Starting Your Network – Part 1 of 2

 

A question that I am often asked is “How do I start a DSO” or “What’s the first thing that I should do when starting a network”?

Just to clarify before we start, what we are talking about is not the corporate DSO’s but rather networks of no more than 15 to 20 offices.

Getting back to our question, a seemingly obvious answer would be to buy another practice.  While this is what many dentists do…

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Have a Plan – Avoid the Predators

 

Whenever you have significant environmental changes such as the COVID-19 pandemic there will inevitably be parties who will look for ways to take advantage of the situation. We will be addressing two issues in this week’s blog post, the “predatory threat” and our recommended solution.  As we begin to emerge from the pandemic (and to be clear that we are only just at the beginning of this process), there will be a lot of…

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Timing is Everything

 

“Timing is Everything” – it has been said at least a million times, but when it comes to selling your practice it perhaps has never been truer.

We are just now emerging from the most complicated economic and human tragedy that most of us will ever experience.  In economic terms alone the cost has been staggering, well into the trillions of dollars. But of course, you know that all too well, as you have also…

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Should You Increase Your Revenue, or Decrease Your Expenses?

 

We have previously addressed the issue that practice value is a function of profit. Increasing your profit not only provides you with more cash flow, it also increases the value of your practice.  Profit is the result of subtracting your expenses from your gross revenues, so to increase your net profit you can do it by increasing your gross, decreasing your costs or a combination of the two.  A combination of the two would…

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“Wellth” for Dentists

Back in March we posted a blog titled “What is Your Biggest Expense?” that focused on the need to look at your financial world from a consolidated perspective.  This is the first of two additional blogs whose purpose is to lay the foundations that will help, in this case, young dentists focus on a consolidated approach to their finances and which we will call “Wellth” for Dentists.

As a new graduate from dental school…

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Magic Metrics

“How is my practice doing compared to other practices out there?”  A common question that we are often asked particularly by dentists looking to sell their practices.  Sometimes the answer is “not as good as it could be, but nothing that a few tweaks couldn’t fix.”  The real question of course is how do we know; how could you know if your practice is doing well or not?  The answer to that question should…

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How Much is Too Much?

In a market that at times seems to have gone crazy, how do you know what to actually pay for a dental practice?  There is no question that today’s (2017/18) dental practice purchase and sale market is often very irrational with practices selling for as much as 200% of gross revenue.  In this kind of market, can you really know what is enough and what is too much?  Let’s look at how to come…

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What is Your Biggest Expense?

Chances are pretty good that if you are reading this you are a dentist, or at least in someway related or connected to a dentist.  That being the case, in response to the title of this blog, you may be thinking that your biggest expense is your rent or maybe your dental supplies, certainly it could be your staff costs or perhaps the cost of your associates if you have any.  If you guessed…

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How to Deal with Corporate Buyers

If you have a medium to large sized practice you have no doubt been contacted by one of the dental corporate buyers offering to acquire your practice.  By way of background there are three primary corporate buyers (the “Corps”): Dental Corporation of Canada (DCC), Altima Dental and Vibrant Dental Group or 123 Dentist.  Dental Corporation of Canada was founded in 2011 and is the largest of the three with approximately 250 locations.  Altima Dental…

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The “Active Patient” Conundrum

Knowing how many active patients a practice has should be one of the most important metrics for virtually all buyers, and correspondingly should be an important metric for all sellers.  While most sellers and buyers would agree with that statement, the concept of an active is one fraught with misunderstanding and confusion.  The reason for this is pretty simple – there is very little consensus about what an “active patient” actually is.  To clearly…

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