What is an IDSO?
Doctor Owners Make the Difference
Invisible Dental Support Organization or (IDSO) is a term we coined which describes a DSO in which the doctor remains as an owner in either the practice or the parent for years or decades. Doctors continue to lead their practice with their brand, team and strategy, but benefit from the resources of a larger silent partner. Doctors sell 51% to 80% of their practice for cash at today’s long term capital gains tax rates, but have continuing upside value growth via ownership.
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
IDSO vs. DSO
There are two types of DSOs. The first is the “branded” DSOs you’ll find at every strip mall with employee doctors. Then there are the Invisible DSOs whose business model is different. These groups of DSOs invest in great doctors across the country and believe the local brand is most powerful and that having a local doctor/owner running those practices is far more valuable than an employee doctor. By retaining owner doctors, IDSOs are more profitable and productive than employee-run offices of the branded, chain DSOs. Unlike branded DSOs, an Invisible DSO does not micro-manage nor attempt to homogenize their partner practices. Each practice is unique. That’s where we come in – finding your practice the perfect partner.
To Join or Not Join an IDSO?
Here are some of the more common reasons many doctors decide to join an IDSO:
- Getting cash right now at low tax rates;
- Diversify/liquefy your primary asset;
- Continue leading your practice as an owner.
Reasons Why Some Don’t:
- Lack of Knowledge
- Fear of Change
- Concern for Partners & Staff Members