Introduction
Dr. V was a pediatrics and orthodontics dentist in Cedar Park, TX – a small but fast-growing community. Dr. V had been in this location for almost two decades and was beginning to think about retirement. He wanted to be ready when the time came and ensure his staff was taken care of so he began to talk to brokers.
Dr. V first tried to sell with another broker, but they were unable to sell the practice. One day, Dr. V got a FedEx package from Practice Transitions Group (PTG) about Austin dental practice transitions and decided to give them a call.
Challenge
Dr. V’s financials were in great shape, however, his practice was running on some old systems for managing patients and staff. PTG knew this would cause some delays in the due diligence process, but also knew that the practice was solid overall and this would not hold up a sale in the end.
Our Approach
Dr. V called Thomas from PTG and told him about his previous experiences. Thomas listened to Dr. V and was able to see the problems right away. The other broker was worried about going for a quick sale to an associate and did not understand the options in the Dental Service Organization (DSO) marketplace or how to push value. Thomas knew he could get Dr. V both the financial value he deserved and find a good culture fit for the practice.
Dr. V said about PTG: “They do a lot of listening. And as you can imagine, I can do a lot of talking. But it’s not only the fact that they’re listening. You’re dealing with people who are honest and genuine. They’re not just trying to sell you something, sell the brokerage service. They are trying to help you achieve for your practice what you want to achieve.”
Roadblocks
As the Texas dental transition was in process, the buyer ran into some credit and integration issues. They had to push back the closing date. Fortunately for Dr. V, Thomas was able to negotiate an additional $50,000 for the delay.
Solution
Dr. V ended up getting five offers on his practice – allowing him options for choosing the best financial deal structure and cultural fit. Dr. V talked to the CEOs of the various DSOs and other doctors in their organization to find one that would not micromanage his practice and that shared his vision. He connected with a DSO that also specialized in pediatrics and orthodontics and that could continue to serve his patients well. In addition, this DSO offered 80% cash, 10% more than the next best offer.
Results
Dr. V sold his practice to a DSO for $3.753M compared to the $2.4M the original broker had quoted him.
Dr. V was grateful for the help from PTG: “Thomas kept working right up until the ink dried, you know, and even more importantly, after the ink dried. I still have contact with him weekly checking in on how it’s going.”