1) Introduction
Dr. D was a seasoned dentist with a steady revenue but wanted a strategic partner to unlock the full potential of her practice. Having witnessed her father’s missed opportunities in a previous dental practice sale without representation, she was driven to make informed decisions and refused to leave money on the table.
2) Challenge
Dr. D felt she reached the limit of her practice’s growth as a single-location entity. She recognized the need for a partner with expertise in marketing, operational streamlining, and administrative management to maximize her practice revenue. The challenge was then to find the right partner and negotiate a deal that reflected the true value of her practice in its current state.
3) Our Approach
After contacting Practice Transitions Group (PTG), Dr. D spoke with Lauren Wheeler. After a couple of calls, it became evident that Dr. D was well-informed and had specific goals for her practice. Lauren committed to a streamlined onboarding process, and in just a few months she was ready to enter the market.
Despite being a relatively smaller practice, Practice Transitions Group secured three significant offers from three prominent Dental Support Organization (DSO) groups. Each offer presented a unique opportunity, allowing Dr. D to choose the one that best aligned with her vision and goals.
4) Road Blocks
Lauren presented the offers to Dr. D, explaining the nuances of each option. The first option was a top DSO with a standardized approach. Another option was a leading DSO partner in the Midwest, where Dr. D was located, but it lacked a clear track record. The third offer was a compelling opportunity by a DSO in a nearby region, backed by a private equity investment firm.
After visiting with the private equity-backed DSO and meeting their Chief Dental Officer, Dr. D knew that they were the right fit. The offer, while competitive, also provided a larger equity piece and favorable turnout options.
5) Solution
Dr. D sold her practice for far more than she thought she would, making her proud of the deal. She felt confident knowing she did not leave money on the table. The PTG team made sure the negotiation also included a five-year market lease with renewal options, preserving the value of her real estate assets.
6) Results
Dr. D’s journey highlights the importance of early planning and seeking professional representation during dental practice transitions. Her proactive approach, driven by lessons learned from her father’s experience, led to a connection with Practice Transitions Group which ensured a successful partnership with a sophisticated group, maximizing the potential of her practice.
In partnering with the DSO through Practice Transitions Group, Dr. D not only secured a lucrative deal but also positioned herself for continued growth and success.