The Insider’s Guide to Partnering with a DSO What You Need to Know Before You Sell

The Insider’s Guide to Partnering with a DSO What You Need to Know Before You Sell

Oct 3, 2024 4:09:15 PM / by Everything DSO

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Dear Reader,

You’ve spent years, maybe decades, building your practice from the ground up. You’ve perfected patient care, managed every aspect of the business, and sacrificed more than most will ever know. Now, the thought of selling a stake in your practice and joining a DSO might feel like stepping into unknown territory—and that’s perfectly normal. You might be asking yourself: What will happen to my practice? Will I lose control? Can I still provide the quality care my patients expect?

The DSO partnership process doesn’t have to be scary or overwhelming. With the right guidance, you can have a smooth transition that preserves your legacy and improves your practice. Let’s walk you through the DSO partnership process so you know exactly what to expect.

Step 1: The Valuation – Knowing Your Worth

The first step in the DSO partnership process is understanding the value of your practice. DSOs will conduct a thorough valuation to determine what your practice is worth. This is about examining your profitability, patient base, location, and growth potential.

The Reality Check: Will I Get What My Practice Is Worth?

One of the biggest fears practice owners have is that their hard work will be undervalued. DSOs use metrics like EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) to assess profitability, which often highlights areas of strength that a traditional dentist-to-dentist sale might overlook. The key here is to ask questions, request a detailed breakdown, and compare offers so you know you’re getting a fair shake.

Tip: Prepare in Advance

With Everything DSO, we can show you how to boost your EBITDA by tightening up your operations, reducing unnecessary expenses, and highlighting your practice’s strengths. A well-prepared practice not only attracts better offers but also puts you in a stronger negotiating position.

Step 2: Negotiating the Deal – Structuring the Partnership

Once you know your practice’s value, the next step is negotiating the deal. This is where you outline what you’re selling—whether it’s a majority stake, a minority interest, or somewhere in between—and define your role moving forward.

The Fear Factor: Will I Lose Control?

A common misconception is that partnering with a DSO means losing all control. The reality? You retain a lot of influence over clinical decisions and patient care. DSOs want you to keep doing what you do best—treating patients. They handle the business side—HR, billing, compliance—so you can focus on dentistry without the burdens of management.

Tip: Clearly Define Your Role

You’ve got to be clear about what you want from the partnership. With Everything DSO, we help you negotiate your employment terms, how much control you’ll retain over clinical operations, and any performance metrics tied to your compensation. A well-structured deal is a win-win—you get to keep your practice running your way while benefiting from the DSO’s resources.

Step 3: The Transition Period – Adjusting to New Systems

After the deal is signed, the transition period begins. This is when the DSO integrates their systems, protocols, and management strategies into your practice. The length of this period can vary but generally lasts a few months.

Change is never easy, especially when it involves your life’s work. But DSOs are experts at this. They have refined their processes to streamline operations, improve patient management, and reduce administrative load.

Tip: Embrace the Learning Curve

There will be a learning curve, but you’re not alone. Lean on the DSO’s expertise, take advantage of training opportunities, and don’t be afraid to ask questions. The goal is to enhance your practice, not overhaul it.

Step 4: Integration – Becoming Part of a Larger Network

The final step is full integration into the DSO network. This is when your practice truly becomes part of something bigger. You’ll have access to shared resources, marketing power, advanced technology, and a network of colleagues who share your commitment to quality care.

Reality Check: Will Quality Suffer?

A major concern for many dentists is that joining a DSO will compromise the quality of care. But DSOs are committed to maintaining—and often enhancing—care standards. They invest in advanced technologies and continuous training, ensuring your practice not only meets but exceeds patient expectations.

Tip: Stay Engaged and Involved

Your voice matters. By staying engaged in the larger network, participating in decision-making processes, and continuing to advocate for your patients, you ensure that your practice remains a place of quality care, even as it grows within the DSO framework.

The Future You Deserve

Imagine stepping into your practice, free from the burdens of running a business. You’re backed by a team of experts who handle the logistics, allowing you to focus on your patients and the parts of dentistry you love. Your income is stable, your workload is lighter, and you’re part of a larger community that values your expertise. That’s the promise of partnering with a DSO.

Now, imagine the opposite: struggling under the weight of business management, feeling isolated, and watching competitors pull ahead. The choice isn’t just about selling your practice; it’s about choosing the right path for your future.

At Everything DSO, we’re here to help you through every step of the DSO partnership process. We’ll provide the guidance, insights, and support you need to ensure a successful transition that benefits you, your team, and your patients.

Contact us today to learn more about partnering with a DSO and how to navigate this life-changing process. Let’s make sure your next chapter is the best one yet.

Sincerely,

Your Team at Everything DSO

Everything DSO

Written by Everything DSO

 Stan Kinder

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