Sell your practice
Many dentists are now opting to sell their practices to dental support organizations (DSO). The benefits and values the DSO business model offers makes sense to dentists and can help them to achieve their long-term goals and cut out administrative burdens. What’s more, there are no standard terms involved in these transactions, such as assuming or not assuming a dentist’s liabilities; paying all cash up front or paying out over a given term; or what information will be used to calculate a dentist’s future payroll or commission.
For those dentists who are considering taking the leap, the key is to understand each term in the contract and the responsibilities involved so that they can hold DSOs accountable as necessary. This bears both on pre-acquisition and post-acquisition decisions.
If a dentist is near the end of his or her career and looking to take some of the burden off their practice (but not yet ready to retire), selling to a DSO might be the right move. That is because a good DSO helps make the day-to-day operations easier so that dentists can focus on their clinical time. As a further advantage, DSOs can be a great resource with respect to collections, accessing supplies at reduced costs, strategic marketing, and increasing profitability.
If a dentist is approaching retirement, DSOs provide several benefits over selling to an individual buyer. Not only are DSOs willing to pay more than private buyers, but they cash out with a higher evaluation and allow dentists to work the same or reduced schedules after the sale. This expedites their transition time while removing some of the unknowns from retirement planning.