In this Thriving Dentist episode, Naren & Gary share insights on what successful DSOs do, and how you can go about building one of your own, or, take these concepts and apply them in your own practice!
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There are many successful practice models you can find in dentistry today. solo practice, multi-owner/associate practice, multi-office practice groups are some to name a few.
Expanding your practice to add on an associate or another practice location is a great way to create financial independence and grow your practice.
Today, the term “DSO” holds a negative light among dentists. However, there are great DSOs out there. Even if the thought of building a DSO isn’t on your radar any time soon, you can learn a lot by doing the things that successful DSOs do!
Listen to the episode to find out how to successfully build a DSO!
Time Stamps
Thriving Dentist Clinical Tips Segment
- 00:03:15 – Clinical Tip by Markus B. Blatz, DMD, Ph.D. on “Bonding to Zirconia”
- 00:07:01 – Gary busts a myth about DSO’s
- 00:08:42 – What are the different kinds of formats and flavors of DSO’s?
- 00:13:43 – The 6 goals your practice needs to achieve if it’s fine-tuned.
- 00:16:19 – Gary talks about the investment community
- 00:16:58 – The difference between venture capital and private Equity
- 00:20:15 – What is a practice worth when a doctor goes to sell that practice?
- 00:23:10 – How is the valuation model different when you sell your practice to a DSO?
- 00:25:00 – What is the acronym EBITDA?
Q&A Segment
- 00:32:57 – Question 1 – Gary, I know that in the last few years, Private Equity has been very interested in Dentistry. Do you see that changing in the post-COVID 19 world?
- 00:36:44 – Question 2 – How many locations do I need to qualify for the higher valuations that I see in selling a DSO to a Private Equity Firm?
- 00:39:13 – Question 3 – When would it make sense to create an administrative support Team to provide business and admin support to my locations?
- 00:43:56 – Question 4 – Are banks willing to finance the purchase of future practices in my DSO?
- 00:47:36 – Question 5 – What is the biggest challenge in building a successful DSO?
Resources
Gary Takacs
Gary became a successful practice owner by purchasing a fixer-upper practice and developing it into a world-class dental practice. He is passionate about sharing his hard-earned insights and experiences with dental practices across the globe. As a dental practice coach, Gary provides guidance for dental professionals on how to create a healthier practice style that lets them deliver excellent patient care while reducing depending on insurance.
More importantly, Gary’s insights are not just based on theory – as a co-owner of a dental practice, he has first-hand experience in making this transformation from a high-volume and low-fee insurance model to a fee-for-service approach that is more sustainable and promotes a patient-centric and financially healthy dental practice, and he is dedicated to sharing this knowledge with other dental practitioners via the popular Thriving Dentist Show!