In this episode of the Financial Flossing Podcast, host Ross Brannon sits down with Chip Fichtner, Principal of Large Practice Sales (LPS), to delve into the world of dental practice transactions. Chip has an impressive track record of completing $612 million in transactions in 2022 with 31 Invisible Dental Support Organizations (IDSOs) across 29 states. He shares his expertise in maximizing value in the dynamic dental industry.

Summary and Key Takeaways:

  • LPS specializes in facilitating transactions between dentists and IDSOs, enabling dentists to grow their practices while maintaining autonomy.
  • The growing interest of young dentists in partnerships has accelerated the consolidation of the dental industry, providing more opportunities for dentists to take chips off the table.
  • Dentists should consider IDSO partnerships as a strategic approach to capitalize on more significant partners’ resources and growth potential.
  • LPS stands out by representing dentists exclusively, avoiding conflicts of interest, and presenting all available options to maximize value for their clients.
  • The presence of multiple qualified bidders is instrumental in driving up practice values, and LPS consistently aims to bring at least six bidders to the table.
  • Understanding the calculation of EBITDA and skillfully negotiating factors like cost differentials and earnouts can significantly impact practice value.
  • While the dental industry is undergoing consolidation, with IDSOs and invisible DSOs experiencing rapid growth, complete consolidation akin to the medical field is unlikely.
  • Dentists seeking partnership opportunities can connect with LPS through their website to schedule an introductory call and explore potential pathways for their practice.
  • By tapping into Chip Fichtner’s extensive experience and the expertise of LPS, dentists can unlock the total value of their dental practices in an evolving market.

Chip Fichtner is the Co-Founder of LPS, a leading advisory firm exclusively focused on dental practice transactions. With over 40 years of experience in building, buying, and selling companies across diverse industries, Chip brings invaluable insights to help dentists navigate the complexities of partnerships and achieve optimal value in their transactions.

Chip Fichtner