The LPS Engagement Agreement is simple and only three pages. When engaging LPS to find you a qualified IDSO partner, doctors give LPS a six-month exclusive period to introduce you to prospective IDSO partners. If we complete a transaction, you will pay us a percentage of the total value of the transaction, payable at closing. If we cannot find you a great partner at or above the value we have initially quoted, you may decide to do nothing and owe us nothing. You are never obligated to complete a transaction in any scenario.
Dental Trifecta
The Dental Trifecta® is created when LPS assembles pediatric, orthodontic and OMS practice clients in the same region and partner them with a single IDSO concurrently. Practices are not merged, but instead create lasting referral relationships benefitting all doctors individually and through their equity ownership in the IDSO. This short – and long-term practice value enhancing process was created by and is available only to LPS clients. It increases the initial and long-term values of our pedo, ortho, and OMS clients nationally. When an IDSO partners with the right practices in a region, we’ve proven that rapid, internal growth is created, increasing profitability and long-term gains.
What is a dental trifecta?
A Smart Defensive Strategy
The Dental Trifecta® is a smart defensive strategy. What if one or more of your primary referral sources were acquired by an IDSO and referrals were directed to your competitors and not you? The Dental Trifecta® offers doctors valuable referral sources from other practices within the regional group of practices. This protects and insulates your practice from competitors while increasing new patient flow and overall practice and group profitability as well as a larger upside in your retained equity ownership.
The many benefits of an LPS Dental Trifecta include:
- Higher initial practice values in a transaction
- Higher exit values; recession-resistant model
- Referral relationships increase growth
- Gain new captive referral sources as additional practices are added to the group
- Increase patient flow and group profitability over time
Dental Trifecta Case Study
A young IDSO with a smart financial backer asked us to design the perfect IDSO structure. We suggested a Dental Trifecta in growing areas with a high concentration of kids per household. We partnered them with our client, the largest ortho practices in two western states where the group also acquired the largest oral surgery practices in the two states. Over the next 18 months, we helped them partner with 84 LPS client offices with 48 offices in a large, western city in just nine months. . This group will monetize their efforts at a record exit value in the coming months. Doctors will achieve returns of 3x to 7x on their retained equity in less than three years, depending upon when they joined the group. We have since helped other investors form Dental Trifecta IDSOs to benefit our clients from coast to coast.
“When LPS included my Pedo practice in a Dental Trifecta with other LPS clients, the value of my practice increased by over 50%. They earn their fee.”
Dr R.S., Pediatric Specialist
What is a Dental Trifecta?
Some IDSOs focus solely on partnering with pedo, ortho and OMS practices in the same area. When LPS can provide an IDSO with all three of these clients in the same region, we can often achieve higher values for all client doctors. We have proven this theory dozens of times. In addition, the Dental Trifecta groups tend to pay higher values for LPS Dental Trifecta clients as the IDSO will achieve higher exit values due to the captive referral sources. Doctors are never required to refer to other practices in the IDSO group.
What is a Dental Surgical Trifecta?
There are now several groups interested in acquiring only Endo, Perio and OMS practices in the same regions. They believe there is referral synergy in this structure, similar to that of the Dental Trifectas.
How is LPS Compensated?
LPS has a very unique compensation structure which ties our interests directly to the doctor’s. First and foremost, LPS is paid nothing unless a transaction is completed. LPS fees are only paid when you get paid. There are no valuation fees, retainers, expense reimbursements or compensation other than a percentage of the consideration you receive, at closing. The fee varies based upon the size of the transaction. LPS is paid zero on your future compensation for providing care. Knowledge of the buyer/partners and multiple transaction experience is LPS’ most valuable currency. We close transactions or we do not get paid a dime.
IMPORTANT NOTE: Unlike the little advisors, LPS is only paid by our doctor clients, NOT by the IDSOs. LPS sole interest is achieving the highest initial and long term values for our clients with QUALIFIED IDSOs.
How Long Does the LPS IDSO Partnership Process Take?
From the time we receive the data from you necessary to properly market your practice to closing is typically about six months. Some transactions take longer and some less.