BulletProof Dental Practice podcast

A weekly podcast by Dr. Peter Boulden and Dr. Craig Spodak, designed to help you grow your practice through two pillars of success; Systems and Marketing

Blog By:
kelston

Text ‘bulletproof’ to 345345 to stay in the know about upcoming book release and Bulletproof Summit in fall 2018!

Key Takeaways:

    
• Should you have a DSO?
    
• If you don’t have a DSO and you’re a doctor owned practice, who can you sell to? You can only sell to other licensed dentists in your state, and that’s a very narrow, deflated market that is getting smaller every day. If you have a DSO your market is the world. 
    
• A DSO deal with established DSO might pay 5-7x EBITDA and is a low-risk deal. 
    
• A private equity deal will require ongoing involvement, and is higher risk, so may pay very high single digits to double digits. 
    
• Private equity deals are performance based. 
    
• There’s an evolution and consolidation in the dental marketplace. The evolution is from doctor owned single practices to DSO’s. The market is being flooded with private equity funds as it allows non-dentists to make money in the marketplace. 
    
• The market saturation of DSO’s is about 10%. There is a lot of runway, and the industry is very fragmented. This means that saturation is a ton of value left to harness in the dental market. 
    
• Seek out education about how the market is changing so you can react and best position your organization.
    
• Ten years from now there will be very limited opportunity for solo practitioners. If you have eyes set on being a solo practitioner, you need to understand the transition and have a plan. Only the rock star practitioners will thrive on their own.
    
• Patients are becoming more and more demanding. Consumers don’t really care who owns their dental office. 
    
• DSO’s are in the third generation of progression. 
    
• The highest valuation in the DSO industry is Deca Dental. 18.2x!
    
• DSO’s are trying to implement one-stop shopping. There’s a lot of upside as a practitioner in working within a one-stop shop style practice.
    
• It’s not just corporate DSO’s looking to get into the dental marketplace, existing industry suppliers are finding ways to reach consumers directly.

References:

The Cleveland Clinic Way by Tony Cosgrove

Tweetables:

“Peer pressure makes dentists better.” Dr. Craig Spodak