Over the past three decades, thousands of doctors have sold their practices to a dental support organization (DSO) or quietly partnered with invisible DSOs (IDSOs). American Dental Association reports issued in 2023 indicate more dentists are affiliating with DSOs....
Insights
Increase the Value of Your Practice Real Estate With an IDSO Partner
When doctors own their practice real estate and partner with an invisible dental support organization (IDSO), the value of their real estate can increase substantially. Dental practices have large investments in tenant improvements which historically decrease the risk...
Practice Value Update for 2023 and Impact of Environment, Social and Governance (ESG) on Dental Practices
Invisible Dental Support Organization (IDSO) partnerships with dental practices of all types continued to accelerate during 2023. Many LPS clients achieved new, record high values. A large influx of new IDSO bidders empowered by billions of dollars of fresh global,...
Q4 2023 Dental Practice Value Update; Plenty of Bidders, Values Stable, But…
While several formerly active IDSOs have stopped or reduced their activities in seeking new partners, they have been replaced by multiple new and recapitalized legacy IDSOs with literally billions do invest. Multiple IDSOs with capital and capacity (debt & equity) are eagerly bidding for LPS clients at record values.
Dramatic IDSO Changes in Q4; High Interest Rates Can be GOOD and BAD!
LPS has completed IDSO partnerships for our clients with almost 40 different IDSOs in 30 states in the last couple of years. Values this quarter will continue to hit records, but certain legacy IDSO bidders have stepped on the brakes to practice criteria and values....
Why Doctors Choose IDSO Partnership vs. Remaining Independent in 2023
Ultimately, if LPS is unable to find the ideal IDSO partner for our doctor clients at an exceptional value, doctors are never obligated to do anything at all. They can learn about all of their options, confirm our estimated value and fully understand if an IDSO...
Understanding and Improving Dental Practice EBITDA
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...
How Long Does it Take to Sell a Dental Practice?
Doctors have multiple options to monetize all or part of their life’s work. Depending upon the practice and the doctor’s goals, they may choose a doctor-to-doctor or doctor-to-associate transaction, a 100% sale to a DSO, or an Invisible Dental Support Organization...
The Dental Trifecta, Revisited
TWO YEARS AGO, Dental Economics published my article about the potential dramatic impact of dental trifectas on pediatric specialists, orthodontists, and oral surgeons. In 2019, Large Practice Sales (LPS) helped start the first of what became the largest invisible...
How Much Do Dental Practices Sell For?
Discover the Value of Your Practice without Cost or Obligation Dental practice values vary widely based on a range of factors including size, geography, specialty, doctor age, growth rate, payer types, procedures performed, and a number of other tangible and...
5 Things to Know Before Selling Your Dental Practice to a DSO
Doctors functionally have three ways to monetize their dental practice. Sell part or 100% to a doctor or associate Sell 100% to a Dental Support Organization (DSO) Partner with an Invisible Dental Support Organization (IDSO) and monetize part of your practice now, but...
Private Practice vs. DSO or IDSO: The Key Differences & Benefits
The ADA Health Policy Institute (HPI) recently released a research report on the accelerating trend of dental practice consolidation. Notably, the ADA HPI report identifies that the most consolidated segment of U.S. dental practitioners is Orthodontists. Over 18% of...
Timing Your Exit: When is the Ideal Moment to Sell Your Dental Practice?Â
OR, Should You Monetize a Part of It For Cash Now and Exit Later? The Age Factor in Practice Valuations The most important factor in a 100% practice sale to a doctor, or selling part of your practice to an IDSO, is your age. The farther you are past 55, the less...
Implant Focused Practice Valuations Update 2023
Practices with at least 30% of collections provided by Implant and All on X related cases have more IDSO bidders in 2023 than they did in 2022. There are now at least five Implant IDSOs eager to partner with implant focused practices nationally. This is addition to...
Dental Practice Valuations: The Complete Guide for 2023 Values
Dental practice valuations have not yet been significantly impacted by inflation, higher interest rates and bank fiascos. However, for many practices, values and options may be impacted in the coming months and quarters for practice transactions which require bank...
Tax Consequences of Selling a Dental Practice: Simplified Guide to Considerations in IDSO Partnerships
Big Disclaimer: I am not a CPA or tax lawyer and not giving legal or tax advice! LPS clients are introduced to expert CPAs and tax lawyers which can help you understand the full tax implications of selling your dental practice in an IDSO partnership. In the end,...
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...