In the ever-evolving landscape of dental practice sales and Invisible Dental Support Organization (IDSO) partnerships, a fundamental factor reigns supreme: Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA). However, the art of calculating dental...
Insights
The Doctor Matters: The Doctor’s Personality and Plan Impacts Practice Value
Practice value is enhanced by the potential that a doctor can create and articulate, not just about their practice. Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) is important (Net Income, see LPS EBITDA Memo), but a doctors’...
Another Do It Yourself Deal Saved; $2.0+ Million More for the Doctor
Doctors are naively attempting transactions directly with IDSOs and leaving money on the table, every single time. In this case study, we achieved an extra $2.0 million net for the doctor after eight bidders weighed in on the practice’s real value. I had to check on...
Two New OMS IDSOs Launched Last Week
Two more OMS IDSOs were launched last week, one national and one regional. OMS consolidation bidders now 15+, some with better strategies than others. I predict one of these new ones will soar and one will flounder. The two new OMS IDSOs launched last week are very...
Selling Your Dental Practice to Private Equity
The Truth About Private Equity in Dental Practice Consolidation For some unknown reason, dentists seem to think that Private Equity (PE) is the only buyer of dental practices. In reality, while PE is the financial sponsor of many Dental Support Organizations (DSO) and...
Learn WHY Thousands of Dentists Quietly Partnered with IDSOs in 2022
Record Number of IDSO Partnerships Created by LPS in 2022, But Why? Invisible Dental Support Organizations (IDSO) become a doctor’s silent partner by purchasing 51% to 90% of a practice for cash up front. Doctors continue to lead their practices as owners for years or...
The #1 Best Recapitalization in History is Coming This Month (by Multiple of EBITDA)
The #1 Best Recapitalization in History is Coming This Month (by Multiple of EBITDA) While #2 achieved almost a $2.0 billion dollar recap value after 30 years, the new #1 will achieve over $2.0 billion in about 36 months. And yes, LPS did partner them with over 100...
The #2 Largest Recapitalization of 2022
One of the largest IDSOs in the country announced their recapitalization last quarter. It has yet to close due to the U.S. regulatory review of their new investor; to our knowledge the first entry of a Sovereign Wealth Fund into the U.S. IDSO consolidation frenzy....
Two Newish, Growing GP Groups Will Be Big Winners
When an IDSO is backed by proven financial sponsors with multiple IDSO experience, the risks are lower, and the odds of success and large returns are much higher. The boom in dental consolidation has attracted all types of investors. Some have a pedigree in dental...
Two New Dental Trifecta IDSOs Started Last Week Too!
The Dental Trifecta IDSO space is relatively uncrowded and can achieve rapid growth due to partnering with three specialties, instead of only one. These two new IDSOs are both regionally focused. Like the OMS above, I predict one wins, one does not, very specific...
Just For Fun, LPS Got a Proctology Exam (Audit)
Many people (mainly the little dental advisors who are jealous of LPS) do not believe the transaction volumes and values achieved and advertised by LPS. Soooo, we decided to quash our detractors by retaining a Top 5 international accounting/audit firm to confirm my...
General Dentists Have Multiple Options in IDSO Partnership
Larger LPS practice clients today are achieving values of 15 to 20% above 2019 value levels. As inflation and interest rates continue their ascent, driving up practice operating costs, all practices are at risk of profit margin compression and thus potential practice...
The Impact of Inflation and Higher Interest Rates on Practice Values
If you are like the 200+ doctors I talked to in May, your costs are going UP. Conversely your reimbursement rates from payors and your fee schedules are NOT going up. This usually results in some very simple math; your operating margins and profit (EBITDA) is...
NOW is the Time to Beat 2022 Tax Increase
LPS Completed over $91,000,000 of Transactions for Happy Clients, YESTERDAY. Yes, you read that correctly. Just yesterday, LPS completed transactions for nine very happy clients from Denver to Philadelphia. All were at record values for a total of over $91,000,000....
Young Doctors Only: Why Now, Not Later? The Biggest LPS Challenge
The young doctor’s alternative to growing by himself is partnering with a group of experts worth billions of dollars who want to help him create value. He is a great dentist, but his new IDSO partner has created billions of dollars in investment value. It takes six...
Silent Partners and the Invisible DSO | Invisible DSO’s
Of the over $200,000,000 in transactions LPS will close in Q2 2021, all have an earn-out component. An earn-out pays doctors additional consideration for future performance in the year or years, after an initial transaction. I quit college in 1978...
Unbelievable Practice Values? Our Five Secret Strategies Exposed! (Part 1)
Some doctors are skeptical when we list the extraordinary values, we have achieved for our doctor clients over the last year. When the “industry standard” valuation is 80% to 100% of collections, doctors are amazed when shown multiple...
Silent Partners and the Invisible DSO | Dental Support Organization
IDSOs are already in your town or will silently arrive shortly. They will be a friend if you join one or a foe if you do not. You will either benefit from an IDSO’s practice support resources and financial upside, or compete with many of them. It is only a matter of...
Silent Partners and the Invisible DSO | Invisible DSO
Of the over $200,000,000 in transactions LPS will close in Q2 2021, all have an earn-out component. An earn-out pays doctors additional consideration for future performance in the year or years, after an initial transaction. I quit college in 1978 to take my first job...
Taxes for Dental Practice Monetization in 2021/2022; Even Uglier Than You Think
Taxes are going up. Now may be a time to consider selling a PART of your practice to an Invisible Dental Support Organization. This may be the last time to pay only a 20% tax rate on the proceeds. LPS urges all dentists to fully understand the potential impact on the...