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...
Insights
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)
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...
How LPS Increases the Value of Your Practice by 10% Or More; Three Letters: QoE
We nationally advertise that Large Practice Sales (LPS) achieves almost unbelievable values for dental practices of 2X, 3X and even 4X COLLECTIONS. These are all real examples of recent transactions, not historical outliers. The great practices earned their values...
The Brief Moment in Time for 2019 Practice Values, Or Wait 3+ Years – Dental Practice Recovery from Coronavirus
In 2019 we urged clients to monetize a part of their dental practices at what we correctly predicted was the peak in values. Over $200,000,000 (two hundred million dollars) of now exceptionally happy clients (ages 38 to 67) listened to us and are sitting on a pile of...
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
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...
Creative Structures Capture Value for “Embedded Growth” Potential in Desirable Practices. Lock in Values Now to Reduce Risk.
Summary: Your rapidly growing practice can be monetized at today’s value, yet still pay you for value not yet realized in a creative structure based on your results AFTER the initial closing. In the booming economy we are experiencing, many doctors have embarked on...
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’...
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...
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...
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...
Sometimes You Win for the Wrong Reason
Sometimes You Win for the Wrong Reason Since October of 2018, I have published articles in multiple Dental publications, spoken at conferences, held dozens of webinars and published multiple white papers on ONE TOPIC. The topic was that we (Large Practice Sales) were...
Large Practice Sales 2019 Recap and Happy New Year!
The year of 2019 was spectacularly successful for dentists of all specialties. LPS clients achieved extraordinary values through partnerships with strong Invisible Dental Support Organization (IDSO) partners. Doctors put tens of millions of dollars in their pockets at...
Do-It-Yourself Investment Banking is Just as Dumb as Do-It-Yourself Root Canals!
I wouldn’t do my own root canal! Why would you attempt the biggest transaction of your life without a specialist? Each of the doctors experienced failed deals. All of them received acceptable, not the best offers, but they could not close a transaction and put cash...