What is a Dental Trifecta?
The Dental Trifecta® is created when LPS assembles pediatric, orthodontic and OMFS 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 OMFS clients nationally. When an IDSO purchases the right practices in a region, we’ve proven that rapid, internal growth is created, increasing profitability and long-term gains.
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 Studies
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 of them in Salt Lake City (lots of kids!). 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.
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.