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

Bulletproof Dental Practice Podcast Episode 71

Hosts: Dr. Peter Boulden & Dr. Craig Spodak

Guest: Brian Colao, Dykema

Key Takeaways:

·        Dentistry is undergoing a great evolution and a great consolidation. 

·        There’s also massive disruption within the workspace of dentistry.

·        There’s a lot of fear out there, and it doesn’t have to be that way. 

·        A big part of the fear is lack of information. If you can understand what the changes are, why they’re happening, and what the legal options are, there is no reason to fear change.

·        DSO’s allow dentist owners to sell their practice to the whole world, not just to another dentist in your state.

·        If you’re a solo office, you don’t necessarily need to be a DSO. If you plan to grow and are looking for the largest buyout possible then a DSO setup will be a great benefit.

·        After 3 offices you’ll generally see more favorable tax treatment under the new code. Check with your CPA for specifics on your practice.

·        A lot of specialists are forming DSO’s as well. 

·        GP DSO’s are buying specialists as well. 

·        As the whole market starts to consolidate to DSO’s, strictly referral-based services will start to lose market share. 

·        Technology is making specialty procedures a lot more doable for general dentists. 

·        The next 3-4 years will include a lot of consolidation, but right now there’s room for everyone at the table. 

·        After 5-10 years the marketplace may change, and some opportunities won’t be there anymore. 

·        Seeing 14-15x offers will most likely become less common over the next couple years. Brian predicts 6-7x offers will be the norm. 

·        There is tremendous demand from private equity to buy dental practices.

·        There is a bit of a gold rush in the dental industry; there’s high demand and low supply.

·        Don’t give in to FOMO; sell when it’s the right time for you.

·        For organizations under 5 offices, it costs around $20,000-$25,000 to set up a DSO.

·        For restructuring DSO’s, 8 out of 10 times Dykema can rework the original DSO into a better structure.

·        Dykema’s 5^th Annual Definitive Conference for Dental Service Organizations is coming up July 18^th-20^th. 

o  Register NOW with and use code “BulletProof” to receive discounted registration for $350!

References:

Private Equity is Pouring Money Into a Dental Empire