Case Studies
LPS creates exceptional values for clients due to our creative approach to finding them great partners. When necessary, we even identify investors to create new IDSOs using our clients as platforms. We are also regularly contacted by doctors who have been negotiating directly with IDSOs, without an advisor to help them achieve higher values with better terms.
- General Practice in MO
- General Practice in CA
- Orthodontist in FL
- Orthodontist in CA
- Pediatric Specialist in TN
- Pediatric Specialist in UT
- Endodontists in GA
- OMFS in FL
- OMFS in NC
- Perio in SC
- Perio in TX
A 42 year old doctor in a Midwest county of 20,000 wanted to accelerate his practice growth by purchasing competitors. He sold 60% of his practice for $3.0 million in cash to an IDSO partner to which we had sold their 37th practice. They provided capital and management support. Two years later, he now has four offices and his practice has tripled its collections and he still owns 40% of the much larger practice. They IDSO now has over 400 practices.
Larger doctor in Orange County with about 30% Medicaid had a three-year horizon for an exit. We partnered him with one of the largest IDSOs in the country at an exceptional value.
The doctor came to us about to sign a $19 million dollar offer from a solid IDSO to which we had sold practices in the previous 90 days. We knew they would pay more. But we also knew that with the proper bidding contest, he could get at least 2x that value. We created a 10 bidder contest among the ortho only, multispecialty Dental Trifecta IDSOs. He closed at $42.5 million with 90% in cash, last quarter. The $19 million dollar bidder came up to $30 million in the first round and did not make the second.
A fifty year old doctor had a five office practice which had long term associates and a 20% annual growth rate, even during COVID. We did not like the offers we were achieving for him. We signed up four other orthodontists in the region, contacted a dental experienced Private Equity firm and convinced them to use all of our clients as the platform for a new Dental Trifecta in three states. Doctors all achieved values of 25% above what they were worth individually.
The young doctor had negotiated an $8.0 million dollar offer from a great Dental Trifecta IDSO we knew well. We told him we could get him at least $3.0 million more. We did.
Very large pediatric practice was impacted heavily by COVID. We partnered them with an IDSO owner of ten nearby ortho practices at 24x EBITDA. Internal growth rates of both the ortho and pedos are up over 20% in 2021. Six months later, we sold the two largest OMFS practices in the state to the same group. The IDSO partnered with 48 LPS client offices in the state in 12 months.
A two doctor Endo practice had an offer in hand from an Endo only group he really liked and wanted to join. We suggested he could end up there, but he needed to understand all of his options and a bidding contest would drive up the offer from the group he liked. We had a six bidder contest including two multispecialty groups which were the high bidders. He got $2.0 million more, net of the LPS fee, from the group he wanted originally.
The two doctor owners focused on All on X cases were growing at 20% per year. The practice was a large marketer and had professional management. We felt it was perfect to become the platform for a new, national implant focused IDSO. We introduced them to nine bidders: OMFS Only, Multispecialty and Dental Trifectas. At the end of the bidding, we helped an investor we knew well start a new IDSO using our clients as the platform at a record value with huge equity upside. They will make $100 million more in the next three years or earlier.
A two doctor practice with doctors about 60 thought they were nearing the end of the game and wanted to sell 80% for cash and keep 20% in equity. Once they met an IDSO to which we had sold its platform practice, and understood the equity upside, they decided on a 51/49% deal. They will make another $25 million in three years or less.
Great doctors were ready to sign a deal with a newer IDSO. Their deal had no earnout. We negotiated a $2.0 million earnout and a higher value.
A doctor nearing retirement had a great practice and no associate. We identified a large partner to which we had sold a dozen practices. They had 10+ GP practices surrounding him and knew a young perio who could become his replacement over time. Referrals and an associate helped his practice grow 25% in the first year.