Episode Summary:

In this episode of The Dental Boardroom Podcast, host Wes Reid kicks off a six-part series on dental partnerships. Whether you’re in a partnership or considering one, this series is packed with insights. Today’s episode focuses on the pros of dental partnerships, with a deep dive into how financial efficiencies, particularly in overhead costs, can benefit multi-doctor practices. Wes breaks down the different categories of overhead costs—labor, labs, supplies, facility, marketing, and admin—and explains which are fixed versus variable, providing a clear picture of how partnerships can reduce costs while increasing profitability.

Key Points:

Introduction to the Partnership Series

• Six-part series focusing on dental partnerships: pros & cons, valuation, legal structures, success elements, buy-in timeline, and partnership agreements.

Financial Efficiencies of Partnerships

• Explains fixed vs. variable overhead costs in dental practices.
• Categories of overhead: labor, labs, supplies, facility, marketing, and admin.

Breakdown of Overhead Costs

• Labor: Generally fixed, with potential variable elements like bonuses tied to production.
• Labs and supplies: Variable.
• Facility, marketing, and admin: Mostly fixed.

How Partnerships Reduce Overhead

• The financial advantage of having multiple doctors to share fixed overhead costs.
• Example scenario: How overhead costs decrease when a second doctor joins a practice.

Selling a Dental Practice

• Introduction to PracticeOrbit.com as a modern solution for dental practice sales, featuring various selling options.

#DentalPartnerships #DentalPractice #DentalBusiness #DentalOverhead #DentalValuation #PracticeManagement #DentistLife #PartnershipSuccess #FinancialEfficiency #PracticeOrbit

Episode Summary:

In this episode of the Dental Practice Sale Podcast, Wes Reed dives into a key question for dentists looking to sell their practices: Should you use a broker? Wes offers a fair and balanced breakdown of six compelling reasons to hire a broker and six reasons why it might not be the best fit for every seller. He emphasizes the importance of understanding the process and context around using a broker, whether you’re selling to a family member or a specialized buyer. Wes also shares insights on navigating the matchmaking and closing phases of practice sales and how brokers can provide crucial support — or, in some cases, unnecessary costs.

Key Points:

Why Use a Broker?

• Access to a larger pool of potential buyers (the broker’s Rolodex)
• Expertise in creating an appealing practice prospectus
• In-depth knowledge of the practice sale process
• Brokers act as intermediaries, simplifying communication between parties
• Connection with specialized bankers, attorneys, and accountants
• Brokers are highly motivated to close the sale and get paid only upon completion

Why Not Use a Broker?

• Brokers are highly motivated to close the sale, which may prioritize speed over quality
• Rolodex size and network reach may not always be as extensive as promised
• Brokers may overpromise sale prices to secure exclusivity agreements
• Exclusivity clauses can lock sellers into paying commissions even if the broker does little to close the deal
• Broker fees, typically ranging from 7-10%, can significantly reduce the seller’s final profit

#DentalPracticeSale #SellYourPractice #DentalBroker #DentalBusiness #PracticeSales #DentalPractice #BrokerProsAndCons #DentalIndustry #DentistLife

What are the most common delays that prolong a practice sale?

In general, the people who hold up deals are banks and landlords.

But there are steps both buyers and sellers can take to prevent these delays and shorten the timeline for a dental practice sale!

On this episode of the Dental Practice Sale Podcast, Dental Attorney Matt Odgers joins host Wes Read to continue their conversation on expediting a practice sale.

Matt and Wes discuss how to fast-track legal and clinical due diligence, explaining why it’s crucial to negotiate vendor contracts and lease terms before you list your practice.

They also share 4 ways to determine the value of your practice and describe the relationship between list price and closing timeline.

Listen in to understand why buyers and sellers should both reach out to the bank early on and find out if Practice Orbit can help speed up the sale of your dental practice.

Topics Covered

• The legal documents a seller needs to prepare for a practice sale
• Why it’s crucial to negotiate vendor contracts and talk to your landlord before you list your practice
• What a seller can do to expedite the clinical due diligence of a practice sale
• What a buyer can do to accelerate the timeline for a practice sale
• 4 ways to determine the price of your practice and how the list price impacts the closing timeline
• Common delays in closing a practice sale associated with banks and landlords
• Why it’s the seller’s responsibility to negotiate the lease terms a buyer might need
• How much faster you can close a practice sale if it’s staged well
• How Practice Orbit accelerates the process of selling your dental practice
• Why you need a ballpark valuation of your dental practice and how to get it done for free
• 2 reasons you might use Practice Orbit to sell your dental practice

Connect with Matt Odgers

Odgers Law Group

Odgers Law on LinkedIn

Connect with Wes Read & Drew Phillips

Practice Orbit

Email wes@practiceorbit.com or drew@practiceorbit.com

Practice CFO

Practice CFO on Instagram

Practice CFO on Facebook

Practice CFO on YouTube

Resources

Dr. Kevin Kenny on the Dental Board Room Podcast

The Role of Escrow on the Dental Board Room Podcast