Do DSOs Pay the Highest Prices for Dental Practice
The price DSOs are willing to pay for a dental practice can look really, really enticing. It can seem like a no-brainer choice for a practice seller, but a well-informed seller would seriously reconsider. You have to look past this top line number to understand the terms and conditions that are associated with the offer to know where the bottom line will fall. The discrepancy can be alarming.
Today, we welcome Earl M. Douglas, DDS, MBA, BVAL to the podcast to educate us on DSOs. Dr. Douglas began his transition career in 1982 after selling his own dental practice. His company, ADS South, LLC, provides consulting services in the Southeast, from Louisiana to Washington, D.C.
Dr. Douglas has extensive training and experience in both clinical dentistry and business. He has created professional software for the valuation and analysis of dental practices which is used by many professional brokers and lenders. He is a contributing author for Dental Economics and he has presented at numerous seminars for Dental Economics and state dental associations. He is also a member of the Practice Valuation Study Group.
Questions addressed on this episode:
- Do DSOs really pay as high as 100% of a year’s gross collections?
- If I don’t get the sale price all up front, what are the contingencies?
- Why should anyone look this deal over when it seems like a no-brainer?
- How can DSOs justify paying so much?
- What is a better alternative than selling to a DSO?
Learn more about Dr. Douglas online at: adssouth.com or contact him via email at: Earl@ADSsouth.com or by phone at: 770-664-1982
Learn about dental practice transition specialists in your area by messaging: office@longinthetooth.info
Long in the Tooth provides non-clinical gems of wisdom for older dental practice owners. Learn more about this podcast at: longinthetooth.info