If you’re following along, in the previous email I shared a bit about the “branded” strategy for DSOs.
Most of the Dentists I work with are looking to connect with a DSO that is using an “acquisition” strategy.
This is the most dominant operating model for DSOs.
The idea for these DSOs is to fully acquire a Dentist’s practice while keeping the pre-existing identity of that business in order to protect the goodwill that the Dentist has built up over many years.
Since you are considering working with a DSO, I thought it might be helpful for you to understand the two primary operating models of DSOs …
The first, which I’ll get to in this email, are DSOs which run a “de novo branded” strategy (this means they built practices from scratch).
The other (an acquisition strategy), I’ll touch on in my next email.
On the de novo branded strategy …
Not having enough money to retire as a dentist is a common challenge.
If you’re experiencing this, don’t feel alone.
And there are good answers.
I’ll just let these words from a former client tell the story:
“I never dreamed I would partner with a DSO, but I had a problem that needed solving, so on a colleague’s advice, I spoke with Stan Kinder.
I hinted at this in a previous email …
One of the most enticing reasons I see dentists choose to sell their practice to a DSO has NOTHING to do with money.
It has everything to do with how they want to live their life.
In my forty-plus years of working with dentists, I have yet to meet one who said they wished they could spend more time paying the bills, dealing with staff issues, and the myriad of other business tasks that come with practice ownership.
I have a question, and a thought exercise for you today …
What do YOU most want to achieve in the next 3, 5, and 10 years?
Only you can figure out the specifics of this …
However,
Once you know your goals and desires, I would also encourage you to ask this:
Going through a sale with a DSO is a deeply involved process.
I actually really love this whole process … which is of course why I do what I do.
But you can see through my previous work that I work through every aspect of the sale process, and even afterward…
… (because sometimes there are bumps in the road post-sale, but I know how to navigate them) …
I’ve found it helpful for some dentists to understand WHY DSOs are growing the way they are, and more importantly …
Why the investors are so interested in dental businesses.
The short answer is “yield.”
Investors love being able to place their money into something which yields them more money …
Another FEAR-based misconception of DSOs is that they are not good places to work for dentists…
That they have high rates of turnover, and that ultimately you’ll end up hating your work and will quit.
Given the high rate of educational debt for most dental school grads, many are looking for opportunities where they can be assured of earning a good living and can develop their clinical skills.
There’s a lot more to the business of dental businesses and selling to a DSO than finding a good deal.
Even if you have a solid legal team, and you’ve been in business for a long time …
The right person helping you guide the ship can be more than valuable.
To give you insight, I want to share these words from Dr. Brad Freedman …
He is a general practitioner with a single site practice, and 1 associate operating about $2.4 million in topline revenue.
I hear this all the time …
DSOs are only interested in money, not your patients.
And if you go with a DSO your patient care will suffer in the name of their financial priorities.
And while there have been some concerns about DSOs in the Medicaid space (contact me to make sure you get in front of the right DSOs), this concept has been easily refuted.
