and then have the attorneys negotiate an extension for the buyer. This will most likely to result in you, the seller being removed as a guarantor of the lease in the shortest amount of time.

1. Price Allocation

The buyer will most likely be purchasing the assets of the dental practice rather than the seller’s corporate stock (assuming seller is established as an S or C Corporation). For tax purposes, the purchase price of the practice will be broken down into categories including supplies, furniture & equipment, non-compete, personal goodwill and corporate goodwill. How the price is allocated to each of these categories impacts the taxes for the seller and the depreciation schedule (future taxes) for the buyer.

As a general rule, approximately 75-85% will be allocated to goodwill, unless all of the equipment is brand new. Most buyers and sellers ask their accountants to provide and agree to the allocation.

2. Account Receivable

Because payment for work done by the seller prior to the sale will be received by the buyer, the parties must agree how this is to be treated. The easiest and cleanest way to do this is for the buyer to purchase the accounts receivable at the same time they purchase the practice. This is done at a discount using a sliding scale. For example, the buyer would pay 90% of A/R in the 0-30 day tranche, 80% of A/R in the 31-60 day tranche, etc. There are three reasons for the discount:

1. The seller receives the money now rather than waiting.
2. The buyer now assumes the risk of non payment
3. The buyer will be paying staff in order to collect the funds.

When purchasing the A/R, the calculation is customarily done one day prior to closing. If the buyer does not buy the A/R, the front desk will need to keep careful records of payments received, and buyer and seller will need to develop a method of depositing the seller’s money in the seller’s account. There is generally a 5% fee the seller pays the buyer for administering AR collections.

3. Delta Premier

Delta Dental has discontinued its Premier reimbursement rates for all new contracts. This means the buyer will only be able to receive Delta PPO rates, which are generally 25%-40% lower, depending on the sellers UCR schedule. If the seller is a Delta Premier provider, the buyer will most likely experience a reduction in collections for Delta patients (the difference between Premier and PPO fees). This is an important disclosure when buying and selling a practice and could make a significant impact on the value.

4. Covenant Not to Compete

The covenant not to compete ensures that the seller does not open a competing practice near the practice being sold. These covenants are usually for a specific period of time and specify a distance from the practice, 5 years and 15 miles for example. While these numbers are negotiable, the buyer should take great care in analyzing the impact of this covenant. This particular deal point should be addressed upfront on the letter of intent. Keep in mind that there is still some question as to the enforceability of this covenant in California.

5. Non-solicitation

Similar to the non-compete covenant, the seller must covenant not to solicit the dentist’s office patients or staff from the practice being sold. Doing so would be detrimental to the buyer and the buyer’s success. When buying a practice, a buyer relies on the staff staying in place and all patients staying with the practice (except for those noted by the seller such as family and friends).

6. Dental Retreatments

Retreatments can be burdensome for a buyer. A clear understanding of how retreatments are to be handled post sale is...]]>Every dental office sale requires that dental buyers, dental sellers, and attorneys agree to several, major deal points within the asset purchase agreement. Keep in mind that these negotiated deal points come after both parties have agreed to price and timing, and, while most of them are typical in the business-selling world, some are specific to dentistry. Below are our top 10:

1. Price Allocation

The buyer will most likely be purchasing the assets of the dental practice rather than the seller’s corporate stock (assuming seller is established as an S or C Corporation). For tax purposes, the purchase price of the practice will be broken down into categories including supplies, furniture & equipment, non-compete, personal goodwill and corporate goodwill. How the price is allocated to each of these categories impacts the taxes for the seller and the depreciation schedule (future taxes) for the buyer.

As a general rule, approximately 75-85% will be allocated to goodwill, unless all of the equipment is brand new. Most buyers and sellers ask their accountants to provide and agree to the allocation.

2. Account Receivable

Because payment for work done by the seller prior to the sale will be received by the buyer, the parties must agree how this is to be treated. The easiest and cleanest way to do this is for the buyer to purchase the accounts receivable at the same time they purchase the practice. This is done at a discount using a sliding scale. For example, the buyer would pay 90% of A/R in the 0-30 day tranche, 80% of A/R in the 31-60 day tranche, etc. There are three reasons for the discount:

1. The seller receives the money now rather than waiting.
2. The buyer now assumes the risk of non payment
3. The buyer will be paying staff in order to collect the funds.

When purchasing the A/R, the calculation is customarily done one day prior to closing. If the buyer does not buy the A/R, the front desk will need to keep careful records of payments received, and buyer and seller will need to develop a method of depositing the seller’s money in the seller’s account. There is generally a 5% fee the seller pays the buyer for administering AR collections.

3. Delta Premier

Delta Dental has discontinued its Premier reimbursement rates for all new contracts. This means the buyer will only be able to receive Delta PPO rates, which are generally 25%-40% lower, depending on the sellers UCR schedule. If the seller is a Delta Premier provider, the buyer will most likely experience a reduction in collections for Delta patients (the difference between Premier and PPO fees). This is an important disclosure when buying and selling a practice and could make a significant impact on the value.

4. Covenant Not to Compete

The covenant not to compete ensures that the seller does not open a competing practice near the practice being sold. These covenants are usually for a specific period of time and specify a distance from the practice, 5 years and 15 miles for example. While these numbers are negotiable, the buyer should take great care in analyzing the impact of this covenant. This particular deal point should be addressed upfront on the letter of intent. Keep in mind that there is still some question as to the enforceability of this covenant in California.

5. Non-solicitation

Similar to the non-compete covenant, the seller must covenant not to solicit the dentist’s office patients or staff from the practice being sold. Doing so would be detrimental to the buyer and the buyer’s success. When buying a practice, a buyer relies on the staff staying in place and all patients staying with the practice (except for those noted by the seller such as family and friends).

6. Dental Retreatments

Retreatments can be burdensome for a buyer. A clear understanding of how retreatments are to be handled post sale is critical. Customarily, if a patient needs retreatment, the buyer allows the seller to perform the work in the office. If the seller is not available, the seller will pay the buyer a percentage, 75% for example, of the office’s normal fee for the work. This agreement is usually in place for a specific window of time, 12 months for example, and may already be agreed to as part of the letter of intent.

7. Uncompleted Pre-Paid Procedures

Similar to retreatment, work still outstanding that the seller is obligated to will need to be addressed. If the seller is going to remain working in the practice, the seller can perform the work uncompensated and reimburse the buyer for supplies and staff of the dental practice. If the seller is not able to perform the work in the office, then the seller should agree to pay the buyer for the work. If possible, the seller should try and complete any outstanding procedures prior to the sale.

8. Supplies in Stock

Supplies must be maintained as if the practice was not being sold. Customarily, supplies and inventory should equal to approximately 15 days of normal operations and be completely paid for prior to closing.

9. Included/Excluded Assets

Generally when selling a practice, the buyer can assume that all of the equipment, tools, cabinetry, leasehold improvements, computers and furniture convey to the buyer with the practice. Occasionally a seller will not include certain items. Often these are personal items (personal computer, pictures, etc) but occasionally significant assets may be excluded. It is important for the seller to disclose any items that are not included, so the buyer can properly value the practice. In addition, banks require a detailed inventory as an exhibit of the purchase agreement to have a record of the assets purchased.

10. Indemnity

An indemnity clause in the APA protects each party from claims arising from events which happen outside of their ownership of the dental practice. The seller indemnifies the buyer from claims which arise during the seller’s ownership, and the buyer indemnifies the seller from claims which arise during the buyer’s ownership. In this way, the selling dentist is protected against future claims and the buying dentist is protected against past claims.

1. Staff costs that exceed the dental industry average. For a general dentist, that would be approximately 28%. High staff costs don’t just happen overnight. They happen when you continually give pay increases without corresponding increase to your collections. In heavy PPO practice, this trend has been common over the past few years due to a loss in Delta Premier and general lowering of contracted rates.
2. Facility costs (rent/maintenance) that exceed 10% of collections. We’ve found that practices with the highest value don’t correlate to practices with the nicest offices. And remember, you may only get 25 cents on the dollar, or less, of the value of a buildout/remodel when selling your practice. Hence, we don’t advice doing one within 5-7 years of selling your dental practice.
3. General spending in other areas that don’t affect your collections.

With that in mind, if selling is on the horizon, there are things that you can do now to prepare your dental practice for sale. Anything to streamline the health of your dental practice and your financial statement should be done as soon as possible. Buyers and banks like to see seasoning, or an amount of time to prove effectiveness. For example, you can’t just fire your staff one day and then expect to benefit from the savings the next. Banks usually use 3-year averages, so it takes time to make meaning adjustments.

As mentioned, increasing collections is an obvious start in increasing dental-practice value. Chances are though that if you are considering selling your dental practice, you might be out of gas and not excited about taking on more advertising, attending more study clubs or learning specialized skills. You may have even seen collections start to trail off. If this is the case, I would recommend selling immediately. The last thing you want is a “falling knife” scenario where collections are trending downward, and no one can predict how far down they will go. But if you’ve got some fumes left in the tank, then work to get those collections up. Upward trending collections allow banks and buyers to put more weight on the most recent year, and this can be a good thing—like the COVID rebound most dentists experienced in 2021.

Next, take a look at your expenses. Trim everything you can. Do you really need Netflix, Hulu and AppleTV+ in the office? Can you find a cheaper and comparable lab? There is always something. The largest portion of dental office expenses is in payroll. You’ll want to be careful here, especially in the current labor market. Finding good and devoted staff is tough. You may find that you actually need to hire staff, such as increasing hygiene days by hiring another dental hygienist or even looking for a hygienist with extended function to free you up to do more specialty work. Leveraging staff for higher collections is always a good thing.

Lastly, consider tiding the place up. As mentioned above, I wouldn’t recommend a full remodel, but if the walls are chipped and dirty, paint them, if the floors and carpet are scuffed and worn, fix or replace them. Is your cabinetry a strange color from the 70’s? If so, consider a cost-effective way to update them by refinishing the doors, for example. As we know, these office cosmetic touches may not sway the banks since they rarely ever see a practice, but they will influence and motivate buyers. The more dental practice buyers you get writing offers, the higher the price will potentially go. So don’t hesitate to take action now. Just like regular brushing and flossing, hard work and effort will pay off in the future.

In this episode, we dive deep into the intricacies of valuing dental practices, particularly in the context of partnerships. We break down key valuation concepts for general practitioners (GPs) and how factors like cash flow, overhead, and goodwill contribute to a practice’s overall worth. We also explore different partnership models, including associate buy-ins and common pitfalls when transitioning from associate to partner. Gain insight into how practice owners and associates can fairly assess and negotiate valuations to build equitable and sustainable partnerships.

Key Points:

1. Understanding Dental Practice Valuations: Importance of cash flow, overhead, and goodwill in determining a practice's value.
2. Associate Buy-In Models: Different approaches for associates buying into a practice, including up-front 50% buy-ins and phased purchases over time.
3. Calculating Ownership Value: Methods for estimating buy-in costs for associates and considering contributions to the practice’s growth.
4. Equity Distribution and Decision-Making: Pros and cons of 50-50 ownership versus minority stakes, and how these impact authority and motivation.
5. Potential Pitfalls in Partnerships: The need for clear agreements around patient distribution, revenue sharing, and equity to avoid conflicts and financial imbalances.
6. Importance of Professional Guidance: Engaging accountants, attorneys, and other professionals to ensure fair valuations and sustainable partnership structures.

#DentalPracticeValuation #DentalPartnership #AssociateBuyIn #DentalBusiness #DentalFinance #PracticeGrowth #DentalPartnerships #Goodwill

While we don't expect another full dental shutdown like we experienced in early 2020, a COVID resurgence may cause patients to push pause on dental treatment. This will differ from 2020 when patients "couldn't" get treatment to a situation where patients "wouldn't" get treatment. Should this happen, we expect downturns to follow the weather, viruses historically being more active in the colder months of Q1 and Q4. Dental practices can attempt to insulate themselves from patient continuousness by promoting safety and protocols, being diligent about staying in contact and even upping penalties for cancelations. ON the flip side, dental practices may also experience further staffing strain due to COVID flare ups, whether staff become infected or fear exposure by being chairside all day. Offices should have clear COVID policies and double ensure that staff remain safe and comfortable. Retaining staff in your dental practice will be as important as unlocking the front door in the morning.

On the subject if staffing, office values can be adversely affected by loss if staff and even newness of staff. Dental buyers know that hiring new staff members is extremely challenging in the market with many staff members tempted to move for higher pay and/or locations more proximate to their homes. This is especially true with hygienists whose payrates have seen double digit increase in 2021. These payrates have seen double digit increase in 2021. These payrates may continue to increase as finding skilled hygienists remains challenging and doctors are reluctant to sit at the hygiene chair themselves. For buyers, considering a practice without a hygienist is almost a nonstarter. Other staff members are equally important. Doctors who are selling to relocate and attempt to take staff members with them will likely experience considerable downward pressure on the pricing.

Although Staffing will remain a challenge, possibly the greatest risk facing the dental transition market is capital, i.e., banking. While most do not consider a dental office as being global, most would agree that banking is. The recession of 2008 started in the capital markets when large pools of securitized loans (CMBS) could no longer be sold. This caused an immediate banking shutdown, which lasted for months. The world has since cautiously restarted the CMBS engine, but other events can and will affect banking, and banking could be considered the most important reason the sakes market is currently so strong. Buyers of dental practices can borrow below 3% right now-historic lows in most of our lifetimes. While we expect this to last for 2022, we are anxious about unrelated events that could cause banks to pump the brakes-events like China's faltering commercial real estate market or continued lag in the supply chain...among a long list of others. If banks pull back, practice sale will slow considerably, and lending may only be available to A+ credit borrowers. In these cases, we anticipate loan dollars receding from higher near 90% of collection to amore conservative range of 70%-80%.

We continue to encourage dentists considering a sale of their practice in the next 2-3 years to consider a sale sooner. With current market dynamics, many sellers of dental practices are being spoiled by multiple offers from eager...]]>The year 2021 will g down in the books as our "rebound" year-the year the dental industry clawed its way back to the new normal after COVID. Most dental practices experienced a robust rebound as patients came back after long absence from treatment. This led to increase collections, full schedules and, oddly, a challenging labor market. We expect 2022 to continue this trend and remain a strong seller's market for those selling their dental practice. However, several risk factors could derail the trend. These include COVID resurgence, adverse tax changes/shortage, and global economic and political shifts.

While we don't expect another full dental shutdown like we experienced in early 2020, a COVID resurgence may cause patients to push pause on dental treatment. This will differ from 2020 when patients "couldn't" get treatment to a situation where patients "wouldn't" get treatment. Should this happen, we expect downturns to follow the weather, viruses historically being more active in the colder months of Q1 and Q4. Dental practices can attempt to insulate themselves from patient continuousness by promoting safety and protocols, being diligent about staying in contact and even upping penalties for cancelations. ON the flip side, dental practices may also experience further staffing strain due to COVID flare ups, whether staff become infected or fear exposure by being chairside all day. Offices should have clear COVID policies and double ensure that staff remain safe and comfortable. Retaining staff in your dental practice will be as important as unlocking the front door in the morning.

On the subject if staffing, office values can be adversely affected by loss if staff and even newness of staff. Dental buyers know that hiring new staff members is extremely challenging in the market with many staff members tempted to move for higher pay and/or locations more proximate to their homes. This is especially true with hygienists whose payrates have seen double digit increase in 2021. These payrates have seen double digit increase in 2021. These payrates may continue to increase as finding skilled hygienists remains challenging and doctors are reluctant to sit at the hygiene chair themselves. For buyers, considering a practice without a hygienist is almost a nonstarter. Other staff members are equally important. Doctors who are selling to relocate and attempt to take staff members with them will likely experience considerable downward pressure on the pricing.

Although Staffing will remain a challenge, possibly the greatest risk facing the dental transition market is capital, i.e., banking. While most do not consider a dental office as being global, most would agree that banking is. The recession of 2008 started in the capital markets when large pools of securitized loans (CMBS) could no longer be sold. This caused an immediate banking shutdown, which lasted for months. The world has since cautiously restarted the CMBS engine, but other events can and will affect banking, and banking could be considered the most important reason the sakes market is currently so strong. Buyers of dental practices can borrow below 3% right now-historic lows in most of our lifetimes. While we expect this to last for 2022, we are anxious about unrelated events that could cause banks to pump the brakes-events like China's faltering commercial real estate market or continued lag in the supply chain...among a long list of others. If banks pull back, practice sale will slow considerably, and lending may only be available to A+ credit borrowers. In these cases, we anticipate loan dollars receding from higher near 90% of collection to amore conservative range of 70%-80%.

We continue to encourage dentists considering a sale of their practice in the next 2-3 years to consider a sale sooner. With current market dynamics, many sellers of dental practices are being spoiled by multiple offers from eager buyers looking to leverage historically low lending rates. Plus, increasing collections, which was commonplace in 2021, have further fueled the confidence of buyers and aggressive valuations by banks. However, be on the lookout for events which won't necessarily seem to directly impact the dental industry. These global ripples can have adverse effects on patients, staff, banks and values. While we still feel confident that we can "hope for the best" in 2022, it is prudent to consider a "plan for the worst" strategy as a cyclical swing could be on the horizon

In this episode, we interview Bob Spiel and Bryton Nield, founders of Dentist Partner Pros (formerly Dentist Hiring Pros). Bob and Bryton spend most if their time helping a single doctor practice owner find, vet, and onboard partner. They outline the process of partnership that leads to a healthy, productive relationship in which one plus one equals three, both in professional enjoyment and financial reward. If you are in a dental partnership, or would like to be part of one, tune in. Lot of great content in this episode!

In this episode, we dive into the essentials of forming a successful dental partnership—a vital strategy in today's challenging economic landscape for dental practices. Our host draws on over 15 years of experience to highlight the financial benefits of partnerships, explaining how joining forces can alleviate cost pressure, increase profitability, and create a supportive work environment. Key discussion points include the importance of chemistry, shared clinical philosophy, and profit allocation between partners. Tune in to learn to navigate potential pitfalls and maximize the benefits of a dental partnership.

Key Points:

1. Benefits of Dental Partnerships - Understanding the economic advantages of sharing cost structures to boos take-home profits and enhance wealth-building.
2. Three Pillars of Successful Partnerships - Chemistry, shared clinical philosophy, and equitable profit sharing as the foundation for a harmonious business relationship.
3. Financial Insights on Cost Structures - Explanation of fixed vs. variable costs in dental practices and how partnerships can optimize expenses.
4. Navigating Challenges in Partnerships - The common reasons for partnership dissolution and the complexities of handling conflicts.
5. Evaluating Chemistry and Communication Skills - Why strong interpersonal skills and trust are crucial for long-term partnership success.

Rarely do bankers visit the practice in person. Typically, bankers review and loss statements, tax returns and production reports to make their decisions, and the emotion piece rarely factors in. In doing their assessment, banks try and determine what the true income and expenses of a dental practice will be for the buyer. This process requires them to strip out certain income and expenses that the buyer will not earn or incur. They call this income and expenses "add backs". For example, if the dental practice received $50,000 in government stimulus (e.g. PPP loans) and it shows on the profit and loss statement under income (collection), they will reduce income by $50,000 since that is no recuring, expected income in the future to the buyer. Similarly, they will go line by lone through the seller's financial statements looking for expenses that the buying dentist or, more specifically, the dental practice will not have to pay. These often includes the things like the selling dentist salary, associate pay if the buyer is going to cover the associate's production, loan interest, depreciation, travel, cell phone, auto, kids on payroll, etc. Once the bank has generated a profit and loss statement with add backs, they can apply their underwriting formulas to the collections and profit to determine the amount of the loan. A general rule of thumb for the banking formulas is 85% of collections and 2.2 times the profit. Where this two formulas intersects is approximately the value of the practice...at least in the mind of the bank. And more specifically, banks calculate a "Global Debt Coverage Ratio". This ratio is calculated by taking the expected net profits of the dental practice and dividing it by the sum of (1) all debt payments in the practice and (2) all debt payments outside if the practice. If the buyer does not have a home loan, the bank will impute an estimated rent. If the net cash flows are at least 1.25 times the global debt payment requirements, then they will generally commit to that loan.

Now, it is not entirely accurate to suggest that dental lenders are mere robots with simple inputs and outputs. They do consider other factors such as the total amount of debt the buyer has and whether the buyer's clinical skills and production matches those of the seller. Do they care if the chairs are new from A-dec or used from 1976? Not so much. This is where emotions comes in. I call it emotion, but it is more the characteristics of the dental practice that motivate buyers to want to buy it. For example, would you rather have a 3-op practice in Coronado? The characteristics of the dental practice also paly into value. not so much on paper, but in the actual process of selling it. These are the things that generate tours, get people talking, motivate dental buyers to write offers and competes for the opportunity. More ops, nicer equipment and better locations allow me to push value while fewer ops, older equipment and tertiary locations sometimes leave me wondering if the practice can even be sold. In special cases with special dental practices, I have even had buying dentists offer to pay more thank the bank will lend. Why? Sometimes good practices are hard to find and when you are trying to be picked as the buyer it makes sense to write a check.

To sum up,...]]>Valuing Dental practice is one part science and one part emotion. The science is the numbers—what the bank sees and uses to calculate the amount they will loan. The emotion part is everything else—the location of the dental office, condition of the equipment, the patient base, the recall program and many factors. As mentioned in the previous post, because bank make 100% loans for dental practices you can reasonably assume that Loan Dollars = Purchase price; i.e. the selling price is generally close to whatever the bank will lend. This makes understanding how banks approach valuations extremely important and how the emotion piece factors in with buyers

Rarely do bankers visit the practice in person. Typically, bankers review and loss statements, tax returns and production reports to make their decisions, and the emotion piece rarely factors in. In doing their assessment, banks try and determine what the true income and expenses of a dental practice will be for the buyer. This process requires them to strip out certain income and expenses that the buyer will not earn or incur. They call this income and expenses "add backs". For example, if the dental practice received $50,000 in government stimulus (e.g. PPP loans) and it shows on the profit and loss statement under income (collection), they will reduce income by $50,000 since that is no recuring, expected income in the future to the buyer. Similarly, they will go line by lone through the seller's financial statements looking for expenses that the buying dentist or, more specifically, the dental practice will not have to pay. These often includes the things like the selling dentist salary, associate pay if the buyer is going to cover the associate's production, loan interest, depreciation, travel, cell phone, auto, kids on payroll, etc. Once the bank has generated a profit and loss statement with add backs, they can apply their underwriting formulas to the collections and profit to determine the amount of the loan. A general rule of thumb for the banking formulas is 85% of collections and 2.2 times the profit. Where this two formulas intersects is approximately the value of the practice...at least in the mind of the bank. And more specifically, banks calculate a "Global Debt Coverage Ratio". This ratio is calculated by taking the expected net profits of the dental practice and dividing it by the sum of (1) all debt payments in the practice and (2) all debt payments outside if the practice. If the buyer does not have a home loan, the bank will impute an estimated rent. If the net cash flows are at least 1.25 times the global debt payment requirements, then they will generally commit to that loan.

Now, it is not entirely accurate to suggest that dental lenders are mere robots with simple inputs and outputs. They do consider other factors such as the total amount of debt the buyer has and whether the buyer's clinical skills and production matches those of the seller. Do they care if the chairs are new from A-dec or used from 1976? Not so much. This is where emotions comes in. I call it emotion, but it is more the characteristics of the dental practice that motivate buyers to want to buy it. For example, would you rather have a 3-op practice in Coronado? The characteristics of the dental practice also paly into value. not so much on paper, but in the actual process of selling it. These are the things that generate tours, get people talking, motivate dental buyers to write offers and competes for the opportunity. More ops, nicer equipment and better locations allow me to push value while fewer ops, older equipment and tertiary locations sometimes leave me wondering if the practice can even be sold. In special cases with special dental practices, I have even had buying dentists offer to pay more thank the bank will lend. Why? Sometimes good practices are hard to find and when you are trying to be picked as the buyer it makes sense to write a check.

To sum up, valuing practice can be both scientific and emotional. Understanding how each play off the other and results in a final practice value takes understanding, practice and time. If you are a dental practice seller, consider ways to increase your collections, reduce your expenses and spruce up the office. These efforts will increase you value and hasten the selling process. If you are a dental practice buyer, you will rely heavily on your banker to help you what you want to offer, but keep in mind there is more to it than what the bankers see, and you are likely competing against other who want the same thing you do. Being aggressive and building relationship with the seller will be key to winning. Good luck out there!

Maybe that’s a bit of a stretch when addressing this topic but finding the right fit when selling a dental practice is more than just a few common interests. Finding a great fit is equally important for both buyer and seller. Let’s break down why for each.

Seller

One of the questions I get asked the most by dental practice sellers is “How will I know if the buyer will take care of my patients and staff?” Let’s face it, selling something you’ve spent years growing, nurturing, and shepherding becomes more than just a business transaction; it becomes personal and emotional—like handing your child over to a new parent. “Will they immediately fire the staff?” “Will patients like the new doctor?” “Are their clinical skills similar to mine?” These are questions that are often more important to sellers than “How much is the offer?” or “What can I expect to keep after taxes?” Because of this, finding the right buyer becomes more than just who is paying the highest price. This is why I’m a big proponent of introducing buyers and sellers as soon as possible, and why I feel sellers should lead practice tours. Being involved from the beginning gives sellers the opportunity to ask questions, compare notes, find common ground and start trying to envision having someone new take over their sandbox. More often than not, the successful buyer of the practice is discovered during the initial tour and not when offers are submitted. When sellers feel like they have found the right buyer, it is a special event and one that almost always results in a massive weight being lifted off the seller’s shoulders.

Buyer

Dental practice buyers can sometimes be characters, like the time one told me, “You need to find Barbie for this one. The patients are not going to like a hairy guy like me.” As the broker, I wasn’t quite sure how to tackle that concern, so I suggested a full-body wax. Actually, I think I jokingly told him to just wear more PPE and no one would know. But, eventually, I had to take his word for it and put him down as a pass. When leaving jobs and taking out huge loans to buy a practice, Buyers want to know that 1) the staff won’t revolt and 2) the patients will not leave. This is another reason why I like sellers to lead the initial tour. Buyers can really like a practice on paper, but it is not until they meet the seller and start asking questions that it really gels. Plus, most of the initial questions buyers ask are clinical, so I’m basically no help at all. When buyers tour a practice, they make mental notes like the distance from their home and the flow of the office. They almost always struggle to balance their time envisioning themselves in the office with firing questions at the seller—all of which is sometimes difficult to do in 30-45 minutes. Much like the seller who may not be so concerned about the financial aspects of the sale, buyers, if they feel like they fit, will more or less leave the bank to sort the finances and will focus more on the transition.

So what are some areas that determine fit:

1. Personality and Demeaner
2. Clinical approach
3. Communication style
4. Leadership style
5. Office culture philosophy

The more dental buyers and sellers align in these areas, the more natural the transition.

So, does all this mean that fit is more important than money? After having sold many practices, I would have to say is a close competition, and this is because of the nature of the thing being sold. Practices are not cars, extended warranties, lemonade, or stocks, they are an entire chapter of a person’s life—especially for those who have spent decades treating thousands of people who often evolve from patients to friends. The right fit in a transition will almost always lead to future success of the practice, and that success is]]>You like the Rolling Stones? I like the Rolling Stones too! Great, you’ll be a perfect buyer for my practice!

Maybe that’s a bit of a stretch when addressing this topic but finding the right fit when selling a dental practice is more than just a few common interests. Finding a great fit is equally important for both buyer and seller. Let’s break down why for each.

Seller

One of the questions I get asked the most by dental practice sellers is “How will I know if the buyer will take care of my patients and staff?” Let’s face it, selling something you’ve spent years growing, nurturing, and shepherding becomes more than just a business transaction; it becomes personal and emotional—like handing your child over to a new parent. “Will they immediately fire the staff?” “Will patients like the new doctor?” “Are their clinical skills similar to mine?” These are questions that are often more important to sellers than “How much is the offer?” or “What can I expect to keep after taxes?” Because of this, finding the right buyer becomes more than just who is paying the highest price. This is why I’m a big proponent of introducing buyers and sellers as soon as possible, and why I feel sellers should lead practice tours. Being involved from the beginning gives sellers the opportunity to ask questions, compare notes, find common ground and start trying to envision having someone new take over their sandbox. More often than not, the successful buyer of the practice is discovered during the initial tour and not when offers are submitted. When sellers feel like they have found the right buyer, it is a special event and one that almost always results in a massive weight being lifted off the seller’s shoulders.

Buyer

Dental practice buyers can sometimes be characters, like the time one told me, “You need to find Barbie for this one. The patients are not going to like a hairy guy like me.” As the broker, I wasn’t quite sure how to tackle that concern, so I suggested a full-body wax. Actually, I think I jokingly told him to just wear more PPE and no one would know. But, eventually, I had to take his word for it and put him down as a pass. When leaving jobs and taking out huge loans to buy a practice, Buyers want to know that 1) the staff won’t revolt and 2) the patients will not leave. This is another reason why I like sellers to lead the initial tour. Buyers can really like a practice on paper, but it is not until they meet the seller and start asking questions that it really gels. Plus, most of the initial questions buyers ask are clinical, so I’m basically no help at all. When buyers tour a practice, they make mental notes like the distance from their home and the flow of the office. They almost always struggle to balance their time envisioning themselves in the office with firing questions at the seller—all of which is sometimes difficult to do in 30-45 minutes. Much like the seller who may not be so concerned about the financial aspects of the sale, buyers, if they feel like they fit, will more or less leave the bank to sort the finances and will focus more on the transition.

So what are some areas that determine fit:

1. Personality and Demeaner
2. Clinical approach
3. Communication style
4. Leadership style
5. Office culture philosophy

The more dental buyers and sellers align in these areas, the more natural the transition.

So, does all this mean that fit is more important than money? After having sold many practices, I would have to say is a close competition, and this is because of the nature of the thing being sold. Practices are not cars, extended warranties, lemonade, or stocks, they are an entire chapter of a person’s life—especially for those who have spent decades treating thousands of people who often evolve from patients to friends. The right fit in a transition will almost always lead to future success of the practice, and that success is most likely achieved when buyer and seller find someone who shares similar skills, goals, personalities. After that fit is achieved, a common interest in music can only help.

Step 1: What is the Value of My Practice?

Valuing a dental practice will be the topic of a future post, but the basics are this: banks are a major decider in the value of a dental practice. You might be on Main and Main and have all the top-of-the-line equipment, but the reality is that bankers rarely ever see any of that. What they see is income and expenses. Because most buyers will need a loan to buy your practice, they will rely on banks to fund 100% of the purchase. This generally means that Loan Dollars = Purchase Price, which is why banks play such an important role. Understanding the value of your practice is a key first step in selling. Brokers who specialize in practice sales and have relationships with bankers who fund practice loans can help with this and should be able to help free of charge.

Step 2: Do I Hire a Broker?

Practices have been sold with and without a broker. Not using a broker will save in selling costs and may be appropriate in certain circumstances. However, the sale of a small business such as a dental practice is complex and much less standardized then selling a home for example. Too often I see dentists who want to save the brokerage fee by trying it themselves. This often leads to longer-than-normal transition times, stress and failure. Because a transition involves many parties (buyers, sellers, bankers, attorneys and escrow agents) an experienced practice broker will be able to manage the transition process much more efficiently and with much more success. Brokers get paid when the deal closes, so they are motivated to keep everyone on task and moving towards closing. In addition, brokers will have a Rolodex of possible buyers, which means the practice gets exposed broadly to the market and will likely achieve a price that more than makes up for a brokerage fee. By the way, those fees range from 7.5% - 10% depending on the size of your practice, i.e., the bigger the practice the lower the fee.

Step 3: Marketing

If you’ve decided to hire a broker and have signed a listing agreement, the next step is preparing the marketing materials. Marketing materials can include things like a simple 1-page flyer with a few highlights, a postcard, and a detailed 30+ page prospectus outlining pertinent details of the practice. The goal of marketing materials is to generate tours. The more prospective buyers you get through the door, the more possibilities you have of receiving offers. Marketing time ends when an offer or “Letter of Intent” (LOI) is accepted. This can take as little as a few days or many months with the average being 1-2 months. Remember my comment above about Main and Main and all the top-of-the-line equipment? While these attributes of a practice may not affect the value with the banks as much, they will motivate potential buyers and reduce marketing time. Buyers love modern practices with $800,000+ in steady or increasing collections in good locations with 4+ operatories and strong hygiene programs. The more of these attributes your practice has, the less time you can expect to be on the market. Also, during the marketing period is when prospective buyers will tour the office and, hopefully, meet the seller. Some brokers try and keep buyer and seller...]]>The prospect of selling a dental practice can be a bit daunting, but, like selling houses or cars or your old CBCT, if you know the process and what to expect it becomes much easier. Many times, doctors are selling dental practices that they have spent the better part of their lives building and nurturing. They wonder “What will happen to my staff?” and “Will the new doctor take care of my patients?” among a hundred other questions that come with selling something that means more than just what the accountants and suppliers see. So, let’s break down the basics of selling a practice. Understanding the basics will, hopefully, alleviate the fear of and potentially help prepare for that eventual day.

Step 1: What is the Value of My Practice?

Valuing a dental practice will be the topic of a future post, but the basics are this: banks are a major decider in the value of a dental practice. You might be on Main and Main and have all the top-of-the-line equipment, but the reality is that bankers rarely ever see any of that. What they see is income and expenses. Because most buyers will need a loan to buy your practice, they will rely on banks to fund 100% of the purchase. This generally means that Loan Dollars = Purchase Price, which is why banks play such an important role. Understanding the value of your practice is a key first step in selling. Brokers who specialize in practice sales and have relationships with bankers who fund practice loans can help with this and should be able to help free of charge.

Step 2: Do I Hire a Broker?

Practices have been sold with and without a broker. Not using a broker will save in selling costs and may be appropriate in certain circumstances. However, the sale of a small business such as a dental practice is complex and much less standardized then selling a home for example. Too often I see dentists who want to save the brokerage fee by trying it themselves. This often leads to longer-than-normal transition times, stress and failure. Because a transition involves many parties (buyers, sellers, bankers, attorneys and escrow agents) an experienced practice broker will be able to manage the transition process much more efficiently and with much more success. Brokers get paid when the deal closes, so they are motivated to keep everyone on task and moving towards closing. In addition, brokers will have a Rolodex of possible buyers, which means the practice gets exposed broadly to the market and will likely achieve a price that more than makes up for a brokerage fee. By the way, those fees range from 7.5% - 10% depending on the size of your practice, i.e., the bigger the practice the lower the fee.

Step 3: Marketing

If you’ve decided to hire a broker and have signed a listing agreement, the next step is preparing the marketing materials. Marketing materials can include things like a simple 1-page flyer with a few highlights, a postcard, and a detailed 30+ page prospectus outlining pertinent details of the practice. The goal of marketing materials is to generate tours. The more prospective buyers you get through the door, the more possibilities you have of receiving offers. Marketing time ends when an offer or “Letter of Intent” (LOI) is accepted. This can take as little as a few days or many months with the average being 1-2 months. Remember my comment above about Main and Main and all the top-of-the-line equipment? While these attributes of a practice may not affect the value with the banks as much, they will motivate potential buyers and reduce marketing time. Buyers love modern practices with $800,000+ in steady or increasing collections in good locations with 4+ operatories and strong hygiene programs. The more of these attributes your practice has, the less time you can expect to be on the market. Also, during the marketing period is when prospective buyers will tour the office and, hopefully, meet the seller. Some brokers try and keep buyer and seller apart until closing, but I feel like they need to meet early on for several reasons such as giving the seller an opportunity to see how the buyer will fit in the practice and giving the buyer a sense of the seller’s practice philosophy and clinical regimen. Meeting early is especially important if the seller is going to remain in the practice for a transitional period, which is often the case. Orchestrating this requires consistent coordination and an open dialogue, so I think it’s better to start talking about it early.

Step 4: Escrow

Once an LOI is accepted, your broker will open escrow. Using an escrow isn’t absolutely necessary. You can still transition your practice with the bank acting as a quasi-escrow. However, I’ve found that banks like to be banks and sometimes have a hard time executing the tasks that an escrow agent would normally take care of, which usually just means delays. The buyer and seller split the cost of using an escrow, which is approximately $5,900 for a practice selling for $1,000,000 (less for smaller transactions, more for bigger ones). During the escrow period is also when the buyer performs their due diligence investigations, when the attorneys draft the asset purchase agreement “APA” and, if the seller leases their office space, when the landlord is notified and the lease assignment is drafted. The escrow agent will also run a lien search to see if the seller’s ownership entity has any outstanding debt. This includes loan such as equipment loans, practice purchase loans, PPP, EIDL and even car loans in some cases—any loans held under the entity that owns the practice. All of these loans must be paid off (or forgiven) prior to or at closing.

Step 5: Will I need to Hire an Attorney?

As far as I know, there are no standard sales contracts for selling a dental practice across dental attornies. This means that each time a practice is sold, an attorney must draft an APA (sometimes also called a purchase and sale agreement “PSA”). It is customary for the seller’s attorney to generate the first draft. Attorneys charge $5,000 - $6,000, so this becomes an additional expense for each party. Once a buyer has been sourced and escrow has been opened, the roll of your broker decreases and the roll of the attorneys increases. Using a football analogy, the broker gets the ball to the 20-yard line and then hands it off to the attorneys. The attorneys then finalize the APA, the lease assignment and closing provisions required by the bank to get it over the goal line, with the broker helping block along the way. I always recommend hiring an attorney once the buyer has been approved by their bank and has worked through most of their due diligence. Doing so earlier might mean a seller spends $5,000 with an attorney for a buyer who may not qualify for a loan or who might not perform for other reasons. When closing time comes, the attorneys will also help with things like entity formation and firing and rehiring of the staff (this happens so the staff then works for the buyer). Long answer is, yes, each party will need to hire an attorney. Attorneys are an integral part of the selling/buying process.

Step 6: Closing Escrow and Selling the Practice

The sale of the practice occurs when the APA is signed, and the money is transferred. If an escrow is used, the escrow agent will collect all funds necessary to close, ensure all paperwork is signed and in order, ensure all seller liens are paid in full and then close escrow. Prior to closing, escrow will send each party a settlement statement which details the income and expenses for each party. This gives everyone a clear sense of how the money is being distributed. Once escrow is closed, escrow will then wire funds as detailed on the settlement statement. At this point the practice is sold and the buyer is now the owner. If all has been done right, the seller transition period, the staff and patient notices, insurance accreditation, and the post-closing collection procedures have been worked out between the parties so that the transition is as smooth as possible. Below is a basic timeline to sell a practice…keeping in mind that if your practice has many of the attributes that buyers are looking for, it will likely sell faster.

Key Points:

1. Decision-Making Conflicts: Partnerships require mutual agreement on critical decisions like hiring, spending, and tax planning, which can lead to friction.
2. Differing Mission Statements and Values: Misalignment on long-term goals and practice strategies can create tension between partners.
3. Profit Allocation Complexities: Properly distributing profits is essential, and failure to do so transparently can lead to significant conflicts.
4. New Patient Distribution: Mismanagement of new patient allocation, especially when a new partner buys into the practice, can be a major point of contention.

#DentalPartnerships #BusinessTips #Dentistry #DentalPractice #DentalBoardroom #SmallBusiness #PracticeManagement #DentalProfessionals #ProfitAllocation #BusinessStrategy

In this episode of The Dental Boardroom Podcast, host Wes Reid kicks off a six-part series on dental partnerships. Whether you’re in a partnership or considering one, this series is packed with insights. Today’s episode focuses on the pros of dental partnerships, with a deep dive into how financial efficiencies, particularly in overhead costs, can benefit multi-doctor practices. Wes breaks down the different categories of overhead costs—labor, labs, supplies, facility, marketing, and admin—and explains which are fixed versus variable, providing a clear picture of how partnerships can reduce costs while increasing profitability.

Key Points:

Introduction to the Partnership Series

• Six-part series focusing on dental partnerships: pros & cons, valuation, legal structures, success elements, buy-in timeline, and partnership agreements.

Financial Efficiencies of Partnerships

• Explains fixed vs. variable overhead costs in dental practices.
• Categories of overhead: labor, labs, supplies, facility, marketing, and admin.

Breakdown of Overhead Costs

• Labor: Generally fixed, with potential variable elements like bonuses tied to production.
• Labs and supplies: Variable.
• Facility, marketing, and admin: Mostly fixed.

How Partnerships Reduce Overhead

• The financial advantage of having multiple doctors to share fixed overhead costs.
• Example scenario: How overhead costs decrease when a second doctor joins a practice.

Selling a Dental Practice

• Introduction to PracticeOrbit.com as a modern solution for dental practice sales, featuring various selling options.

#DentalPartnerships #DentalPractice #DentalBusiness #DentalOverhead #DentalValuation #PracticeManagement #DentistLife #PartnershipSuccess #FinancialEfficiency #PracticeOrbit

In this episode of the Dental Practice Sale Podcast, Wes Reed dives into a key question for dentists looking to sell their practices: Should you use a broker? Wes offers a fair and balanced breakdown of six compelling reasons to hire a broker and six reasons why it might not be the best fit for every seller. He emphasizes the importance of understanding the process and context around using a broker, whether you’re selling to a family member or a specialized buyer. Wes also shares insights on navigating the matchmaking and closing phases of practice sales and how brokers can provide crucial support — or, in some cases, unnecessary costs.

Key Points:

Why Use a Broker?

• Access to a larger pool of potential buyers (the broker’s Rolodex)
• Expertise in creating an appealing practice prospectus
• In-depth knowledge of the practice sale process
• Brokers act as intermediaries, simplifying communication between parties
• Connection with specialized bankers, attorneys, and accountants
• Brokers are highly motivated to close the sale and get paid only upon completion

Why Not Use a Broker?

• Brokers are highly motivated to close the sale, which may prioritize speed over quality
• Rolodex size and network reach may not always be as extensive as promised
• Brokers may overpromise sale prices to secure exclusivity agreements
• Exclusivity clauses can lock sellers into paying commissions even if the broker does little to close the deal
• Broker fees, typically ranging from 7-10%, can significantly reduce the seller’s final profit

#DentalPracticeSale #SellYourPractice #DentalBroker #DentalBusiness #PracticeSales #DentalPractice #BrokerProsAndCons #DentalIndustry #DentistLife

In general, the people who hold up deals are banks and landlords.

But there are steps both buyers and sellers can take to prevent these delays and shorten the timeline for a dental practice sale!

On this episode of the Dental Practice Sale Podcast, Dental Attorney Matt Odgers joins host Wes Read to continue their conversation on expediting a practice sale.

Matt and Wes discuss how to fast-track legal and clinical due diligence, explaining why it’s crucial to negotiate vendor contracts and lease terms before you list your practice.

They also share 4 ways to determine the value of your practice and describe the relationship between list price and closing timeline.

Listen in to understand why buyers and sellers should both reach out to the bank early on and find out if Practice Orbit can help speed up the sale of your dental practice.

Topics Covered

• The legal documents a seller needs to prepare for a practice sale
• Why it’s crucial to negotiate vendor contracts and talk to your landlord before you list your practice
• What a seller can do to expedite the clinical due diligence of a practice sale
• What a buyer can do to accelerate the timeline for a practice sale
• 4 ways to determine the price of your practice and how the list price impacts the closing timeline
• Common delays in closing a practice sale associated with banks and landlords
• Why it’s the seller’s responsibility to negotiate the lease terms a buyer might need
• How much faster you can close a practice sale if it’s staged well
• How Practice Orbit accelerates the process of selling your dental practice
• Why you need a ballpark valuation of your dental practice and how to get it done for free
• 2 reasons you might use Practice Orbit to sell your dental practice

Connect with Matt Odgers

Odgers Law Group

Odgers Law on LinkedIn

Connect with Wes Read & Drew Phillips

Practice Orbit

Email wes@practiceorbit.com or drew@practiceorbit.com 

Practice CFO

Practice CFO on Instagram

Practice CFO on Facebook

Practice CFO on YouTube

Resources

Dr. Kevin Kenny on the Dental Board Room Podcast

The Role of Escrow on the Dental Board Room Podcast

So, how long does a practice sale usually take? What can you do to accelerate that timeline?

On this episode of the Dental Practice Sale, Dental Attorney Matt Odgers joins host Wes Read to walk you through a typical timeline for selling a dental practice.

Matt and Wes discuss common delays that prolong the process, describing how to avoid those issues and shorten the timeline for a practice sale.

Listen in for insight on staging your practice for a sale and learn how to leverage Practice Orbit technology to fast-track the process of selling your dental practice.

Topics Covered

• Common timelines for a practice sale and important mile markers in the journey
• Wes’ motorcycle analogy for the process of buying a dental practice
• Why it’s beneficial to hire your accountant and attorney at the point of NDA
• How Practice Orbit technology shortens the timeline for selling your dental practice
• Potential consequences when the LOI to close period extends beyond 60 days
• Why it typically takes 4 months to sell a practice (once you’ve made the decision)
• What you can do to shorten the timeline for a dental practice sale
• How staging your practice for a sale is like preparing dinner for a family reunion
• Why Matt & Wes suggest having a weekly huddle with your team to drive the practice sale forward
• The primary financial and tax documents you need to prepare for a practice sale

Connect with Matt Odgers

Odgers Law Group

Odgers Law on LinkedIn

Connect with Wes Read & Drew Phillips

Practice Orbit

Email wes@practiceorbit.com or drew@practiceorbit.com 

Practice CFO

Practice CFO on Instagram

Practice CFO on Facebook

Practice CFO on YouTube

Resources

Dr. Kevin Kenny on the Dental Practice Sale Podcast

The Role of Escrow on the Dental Practice Sale Podcast

On this episode of the Dental Practice Sale, recurring guest Matt Odgers joins host Wes Read to explain why you want to start the process of selling your practice when collections are on the upswing.

Matt and Wes discuss the challenges of planning for a practice sale before there’s a crisis, challenging you to consider the financial and psychological aspects of retiring from dentistry.

Listen in for insight around selling your practice for reasons other than retirement and learn how to time the sale of your dental practice to get the best deal and ensure a smooth transition to the next phase of your life!

Topics Covered

• Why you want to start the process of selling your practice when it’s on the up
• The psychological challenge of planning for a practice sale before there’s a crisis
• Why you should know what your practice is worth (even if you have no intention of selling)
• Crises that require an immediate sale vs. crises that expedite the timeline for a sale
• Why financial independence is a primary factor in timing the sale of a practice
• How to know if you’re psychologically ready to stop working as a dentist
• Why Matt & Wes suggest planning what to do with your time once you retire
• How rising collections impact the price of a practice and speed of its sale
• Why it’s easier to sell a million-dollar practice as opposed to a $500,000 one
• Wes’ advice on paying off a 10-year practice loan
• What differentiates buying a dental practice from buying real estate
• Selling your practice to retire vs. selling your practice to pay off debt
• The benefits of selling your dental practice when interest rates are low
• Why Matt recommends timing the sale of your practice with your lease

Connect with Matt Odgers

Odgers Law Group

Odgers Law on LinkedIn

Connect with Wes Read & Drew Phillips

Practice Orbit

Email wes@practiceorbit.com or drew@practiceorbit.com 

Practice CFO

Practice CFO on Instagram

Practice CFO on Facebook

Practice CFO on YouTube

So, how do you know when it’s time to retire? What can you do to plan for the next chapter of your life?

Dr. Kevin M. Kenny is Adjunct Professor at the University of California, San Diego, and Founder of The Dr. Kevin M. Kenny Foundation, an organization that provides dental care at no cost to the working poor in San Diego and sponsors humanitarian missions overseas.

Dr. Kenny ran his own large private dental practice in San Diego for many years before retiring seven years ago.

On this episode of the Dental Practice Sale, Dr. Kenny joins host Wes Read to explain how he knew it was time to pass the torch and share his experience with selling a successful dental practice.

Dr. Kenny discusses the team of advisors you need to plan a practice sale and challenges us to consider what retirement will look like before we walk away.

Listen in for Dr. Kenny’s advice to young doctors on buying a dental practice and learn his simple blueprint for a successful practice sale.

Topics Covered

A high-level overview of Dr. Kenny’s career as a dentist

How Dr. Kenny knew it was time to sell his practice

Determining how much money you need for retirement

How bankers calculate the value of a dental practice

The CPAs role in helping you plan for a practice sale

Mitigating your tax liability in a dental practice sale

When to do a broker sale and when to sell your practice privately

The pros and cons of selling your practice to a DSO

Why you should hire an attorney who specializes in dental transitions

Cleaning up your books before you sell your practice

How to create a business plan for your retirement

Advice for young doctors who’ve just bought a practice

Dr. Kenny’s blueprint for a successful practice sale

The humanitarian mission of Dr. Kenny’s foundation

Connect with Dr. Kevin Kenny

The Dr. Kevin M. Kenny Foundation

Connect with Wes Read

Practice Orbit

Email wes@practiceorbit.com

Practice CFO

Practice CFO on Instagram

Practice CFO on Facebook

Practice CFO on YouTube

Resources 

Dr. Kenny on Dental Board Room Podcast EP018

McLerran & Associates

Global Dental Relief

How to Win Friends & Influence People by Dale Carnegie

The One Minute Manager by Kenneth Blanchard and Spencer Johnson

You’ve worked so hard for so long to build a private dental practice in your community. But now you’re thinking about exiting the business.

So, how do you know when it’s time to retire? What can you do to plan for the next chapter of your life?

Dr. Kevin M. Kenny is Adjunct Professor at the University of California, San Diego, and Founder of The Dr. Kevin M. Kenny Foundation, an organization that provides dental care at no cost to the working poor in San Diego and sponsors humanitarian missions overseas.

Dr. Kenny ran his own large private dental practice in San Diego for many years before retiring seven years ago.

On this episode of the Dental Practice Sale, Dr. Kenny joins host Wes Read to explain how he knew it was time to pass the torch and share his experience with selling a successful dental practice.

Dr. Kenny discusses the team of advisors you need to plan a practice sale and challenges us to consider what retirement will look like before we walk away.

Listen in for Dr. Kenny’s advice to young doctors on buying a dental practice and learn his simple blueprint for a successful practice sale.

Topics Covered

A high-level overview of Dr. Kenny’s career as a dentist

How Dr. Kenny knew it was time to sell his practice

Determining how much money you need for retirement

How bankers calculate the value of a dental practice

The CPAs role in helping you plan for a practice sale

Mitigating your tax liability in a dental practice sale

When to do a broker sale and when to sell your practice privately

The pros and cons of selling your practice to a DSO

Why you should hire an attorney who specializes in dental transitions

Cleaning up your books before you sell your practice

How to create a business plan for your retirement

Advice for young doctors who’ve just bought a practice

Dr. Kenny’s blueprint for a successful practice sale

The humanitarian mission of Dr. Kenny’s foundation

Connect with Dr. Kevin Kenny

The Dr. Kevin M. Kenny Foundation

Connect with Wes Read

Practice Orbit

Email wes@practiceorbit.com

Practice CFO

Practice CFO on Instagram

Practice CFO on Facebook

Practice CFO on YouTube

Resources 

Dr. Kenny on Dental Board Room Podcast EP018

McLerran & Associates

Global Dental Relief

How to Win Friends & Influence People by Dale Carnegie

The One Minute Manager by Kenneth Blanchard and Spencer Johnson

The Richest Man in Babylon by George S. Clason

On this episode of the Dental Practice Sale podcast, host Wes Read explains why the profit and loss statement is the primary document for determining the value of a practice.

Wes walks us through the anatomy of a P&L and describes how to calculate the true cashflow profit of a dental practice as well as its approximate list price.

Listen in for insight on using Practice Orbit’s price estimator tool and learn what to do if your practice is worth more than a bank is willing to lend.

Topics Covered

The success of the launch of our Practice Orbit dental practice marketplace

How Practice Orbit serves as the MLS for dental practices

What makes Practice Orbit a technology company rather than a broker

How Practice Orbit is leveraging agile development to improve over time

When you need to get a formal valuation for your practice (and when you don’t)

Why the P&L is the primary document for determining the value of a practice 

Wes’ insight into the anatomy of a P&L for a dental practice

Operating income + add-backs = true cashflow profit of a practice 

How Practice Orbit’s pricing tool estimates the value of a dental practice

How the cashflow of a dental practice translates to list price

What to do if your practice is worth more than a bank is willing to lend

How DSOs determine the value of a practice differently than private sales

Connect with Wes Read

Practice Orbit

Email wes@practiceorbit.com

Practice CFO

Practice CFO on Instagram

Practice CFO on Facebook

Practice CFO on YouTube

Resources 

Practice Orbit Price Estimator

But a good dental CPA has value beyond assisting with the basics of bookkeeping and price assessment.

So, what is the full value proposition of an experienced CPA in the context of a dental practice sale?

On this episode of our Dental Practice Transitions series, Dental Attorney Matt Odgers serves as guest host and interviews Wes Read on the role of a CPA in the practice transaction.

Wes explains how a good dental CPA forecasts the range of profitability for a buyer, and he walks us through the process of financial due diligence in a dental transition.

Listen in to understand how a CPA helps buyers make business decisions after closing and develop the mindset of a business owner to grow a financially successful dental practice.

Topics Covered

An overview of the CPA’s role in a dental transaction

How a good dental CPA assesses the profitability of a practice

Wes’ approach to forecasting the range of profitability for a buyer

How Wes defines financial due diligence in a dental transaction

Using a seller’s tax returns to validate data on a P&L

How a dental CPA might coach buyers on business decisions

What to do as a seller if your books are not in order

What a buyer should expect in terms of CPA fees for due diligence

PracticeCFO’s relationship with a buying dentist after closing

What differentiates the mindset of a clinician vs. business owner

Connect with Matt Odgers

Odgers Law Group

Email matt@practiceorbit.com

Connect with Wes Read

Practice Orbit

Email wes@practiceorbit.com

Practice CFO

Practice CFO on Instagram

Practice CFO on Facebook

Practice CFO on YouTube

Resources 

What You Need to Know About Submitting an LOI on DPS EP003

Must-Have vs. Nice-to-Have: Shaping the Terms of Your LOI on DPS EP004

Practice Sales: The Role of Escrow on DPS EP010

Practice Sales: The Role of an Attorney on DPS EP011

Episode Promo Videos 

Video Promo 1

You cannot sell a dental practice without clean books. And you definitely shouldn’t buy a practice without having an accountant evaluate its potential profitability.

But a good dental CPA has value beyond assisting with the basics of bookkeeping and price assessment.

So, what is the full value proposition of an experienced CPA in the context of a dental practice sale?

On this episode of our Dental Practice Transitions series, Dental Attorney Matt Odgers serves as guest host and interviews Wes Read on the role of a CPA in the practice transaction.

Wes explains how a good dental CPA forecasts the range of profitability for a buyer, and he walks us through the process of financial due diligence in a dental transition.

Listen in to understand how a CPA helps buyers make business decisions after closing and develop the mindset of a business owner to grow a financially successful dental practice.

Topics Covered

An overview of the CPA’s role in a dental transaction

How a good dental CPA assesses the profitability of a practice

Wes’ approach to forecasting the range of profitability for a buyer

How Wes defines financial due diligence in a dental transaction

Using a seller’s tax returns to validate data on a P&L

How a dental CPA might coach buyers on business decisions

What to do as a seller if your books are not in order

What a buyer should expect in terms of CPA fees for due diligence

PracticeCFO’s relationship with a buying dentist after closing

What differentiates the mindset of a clinician vs. business owner

Connect with Matt Odgers

Odgers Law Group

Email matt@practiceorbit.com

Connect with Wes Read

Practice Orbit

Email wes@practiceorbit.com

Practice CFO

Practice CFO on Instagram

Practice CFO on Facebook

Practice CFO on YouTube

Resources 

What You Need to Know About Submitting an LOI on DPS EP003

Must-Have vs. Nice-to-Have: Shaping the Terms of Your LOI on DPS EP004

Practice Sales: The Role of Escrow on DPS EP010

Practice Sales: The Role of an Attorney on DPS EP011

Episode Promo Videos 

Video Promo 1

Video Promo 2

But what, exactly, does a dental attorney do in the practice sale process? What should you look for in an attorney to help you buy or sell a dental practice?

On this episode of our Dental Practice Transitions series, Dental Attorney Matt Odgers is back with host Wes Read to discuss the role an attorney plays in the dental practice transition.

Matt and Wes walk us through the legal documents required in every practice sale as well as the deal-specific ancillary documents you might need.

Wes asks why it’s crucial to have a dental attorney review your LOI, and Matt explains what an asset sale agreement does and how it’s negotiated. 

Listen in for insight on the attorney’s role in negotiating either the lease or real estate purchase agreement and learn why it’s beneficial to use a dental specific attorney for your practice transition!

Topics Covered

The documents a dental attorney addresses in a given practice sale

Why it’s crucial to have a dental attorney review your LOI

What provisions in an LOI are binding (and which ones are non-binding)

How a good LOI includes timelines for due diligence

Matt’s approach when a buyer has little money in the bank but needs an LOI review

The purpose of the asset sale agreement and how attorneys negotiate it

Why it’s beneficial to use a dental specific attorney vs. a general business attorney

How a good dental attorney moves the deal forward when the other side won’t budge on a particular term

The attorney’s role in reviewing a lease and negotiating with the landlord

When to ask for a lease extension when the buyer takes over

How the process differs when a seller is at the end of their lease or owns the real estate

When you need a workback agreement or seller financing note

Connect with Matt Odgers

Odgers Law Group

Email matt@practiceorbit.com

Connect with Wes Read

Practice Orbit

Email wes@practiceorbit.com

Practice CFO

Practice CFO on Instagram

Practice CFO on Facebook

Practice CFO on YouTube

Resources

What You Need to Know About Submitting an LOI on DPS EP003

Must-Have vs. Nice-to-Have: Shaping the Terms of Your LOI on DPS EP004

The Role of Escrow in a Dental Practice Sale on DPS EP010

Episode Promo Videos

Every dental practice sale involves several legal documents. And that’s why an attorney is a crucial part of the transition team for both buyers and sellers.

But what, exactly, does a dental attorney do in the practice sale process? What should you look for in an attorney to help you buy or sell a dental practice?

On this episode of our Dental Practice Transitions series, Dental Attorney Matt Odgers is back with host Wes Read to discuss the role an attorney plays in the dental practice transition.

Matt and Wes walk us through the legal documents required in every practice sale as well as the deal-specific ancillary documents you might need.

Wes asks why it’s crucial to have a dental attorney review your LOI, and Matt explains what an asset sale agreement does and how it’s negotiated. 

Listen in for insight on the attorney’s role in negotiating either the lease or real estate purchase agreement and learn why it’s beneficial to use a dental specific attorney for your practice transition!

Topics Covered

The documents a dental attorney addresses in a given practice sale

Why it’s crucial to have a dental attorney review your LOI

What provisions in an LOI are binding (and which ones are non-binding)

How a good LOI includes timelines for due diligence

Matt’s approach when a buyer has little money in the bank but needs an LOI review

The purpose of the asset sale agreement and how attorneys negotiate it

Why it’s beneficial to use a dental specific attorney vs. a general business attorney

How a good dental attorney moves the deal forward when the other side won’t budge on a particular term

The attorney’s role in reviewing a lease and negotiating with the landlord

When to ask for a lease extension when the buyer takes over

How the process differs when a seller is at the end of their lease or owns the real estate

When you need a workback agreement or seller financing note

Connect with Matt Odgers

Odgers Law Group

Email matt@practiceorbit.com

Connect with Wes Read

Practice Orbit

Email wes@practiceorbit.com

Practice CFO

Practice CFO on Instagram

Practice CFO on Facebook

Practice CFO on YouTube

Resources

What You Need to Know About Submitting an LOI on DPS EP003

Must-Have vs. Nice-to-Have: Shaping the Terms of Your LOI on DPS EP004

The Role of Escrow in a Dental Practice Sale on DPS EP010

Episode Promo Videos

Video Promo 1

Video Promo 2

Should you use an escrow for your practice sale?

Matt Odgers is a Dental Attorney with Odgers Law Group and VP of Business Development and Legal Operations with Practice Orbit.

Matt has more than a decade of experience representing hundreds of dentists in the process of buying or selling a practice.

On this episode of the podcast, Matt joins host Wes Read to discuss the purpose of escrow in a private practice sale, beginning with the financial security it affords sellers.

Matt and Wes explain why buyers have a larger representation when an escrow is involved and how it significantly increases the probability of closing the deal.

Listen in to understand how an escrow agent helps move a dental practice transaction forward and learn when you can avoid using escrow vs. when it is necessary to protect you in a dental practice sale.

Topics Covered

What inspired Wes & Matt’s podcast series on dental practice transitions

How Practice Orbit simplifies the dental practice sale process

How using an escrow affords dental practice sellers financial security

Why the buyer has larger representation when an escrow is involved

Why Wes & Matt are advocates of earnest money in the escrow process

How escrow instructions should be built into the letter of intent 

How an escrow significantly increases the probability of closing a deal

The escrow agent’s role in moving a dental practice transaction forward 

How an escrow statement makes things easier from an accounting, tax and legal standpoint

When it makes sense to hold back a percentage of the purchase price in escrow (and release it to the seller after certain conditions are met)

When you might avoid using an escrow in a dental practice sale

Connect with Matt Odgers

Odgers Law Group

Email matt@practiceorbit.com

Connect with Wes Read

Practice Orbit

Email wes@practiceorbit.com

Practice CFO

Practice CFO on Instagram

Practice CFO on Facebook

Practice CFO on YouTube

Resources 

What You Need to Know About Submitting an LOI on DPS EP003

Must-Have vs. Nice-to-Have: Shaping the Terms of Your LOI on DPS EP004

Episode Promo Videos

Video Promo 1

What role does escrow play in a dental practice transition? How does it benefit buyers and sellers alike? 

Should you use an escrow for your practice sale?

Matt Odgers is a Dental Attorney with Odgers Law Group and VP of Business Development and Legal Operations with Practice Orbit.

Matt has more than a decade of experience representing hundreds of dentists in the process of buying or selling a practice.

On this episode of the podcast, Matt joins host Wes Read to discuss the purpose of escrow in a private practice sale, beginning with the financial security it affords sellers.

Matt and Wes explain why buyers have a larger representation when an escrow is involved and how it significantly increases the probability of closing the deal.

Listen in to understand how an escrow agent helps move a dental practice transaction forward and learn when you can avoid using escrow vs. when it is necessary to protect you in a dental practice sale.

Topics Covered

What inspired Wes & Matt’s podcast series on dental practice transitions

How Practice Orbit simplifies the dental practice sale process

How using an escrow affords dental practice sellers financial security

Why the buyer has larger representation when an escrow is involved

Why Wes & Matt are advocates of earnest money in the escrow process

How escrow instructions should be built into the letter of intent 

How an escrow significantly increases the probability of closing a deal

The escrow agent’s role in moving a dental practice transaction forward 

How an escrow statement makes things easier from an accounting, tax and legal standpoint

When it makes sense to hold back a percentage of the purchase price in escrow (and release it to the seller after certain conditions are met)

When you might avoid using an escrow in a dental practice sale

Connect with Matt Odgers

Odgers Law Group

Email matt@practiceorbit.com

Connect with Wes Read

Practice Orbit

Email wes@practiceorbit.com

Practice CFO

Practice CFO on Instagram

Practice CFO on Facebook

Practice CFO on YouTube

Resources 

What You Need to Know About Submitting an LOI on DPS EP003

Must-Have vs. Nice-to-Have: Shaping the Terms of Your LOI on DPS EP004

Episode Promo Videos

Video Promo 1

Video Promo 2

But Emmet Scott argues that clinicians are in the driver’s seat of these Dental Support Organizations.

You just have to remember that you’re the customer and evaluate your options carefully, knowing that whatever your career goals might be, there’s a DSO for that!

Emmet serves as Partner and Coach at the Dentist Entrepreneur Organization and Host of DSO Secrets Podcast.

Emmet is also the author of DSO Secrets: The Ultimate Guide to Building Your Dental Empire and President of the Association of Dental Support Organizations.

On this episode of The Dental Practice Sale Podcast, Emmet joins host Wes Read to discuss what’s behind the growing popularity of DSOs and describe the scale benefits of joining a Dental Support Organization.

Emmet explains how the DEO supports dentists who are looking to increase their impact, exploring how the organization helps doctors build leadership skills and unlock the full value of their dental practice.

Listen in for Emmet’s insight on what portion of dental practices belong to DSOs and learn how to identify the kind of support you need and choose an organization that aligns with your goals.

Topics Covered 

[2:14] How helping his best friend start a dental practice led Emmet to leadership roles in DEO and ADSO

[6:47] How DEO supports dentists who are looking to increase their impact

[12:52] The driving motivations behind the popularity of Dental Support Organizations

[21:32] What skills a dentist needs once they ‘get out of the chair’ to grow a bigger business

[25:19] How the DEO Growth Model gives dentists the tools to lead a larger practice

[29:09] Emmet’s insight on why dentists have 100% of the control in DSOs

[36:16] Emmet’s advice for private practices on evaluating their options for joining a DSO

[44:04] Why it doesn’t matter whether an organization is called a DSO, DLO or DPO

[46:57] What portion of dental practices are DSOs and Emmet’s predictions around the continued growth of Dental Support Organizations

[53:17] Why the scale benefits of joining a DSO outweigh the benefits of ‘the EBIDTA multiplier game’

Connect with Emmet Scott

Dentist Entrepreneur Organization

DSO Secrets Podcast

Connect with Wes Read, Matt Odgers & Drew Phillips

Practice Orbit

Email wes@practiceorbit.com, matt@practiceorbit.com or drew@practiceorbit.com

Practice CFO

Practice CFO on Instagram

Practice CFO on Facebook

There’s a misconception that DSOs allow private equity to swoop in and take profits away from dentists.

But Emmet Scott argues that clinicians are in the driver’s seat of these Dental Support Organizations.

You just have to remember that you’re the customer and evaluate your options carefully, knowing that whatever your career goals might be, there’s a DSO for that!

Emmet serves as Partner and Coach at the Dentist Entrepreneur Organization and Host of DSO Secrets Podcast.

Emmet is also the author of DSO Secrets: The Ultimate Guide to Building Your Dental Empire and President of the Association of Dental Support Organizations.

On this episode of The Dental Practice Sale Podcast, Emmet joins host Wes Read to discuss what’s behind the growing popularity of DSOs and describe the scale benefits of joining a Dental Support Organization.

Emmet explains how the DEO supports dentists who are looking to increase their impact, exploring how the organization helps doctors build leadership skills and unlock the full value of their dental practice.

Listen in for Emmet’s insight on what portion of dental practices belong to DSOs and learn how to identify the kind of support you need and choose an organization that aligns with your goals.

Topics Covered 

[2:14] How helping his best friend start a dental practice led Emmet to leadership roles in DEO and ADSO

[6:47] How DEO supports dentists who are looking to increase their impact

[12:52] The driving motivations behind the popularity of Dental Support Organizations

[21:32] What skills a dentist needs once they ‘get out of the chair’ to grow a bigger business

[25:19] How the DEO Growth Model gives dentists the tools to lead a larger practice

[29:09] Emmet’s insight on why dentists have 100% of the control in DSOs

[36:16] Emmet’s advice for private practices on evaluating their options for joining a DSO

[44:04] Why it doesn’t matter whether an organization is called a DSO, DLO or DPO

[46:57] What portion of dental practices are DSOs and Emmet’s predictions around the continued growth of Dental Support Organizations

[53:17] Why the scale benefits of joining a DSO outweigh the benefits of ‘the EBIDTA multiplier game’

Connect with Emmet Scott

Dentist Entrepreneur Organization

DSO Secrets Podcast

Connect with Wes Read, Matt Odgers & Drew Phillips

Practice Orbit

Email wes@practiceorbit.com, matt@practiceorbit.com or drew@practiceorbit.com

Practice CFO

Practice CFO on Instagram

Practice CFO on Facebook

Practice CFO on YouTube

Resources

DSO Secrets: The Ultimate Guide to Building Your Dental Empire by Emmet Scott

Association of Dental Support Organizations

DEO Growth Model

Entrepreneurial Operating System

Dean Gould of Dykema on The Dental Practice Sale Podcast

And if you’re thinking about selling your practice to a Dental Service Organization, it’s useful to understand the different deal structures available to you.

So, how are DSO deal structures evolving in a post-COVID world? And how can a dental lawyer help choose the option that’s right for you?

Dean Gould serves as Senior Attorney at Dykema, where he specializes in dental law and the DSO transaction space.

On this episode of the podcast, Dean joins host Drew Phillips to explain why DSOs are moving toward joint venture deals and how the site-level equity structure prioritizes income replacement and encourages organic growth.

Dean discusses the benefit of building a team of legal and financial advisors before you sell to private equity and describes how a dental lawyer can help structure a win-win scenario for you and the DSO at the LOI stage, giving you clarity and confidence prior to the resource-heavy due diligence process.

Listen in for Dean’s predictions around the success of doctor-centric DSOs and learn how to choose a deal structure that fits your risk tolerance and benefits you and your dental practice for the long term.

Topics Covered 

[3:54] What’s behind the trend to JV (also known as site-level equity) deals in the DSO space

[8:35] How different DSO ownership structures play out when a doctor exits the business

[13:50] The risk/reward profile of site-level equity deals vs. ownership at the holding company level

[18:40] How nuanced the terms can get around participating in recapitalization events

[22:08] How DSOs are incentivizing doctors to work past their 3- or 5-year workback agreements

[24:45] How doctors can take care of younger associates in negotiations with DSOs

[27:30] What DSOs are doing to prioritize income replacement and encourage organic growth

[31:11] How dental lawyers can help you with term sheets, LOIs, purchase agreements, new employment agreements, equity documents and lease arrangements

[35:36] Why private equity companies are growing real estate portfolios alongside their dental holdings

[37:17] Why Dean suggests getting your documents in order and building a team of legal and financial advisors before you sell to a DSO

[41:24] How a dental lawyer can help structure a win-win scenario for you and the DSO at the LOI stage, giving you clarity and confidence prior to the resource-heavy due diligence process

[45:29] Dean’s predictions around the evolution of specialty play platforms and the success of doctor-centric DSOs

[49:38] How to register for Dykema’s industry-leading DSO conference in Denver this July

Connect with Dean Gould 

Dykema

Dean on LinkedIn

Email dgould@dykema.com

Connect with Wes Read, Matt Odgers & Drew Phillips

Practice Orbit

Email wes@practiceorbit.com, matt@practiceorbit.com or drew@practiceorbit.com

Practice CFO

We’ve seen a consistent trend toward consolidation in the dental space for the last 15 years. But coming out of the pandemic, the DSO marketplace is changing.

And if you’re thinking about selling your practice to a Dental Service Organization, it’s useful to understand the different deal structures available to you.

So, how are DSO deal structures evolving in a post-COVID world? And how can a dental lawyer help choose the option that’s right for you?

Dean Gould serves as Senior Attorney at Dykema, where he specializes in dental law and the DSO transaction space.

On this episode of the podcast, Dean joins host Drew Phillips to explain why DSOs are moving toward joint venture deals and how the site-level equity structure prioritizes income replacement and encourages organic growth.

Dean discusses the benefit of building a team of legal and financial advisors before you sell to private equity and describes how a dental lawyer can help structure a win-win scenario for you and the DSO at the LOI stage, giving you clarity and confidence prior to the resource-heavy due diligence process.

Listen in for Dean’s predictions around the success of doctor-centric DSOs and learn how to choose a deal structure that fits your risk tolerance and benefits you and your dental practice for the long term.

Topics Covered 

[3:54] What’s behind the trend to JV (also known as site-level equity) deals in the DSO space

[8:35] How different DSO ownership structures play out when a doctor exits the business

[13:50] The risk/reward profile of site-level equity deals vs. ownership at the holding company level

[18:40] How nuanced the terms can get around participating in recapitalization events

[22:08] How DSOs are incentivizing doctors to work past their 3- or 5-year workback agreements

[24:45] How doctors can take care of younger associates in negotiations with DSOs

[27:30] What DSOs are doing to prioritize income replacement and encourage organic growth

[31:11] How dental lawyers can help you with term sheets, LOIs, purchase agreements, new employment agreements, equity documents and lease arrangements

[35:36] Why private equity companies are growing real estate portfolios alongside their dental holdings

[37:17] Why Dean suggests getting your documents in order and building a team of legal and financial advisors before you sell to a DSO

[41:24] How a dental lawyer can help structure a win-win scenario for you and the DSO at the LOI stage, giving you clarity and confidence prior to the resource-heavy due diligence process

[45:29] Dean’s predictions around the evolution of specialty play platforms and the success of doctor-centric DSOs

[49:38] How to register for Dykema’s industry-leading DSO conference in Denver this July

Connect with Dean Gould 

Dykema

Dean on LinkedIn

Email dgould@dykema.com

Connect with Wes Read, Matt Odgers & Drew Phillips

Practice Orbit

Email wes@practiceorbit.com, matt@practiceorbit.com or drew@practiceorbit.com

Practice CFO

Practice CFO on Instagram

Practice CFO on Facebook

Practice CFO on YouTube 

Resources

Dykema DSO Conference 2023

But when it comes to selling your business, there’s more to think about than just economics.

So, what’s the upside of selling your practice to a dental support organization? What are you giving up? And what factors should a doctor consider before they sell to a DSO?

Brannon Moncrief is Principal and CEO of McLerran + Associates, a full-service dental practice brokerage firm and sell-side advisor for DSO transactions.

On this episode of The Dental Practice Sale Podcast, Brannon joins host Wes Read to explain why private equity is bullish on investing in the dental industry and why PE is willing to pay more for a practice than traditional private buyers.

Brannon describes how McLerran helps clients identify a DSO based on their personality and goals, finding the right combination of economics, autonomy and support the doctor is looking for.

Listen in for insight on what differentiates the JV deal structure from a holding company model and learn how you might benefit from selling your practice to the right dental support organization.

Topics Covered

[0:46] Brannon’s background in dental practice sales and why he specializes in DSOs

[2:16] Why private equity funds are so bullish on investing in the dental industry

[6:10] Why PE is willing to pay more for a dental practice than traditional private buyers

[11:37] What a doctor is giving up when they sell their practice to a DSO

[18:42] How McLerran helps dentists identify a DSO based on their personality and goals

[31:14] Why McLerran takes its client’s practices to market in a bid process

[33:15] The wide range of offers a dental practice might get from different DSOs

[34:33] How the size of a DSO matters in terms of a seller’s return on equity

[38:59] What differentiates a JV or DPO deal structure from the holding company model

[42:01] Why the JV model is so popular among younger dental practice sellers

[47:21] Why doctors with a finite exit plan like the holding company model

[48:33] How a ‘recap’ works and how doctors get a payout from the equity swap

[52:38] Why Brannon believes several DSOs will go public in the near future

[53:52] How long the trend toward consolidation in the dental industry will continue

Connect with Brannon Moncrief 

McLerran + Associates

Brannon on LinkedIn

Connect with Wes Read, Matt Odgers & Drew Phillips

Practice Orbit

Email wes@practiceorbit.com, matt@practiceorbit.com or drew@practiceorbit.com

Practice CFO

Practice CFO on Instagram

Practice CFO on Facebook

Practice CFO on YouTube

Resources

MB2

The private equity behind DSOs is willing to pay a premium for dental practices.

But when it comes to selling your business, there’s more to think about than just economics.

So, what’s the upside of selling your practice to a dental support organization? What are you giving up? And what factors should a doctor consider before they sell to a DSO?

Brannon Moncrief is Principal and CEO of McLerran + Associates, a full-service dental practice brokerage firm and sell-side advisor for DSO transactions.

On this episode of The Dental Practice Sale Podcast, Brannon joins host Wes Read to explain why private equity is bullish on investing in the dental industry and why PE is willing to pay more for a practice than traditional private buyers.

Brannon describes how McLerran helps clients identify a DSO based on their personality and goals, finding the right combination of economics, autonomy and support the doctor is looking for.

Listen in for insight on what differentiates the JV deal structure from a holding company model and learn how you might benefit from selling your practice to the right dental support organization.

Topics Covered

[0:46] Brannon’s background in dental practice sales and why he specializes in DSOs

[2:16] Why private equity funds are so bullish on investing in the dental industry

[6:10] Why PE is willing to pay more for a dental practice than traditional private buyers

[11:37] What a doctor is giving up when they sell their practice to a DSO

[18:42] How McLerran helps dentists identify a DSO based on their personality and goals

[31:14] Why McLerran takes its client’s practices to market in a bid process

[33:15] The wide range of offers a dental practice might get from different DSOs

[34:33] How the size of a DSO matters in terms of a seller’s return on equity

[38:59] What differentiates a JV or DPO deal structure from the holding company model

[42:01] Why the JV model is so popular among younger dental practice sellers

[47:21] Why doctors with a finite exit plan like the holding company model

[48:33] How a ‘recap’ works and how doctors get a payout from the equity swap

[52:38] Why Brannon believes several DSOs will go public in the near future

[53:52] How long the trend toward consolidation in the dental industry will continue

Connect with Brannon Moncrief 

McLerran + Associates

Brannon on LinkedIn

Connect with Wes Read, Matt Odgers & Drew Phillips

Practice Orbit

Email wes@practiceorbit.com, matt@practiceorbit.com or drew@practiceorbit.com

Practice CFO

Practice CFO on Instagram

Practice CFO on Facebook

Practice CFO on YouTube

Resources

MB2

Heartland

When you go on vacation with your family, production stops. And if you get hurt, the show is over.

That’s what inspired Dr. Jeremy Young, a successful endodontist based in Grass Valley, California, to sell his practice to US Endo, a dental partnership organization or DPO headquartered in Irving, Texas.

On this episode of The Dental Practice Sale Podcast, Dr. Young joins Wes to share the story of buying and growing his endodontic practice in Grass Valley and explain how he decided to join US Endo.

Wes describes what differentiates a DPO sale from a DSO sale, and Dr. Young opens up about the mistakes he made in sharing the news of the sale with his team.

Listen in to understand how joining a DPO impacts the day-to-day operations of a dental practice and learn how Dr. Young became a part of US Endo’s leadership team when a neuromuscular disorder forced his early retirement from endodontics.

Topics Covered

[0:42] Dr. Young’s transition from being an associate in Folsom to owning his own endodontic practice in Grass Valley, California

[5:02] Why Dr. Young sold his thriving Grass Valley practice to US Endo

[11:37] How an equity swap gives the practice seller ownership in the purchasing DPO

[17:11] What differentiates a DPO sale from a DSO sale and the top lessons Dr. Young learned about selling to a DPO

[22:02] Why Dr. Young’s S Corp remains in place even after his practice was sold to US Endo

[24:55] The mistakes Dr. Young made in talking to his team about selling to a DPO

[31:12] Why there was little change in Dr. Young’s day-to-day operations after selling to US Endo

[35:12] How Dr. Young became a part of the leadership team at US Endo after developing a neuromuscular disorder in his dominant hand

Connect with Dr. Jeremy Young

Creekside Endodontics

Connect with Wes Read, Matt Odgers & Drew Phillips

Practice Orbit

Email wes@practiceorbit.com, matt@practiceorbit.com or drew@practiceorbit.com

Practice CFO

Practice CFO on Instagram

Practice CFO on Facebook

Practice CFO on YouTube

Resources

US Endo

MB2 Dental

On this episode of The Dental Practice Sale Podcast, your hosts Wes Read and Matt Odgers discuss the professionals involved in a dental practice sale, describing the responsibilities of the three required service providers—the CPA, attorney and banker.

Wes and Matt explain the optional but common positions in a transition team, sharing the value a broker, escrow agent and supply rep bring to the dental practice sale process.

Listen in for insight on when to include a practice management consultant, valuation expert or financial planner on your team and get familiar with the players involved in helping a buyer and seller close a dental practice sale!

Topics Covered

[3:07] 3 groups of professionals that can be involved in a dental practice sale

[7:13] The responsibilities of the seller’s CPA vs. the buyer’s CPA

[19:22] The pros and cons of dual representation with CPAs or attorneys

[24:06] When to bring your attorney into a dental practice sale and what they do

[28:31] The banker’s role in a transaction (and why Matt recommends working with a dental lender)

[33:07] What value a broker brings to the dental practice transition

[38:38] How the escrow agent acts as an independent third party to hold funds on the sale

[42:33] How having a supply rep inspect the dental equipment helps the transaction run smoothly

[44:08] When to include a practice management consultant, valuation expert, financial planner, HR attorney or lease specialist on your transition team

[50:07] Why Matt recommends interviewing multiple professionals before you choose your team

Connect with Wes Read, Matt Odgers & Drew Phillips

Practice Orbit

Email wes@practiceorbit.com, matt@practiceorbit.com or drew@practiceorbit.com

Practice CFO

Practice CFO on Instagram

Practice CFO on Facebook

Practice CFO on YouTube 

Resources

California Dental Association Conference

So, what are the terms every LOI should include in a dental practice sale? And what are the optional terms buyers and sellers might want to consider?

On this episode of The Dental Practice Sale Podcast, your hosts Wes Read and Matt Odgers continue their conversation on LOIs, explaining why any potential deal breakers should be included in the letter of intent.

Matt walks us through his ten mandatory terms, discussing how to address purchase price and payment terms in an LOI and offering advice on including a due diligence timeline and provision for termination of the letter of intent.

Listen in for insight on when to consider adding provisions for escrow, exclusivity or seller workback in your LOI and learn how to decide what terms to include in the letter of intent for your dental practice transaction.

Topics Covered

[0:13] The 10 mandatory terms every LOI should have in a dental practice sale

[1:13] Why most dental practice transactions are asset sales vs. stock sales

[7:34] Why a seller might exclude certain assets and how to address that in the LOI

[8:53] Determining the purchase price, payment terms and closing date in an LOI

[12:34] Matt’s advice on including a due diligence timeline in your LOI

[15:34] How banks and landlords hold up dental practice sales and what to do about it

[20:28] The default non-compete agreement Matt sees in most LOIs

[23:02] Why it’s crucial to include a provision for termination of the letter of intent

[24:28] When to include a confidentiality agreement and when it’s not necessary

[25:47] When to consider provisions re: a deposit and escrow in your LOI

[31:37] Why it’s optional to break down the purchase price across tangible and intangible assets

[33:07] How to decide whether to agree to exclusivity in your letter of intent

[35:14] Why Matt suggests leaving rework and retreatment out of the LOI

[36:11] When to include seller workback and seller carryback in your letter of intent

Connect with Wes Read, Matt Odgers & Drew Phillips

Practice Orbit

Email wes@practiceorbit.com, matt@practiceorbit.com or drew@practiceorbit.com

Practice CFO

Practice CFO on Instagram

Practice CFO on Facebook

Practice CFO on YouTube

Resources 

UCC Filings

So, who drafts the initial letter of intent? Should your CPA and attorney review the LOI before you submit it? Is it a binding legal document?

On this episode of The Dental Practice Sale Podcast, your hosts Wes Read and Matt Odgers sit down to discuss the purpose of a letter of intent, explaining why it’s beneficial for the seller to draft the LOI and what it means when the buyer asks for an exclusivity provision.

Wes challenges buyers to run a cashflow analysis before agreeing to a purchase price in the letter of intent, and Matt describes which terms of the LOI are legally binding and which are not.

Listen in to understand when a seller might ask for a deposit and learn how to begin the negotiations for a dental practice sale by submitting a letter of intent.

Topics Covered

[1:24] How a seller or broker lists a dental practice for sale on Practice Orbit

[3:50] The purpose of a letter or intent or LOI in the dental practice sale process

[5:10] Why it’s beneficial for the seller to draft the letter of intent

[8:49] How a seller can have more than one active LOI (unless they’ve agreed to an exclusivity provision)

[10:00] Why a seller might not agree to exclusivity in a letter of intent

[12:25] When a buyer and seller should engage their legal team in the dental practice sale process

[14:34] Why buyers should calculate their cashflow before agreeing to a purchase price

[17:26] The tools available through Practice Orbit to help buyers estimate the cashflow of a practice

[20:52] Which terms in an LOI are legally binding and which ones are not

[23:17] When it’s a good idea for a seller to ask for a deposit and how it’s calculated 

Connect with Wes Read, Matt Odgers & Drew Phillips

Practice Orbit

Email wes@practiceorbit.com, matt@practiceorbit.com or drew@practiceorbit.com

Practice CFO

Practice CFO on Instagram

Practice CFO on Facebook

Practice CFO on YouTube

Resources 

California Dental Association Conference

Associates on Fire Videos

The problem is, banks don’t like a downward trend. And if you want the highest possible valuation for your practice, Dr. Bob Marcus, DMD, recommends practicing at 100% until the point of sale.

But how do you make that decision? How do you know it’s time to put your practice on the market? And then how do you make the transition as smooth as possible for your patients and employees?

Bob ran a successful dental practice in the San Diego area for 20-plus years, growing it into $2 million business with a profit margin of nearly 50%.

But four years ago, an eye condition forced him to sell quickly, and he transitioned into consulting. Today, he provides customized coaching and training to help good dental practices get even better.

On this episode of the Dental Practice Sale Podcast, Bob joins host Wes Read to share the strategy he used to lower his overhead, generate surplus income and climb the wealth ladder through his practice.

Bob discusses the eye condition that forced him to sell, describing how he communicated that information to patients and staff and worked with the buyer to maintain continuity in the transition.

Listen in for Bob’s experience of selling the physical building along with his dental practice and learn how Practice Orbit can help you find a buyer that’s the right fit for your team and the people you serve.

Topics Covered

Why Bob sold his practice 4 years ago and became a consultant for dentists

The strategy Bob used to lower his overhead and build a 50% profit margin in his GP practice

Wes’ 3 breakeven numbers for a dental practice—keep-your-doors-open, living and goals-based

How to use surplus income from your practice to climb Wes’ wealth ladder

The eye condition that forced Bob to sell his dental practice and how he communicated that information to patients and staff

Why Bob recommends practicing at 100% until the point of sale vs. tapering off into retirement

How Bob addressed his team’s fears and worked with the buyer to maintain continuity in the practice

Why it’s healthier to be honest with patients and staff about your intention to sell

Bob’s experience of selling the physical building along with his dental practice

What happened in the 5-week period between the time Bob listed his practice to the time it closed

The benefit of using dual representation for the buyer and seller of a practice

Connect with Bob Marcus

Bob Marcus, DMD

DDS GP App

Connect with Wesley Read

Practice Orbit

Practice CFO

Practice CFO on Instagram

Practice CFO on Facebook

Practice CFO on YouTube

Resources

Dental Board Room Podcast

Bob on Dental Board Room EP044

In fact, you’ll be lucky to find a handful of potential buyers through a local broker or dental society.

But what if there was  that brings buyers and sellers together in one place online. And what if it not only connected buyers and sellers but helped facilitate a smooth, stress-free transaction?

On this inaugural episode of the Dental Practice Sale Podcast, your hosts Wes Read, Matt Odgers and Drew Phillips sit down to explain why they built Practice Orbit and how the multisided tech platform works to create a marketplace for buying and selling a dental practice.

Wes, Matt and Drew discuss how the dental practice sale industry has changed in the last 20 years, describing how they think about the trend toward consolidation and why there will always be a place for private practices.

Listen in for insight on what to expect from future episodes of the Dental Practice Sale podcast and learn how the tools available through Practice Orbit improve the experience of buying or selling a dental practice!

Topics Covered 

Wes, Matt and Drew’s background serving dentists and why they built Practice Orbit

The 3 reasons Wes, Matt and Drew are doing the Dental Practice Sale Podcast

How multisided tech platforms like Practice Orbit create community, consolidate supply and demand and crush transaction costs

What’s happening in the dental practice sale industry and how it’s changed in the last 20 years

How Wes, Matt and Drew think about the trend toward consolidation and why there will always be a place for private dental practices

The marketplace creation value proposition of the Practice Orbit tech platform

What role brokers play in the traditional dental practice sale and how they might fit into the Practice Orbit ecosystem

The tools Practice Orbit offers to improve the experience of buying or selling a dental practice

Why there’s no signup fee or obligation to use Practice Orbit (and how you pay 1% of the sale price only if you’re introduced to the buyer through the site)

What Wes, Matt and Drew will cover in future episodes of the Dental Practice Sale Podcast

Connect with Wes Read, Matt Odgers & Drew Phillips

Practice Orbit

Email wes@practiceorbit.com, matt@practiceorbit.com or drew@practiceorbit.com

Practice CFO

Practice CFO on Instagram

Practice CFO on Facebook

Practice CFO on YouTube

Resources 

Odgers Law Group

Dental Board Room Podcast

Associates on Fire

If you’re looking to sell a house, listing it on Zillow is a good way to attract a pool of qualified buyers. But the same option doesn’t exist for those of you looking to sell your dental practice.

In fact, you’ll be lucky to find a handful of potential buyers through a local broker or dental society.

But what if there was  that brings buyers and sellers together in one place online. And what if it not only connected buyers and sellers but helped facilitate a smooth, stress-free transaction?

On this inaugural episode of the Dental Practice Sale Podcast, your hosts Wes Read, Matt Odgers and Drew Phillips sit down to explain why they built Practice Orbit and how the multisided tech platform works to create a marketplace for buying and selling a dental practice.

Wes, Matt and Drew discuss how the dental practice sale industry has changed in the last 20 years, describing how they think about the trend toward consolidation and why there will always be a place for private practices.

Listen in for insight on what to expect from future episodes of the Dental Practice Sale podcast and learn how the tools available through Practice Orbit improve the experience of buying or selling a dental practice!

Topics Covered 

Wes, Matt and Drew’s background serving dentists and why they built Practice Orbit

The 3 reasons Wes, Matt and Drew are doing the Dental Practice Sale Podcast

How multisided tech platforms like Practice Orbit create community, consolidate supply and demand and crush transaction costs

What’s happening in the dental practice sale industry and how it’s changed in the last 20 years

How Wes, Matt and Drew think about the trend toward consolidation and why there will always be a place for private dental practices

The marketplace creation value proposition of the Practice Orbit tech platform

What role brokers play in the traditional dental practice sale and how they might fit into the Practice Orbit ecosystem

The tools Practice Orbit offers to improve the experience of buying or selling a dental practice

Why there’s no signup fee or obligation to use Practice Orbit (and how you pay 1% of the sale price only if you’re introduced to the buyer through the site)

What Wes, Matt and Drew will cover in future episodes of the Dental Practice Sale Podcast

Connect with Wes Read, Matt Odgers & Drew Phillips

Practice Orbit

Email wes@practiceorbit.com, matt@practiceorbit.com or drew@practiceorbit.com

Practice CFO

Practice CFO on Instagram

Practice CFO on Facebook

Practice CFO on YouTube

Resources 

Odgers Law Group

Dental Board Room Podcast

Associates on Fire

EBITDA Valuation Method

Kareo

https://link.chtbl.com/Dental_Practice_Sale