The Practice Buyer's Corner - Random Musings from the Buy-Side
The Practice Buyer's Corner - Random Musings from the Buy-Side
The purpose of this blog is to share current, real world, experiences on the topics of practice valuation, practice transition, retirement planning, and building equity value - over time - in your dental practice.
Blog By:
seanepp
seanepp

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While getting the historical payroll figures accurate remains important from a due diligence perspective, understanding the exact payroll you’ll be stepping into as the new owner on Day 1 must be the priority. Why?  Because historical payroll data is just that, history.  A lot can happen in any...  Read More
Catching The Falling Knife
DISCLAIMER:  I’m not an attorney, I’ve spent millions on legal fees, and I stayed at a Holiday Inn Express last night.  This is not legal advice! We are seeing a pronounced uptick in financially distressed private practices of all sizes and varieties across the country. There is no singular...  Read More
What is the fundamental asset being conveyed in the sale of a dental practice? Nope, it is not how much revenue or EBITDA the practice generates.   It is THE PATIENT BASE! This applies primarily to practices providing hygiene services be they a) general dentistry, or b) pediatric and periodontic...  Read More
When Is It The “Right Time” To Sell My Practice?
“If you are waiting for the right time…  Time never comes.  Time only goes.” There are plenty of pundits and experts to weigh in on when and how any business owner should monetize their business.  Dentistry is no different.  Many of these same pundits have a vested interest in – and inherent...  Read More
Our National Hygiene Conundrum
Current State: A confluence of events over the last several years has created the most challenging workforce environment to date for practices seeking to hire and retain dental hygienists (“RDH”).            The COVID Era caused middle-level providers across all healthcare verticals to leave their...  Read More
What is Private Equity ("PE")?  Anyone can Google this.  But what is it real role in the dental industry, healthcare and more broadly? In my experience, "private equity" (including Venture Capital) is simply the most expensive money that any business owner can borrow.  Beyond the capital costs -...  Read More
Wow, 2025.  I've been involved in group dentistry for 25 years...yikes.   Lots of things going on in the world.   How are events impacting practice valuations, sales and the health of the overall dental economy? This blog is intended to help demystify the valuation and transition process and...  Read More
Good morning fellow Townies! Just got back from the AAO event in Los Angeles and met with many fantastic practice owners and transition advisors.  Great event! A recurring topic of conversation was around the term "EBITDA" and what that represents in the context of a given practice's financial...  Read More
Hey Townies, So, after spending ~3 years in the behavioral health field I'm excited to be back in the dental industry.  Feels good. Please LMK if there are any particular topics you'd be interested in discussing here - practice valuations, transitions, partnerships, associateships, JV structures,...  Read More
Wow, late July already. I hope everyone has had a successful start to 2015 and is enjoying their summers thus far. I wanted to share some talks given recently at the . Speakers included DSO operators large and small, industry consultants, leading vendors, and many highly experienced doctors,...  Read More
Fellow Townies, 2014 has been a remarkably unremarkable year in many ways. A solid but resoundingly average year. Known challenges still abound - declining insurance reimbursement rates and ever increasing overhead costs. What challenges are folks not aware of and/or intentionally ignoring? ...  Read More
So, you're in the process of selling your practice? You may be receiving written offers with various titles - term sheet, proposal, Letter of Intent, etc. Which of these documents are substantive and which terms are legally binding if you execute the document? It is very easy to get confused. ...  Read More
For those who are not already subscribers to our newsletters, you can download our current white paper on practice transitions .  Read More
To be honest, I've been a derelict blogger of late. This blog has not been kept up as much as I'd like it to be. Looking back, I've noticed several posts have received a surprising number of views but with little or no feedback. I doubt this is because my posts are profoundly overwhelming or...  Read More
Soooo... You've got a friend, classmate, or personal doctor reference that is seeking to "share" practice space but maintain two or more legally independent practices under a common roof? This may look flexible, inexpensive, and/or easy but you really need to invest the time to think through the...  Read More
As a new grad, transition doctor, or established private practitioner you are most likely bombarded by a wide variety of vendors seeking to offer advice. These advisors can come from many fronts - dental school instructors, mentor dentists, supply and equipment vendors, practice lenders, dental...  Read More
Fellow Townies, First and foremost, we hope that 2013 treated your families and practices incredibly well. From our vantage point it was a peculiar year. We had the opportunity to review more practice transitions than ever but the outcome was skewed by a generally down year for most sellers -...  Read More
Fellow Townies, First and foremost, we hope 2013 has treated your families and practices as scrumptiously well as possible! It's been an odd year. 2012 was killer busy - election year, patient flow metrics, Tx plan acceptance, blah, blah, blah. 2013 seems to be a photo negative - at least as it...  Read More
Apparently not here in the Twin Cities...stepping into record high temps this week...ugh! Not sure what is in the water here in 2013 but we've encountered innumerable transition scenarios presenting challenges as it relates to existing, established associates. Common themes include, but are not...  Read More
Hopefully you all had a fun safe 4th and are focused on finished 2013 in strong form! This post is an open invitation to ping me Alex Trebek style about all things transition-related. I will then try my best to answer in the form of a (most likely run-on) question. Extra points for...  Read More
First, happy 4th of July week everyone! We've got incredible weather here in Minneapolis (for once!). Hope you and your loved ones can enjoy some time off. We wanted to share this post due to several recent encounters with multi-doctor practices where there was a solo owner and one or more...  Read More
Inasmuch as it may seem like there is a groundswell of dental "groups", dentists of all ages looking to buy/own/grow their own practices should be viewing the prospective wave of Boomer retirees as a net-positive on every level. Yes, the economy has been poor. Yes, school-related debt is as high...  Read More
As a follow up to my post regarding the next most influential factor on practice valuation is non-real estate overhead - i.e. your staffing, lab, and supply choices. Common Topics: Tenured Staff - It is not unusual to encounter practices with highly tenured staff that have received fixed wage...  Read More
The most common industry vernacular for expressing the valuation of a dental practice is as a percentage of annual receipts (collections) - e.g. "...I sold my practice for XX% of my receipts for the last twelve months..." Now, inasmuch as this is the long-standing tradition of discussing...  Read More
We get it - doctors like technology! That being said, there is a not so delicate balance between equipment decisions and the valuation of a practice. Items to consider: - One of the common misconceptions is that building a practice awash in high-buck technology - e.g. CAD/CAM, cone beams,...  Read More
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