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Insights

The Mutual Benefit of Silent Partners Investing in Dental Practices

Every Dental Support Organization (DSO) has a different model to manage their groups of dozens or hundreds of “affiliated” dental and specialty practices. Some acquire 100% of practices and operate under a single brand, others start practices from scratch and many...

Synergies

One of the benefits of the right Invisible DSO as your new silent partner is that they are highly motivated to enhance the growth of your practice via synergies with other practices in which they have invested in or will invest in your area. Three recent examples of...

Top 10 Reasons to Join an IDSO or NOT…

Top 10 reasons to join an IDSO: 1) Diversify and liquify your primary asset: As the U.S. enters into its worst recession in history, cash is king. An average LPS client takes at least $5,000,000 in cash off the table by selling 60% to 90% of their practice for cash at...

LPS Update: Practice Value Volatility; Good News and Bad News

We review financial data on about five practices per day for doctors who have requested an estimate of the value of their practices to an Invisible DSO in today’s bubble. Most doctors take the value number under advisement and continue building their practice, hoping...

Cash Now, Long Term Plan, Practice Growth,  Wealth Creation? All Four!

Cash Now Every doctor has different motivations for considering an IDSO partnership for their practice. Some are interested in selling part of their practice today to secure their financial future with a large sum of cash in their pockets at Long Term Cap Gains rates....

Understanding Invisible Dental Support Organizations (IDSO)

Understanding Invisible Dental Support Organizations (IDSO)

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...

NEW: Big Silver Lining in the COVID Cloud for Larger Practices

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...

Latest ADA Forecast for 2021 Practice Values; Not Pretty…

This week, the ADA Health Policy Institute, the economic research affiliate of the American Dental Association, released their updated forecast for 2021 practice collections. While their forecast of U.S. dental practice collections for 2020 was revised upward to only...

Coronavirus Impact on Practice Values; Important Tips and Buyer Update

In our bulletin on Sunday March 8 (Click Here to Download), we pointed out that declines in practice revenue and EBITDA could have lasting effects on practice values. Fortunately, in speaking with multiple IDSOs this week, they have confirmed that they will consider...

Silent Partners and the Invisible DSO | Dental Practice Transitions

Silent Partners and the Invisible DSO | Dental Practice Transitions

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...

The 2020 Actual Transaction Results & The 2021 Forecast!

Several large LPS transactions will by design push into early 2021, but it was still a $300,000,000+ year for Large Practice Sales vs. “only” $200,000,000 in 2019. COVID be damned! Newer IDSOs stepped up and filled the void of the larger, legacy IDSOs who spent time...

COVID Impact on Practice Values

Despite COVID, many Invisible Dental Support Organizations (IDSO) are continuing to quietly  acquire interests in great practices of all specialties across the country. At the moment, in most cases, our clients are achieving 2019 values of 2X to 3X collections for...

Silent Partners and the Invisible DSO | Transaction Results

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’...

Taxes, More Taxes and Diversification of Your Practice Portfolio

LPS Completed $160,000,000 of transactions in the last 96 days! Many people (doctors and IDSO executives) have chastised me for my “alarmist” forecasts in early, and throughout 2020, that higher taxes on rich dentists are inevitable in 2021. The recent election...

New Taxes on Practice Monetization in 2022 and Portfolio Risk

New Taxes on Practice Monetization in 2022 and Portfolio Risk

Taxes are going up. Your Tax Rate Could Exceed 50% in 2022. LPS urges all dentists to fully understand the potential impact on the net value of your practice in 2021 vs. 2022 and beyond. Now may be a time to consider selling a PART of your practice to an...

Silent Partners and the Invisible DSO | Coronavirus Practice Values

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...