1) Introduction
Dr. F built a thriving periodontal practice in Texas. He enjoyed the work but spent the weekends driving south to care for his aging mother. After another year of six-hour road trips, he decided to prepare his periodontal practice for sale so he could move closer to his family.
2) Challenge
PTG initially qualified a buyer who wanted to purchase the practice for a second location. However, the buyer got cold feet and backed out during the Letter of Intent (LOI) negotiations.
3) Our Approach
Dr. W was one of the buyers that responded. She worked as a traveling periodontist while she looked for a practice to acquire. She knew that finding a periodontal practice for sale is rare – they’re only on the market every couple of years. So Dr. W traveled to avoid non-competes and so that she could make an offer quickly when she found the right fit.
When PTG learned about Dr. W’s thoughtful approach, they knew Dr. F’s impeccable practice could be a perfect match.
4) Road Blocks
Dr. W voiced concern that Dr. F’s last year of revenue was higher than average due to delayed care from COVID and, like most buyers, she did not want to overpay. Two procedures used to treat chronic gum issues were up over 40% because patients had not received treatment in 2020. Dr. W worried that this revenue would disappear once people started visiting the dentist more regularly again.
Thomas knew this was not the whole story, however. He showed Dr. W the financial history before COVID where earnings were strong and how Dr. F’s fees and revenue have been increasing every year even without COVID impacts.
5) Solution
Thomas was not deterred by this setback and knew he could find a great buyer for Dr. F’s practice through PTG’s extensive buyer list. Thomas combed through the list, and pulled doctors that he knew could be a good fit based on Dr. F’s offerings and growth potential.
6) Results
PTG negotiated the practice sale for 80% of recent revenue and 100% of historical revenue. Dr. F passed along his legacy to an incredible practitioner whom he trusts and retired with his family to South Texas.