Learn the Value of Your Practice in a Silent Partnership
Dentists can secure their financial future through partnerships with invisible dental support organizations
Thousands of dentists of all specialties will either sell 100% of their practice to another doctor or to a traditional dental support organization (DSO) in 2023. Smart doctors will also consider a partnership with an invisible dental support organization (IDSO), which will achieve a significantly higher value for those who qualify. IDSO partnerships are not for short-term retirement or transition, but rather can be a long-term wealth building partnership for doctors as young as 30.
Hundreds of IDSOs have been quietly partnering with thousands of doctors for over three decades. The trend is accelerating in 2023. Billions of dollars have been invested in IDSOs in just the past 12 months. Sophisticated, global investors —new to dental consolidation — are eager to reap the high returns generated for both investors and doctors. In the last 90 days, practices advised by Large Practice Sales (LPS) have received a record number of qualified bids at new high values for general practices and all specialties.
An IDSO becomes a doctor’s silent partner by purchasing 51% to 90% of a practice for cash now at today’s low tax rates. Doctors continue to lead their practice as an owner with their brand, team, strategy, and full autonomy for years or decades.
The doctor’s work/life balance is improved by the IDSO handling banking, accounting, payroll, benefits, tax, legal, compliance, credentialling, and vendor and payor negotiations. The IDSO will not, however, attempt to micromanage or homogenize your practice to meet some corporate standard. IDSOs pay less than independent dentists do for supplies, technology, and benefits, and they are getting reimbursed at higher rates from payers than dentists are in many cases.
IDSOs are eager to help your office grow bigger and better faster — not change your successful practice. You still make all of the critical decisions including who to hire and fire, what to pay your team, what procedures to perform, and what labs and supplies you use. It is a true partnership, not corporate command and control. IDSOs can also enhance recruiting and new patient acquisition strategies with their own internal recruiting and marketing resources.
The right IDSO partner will also potentially increase the value of your retained ownership dramatically. Doctors have achieved billions of dollars of gains on equity positions in their IDSO partners, some exceeding 1000% over time.
Some IDSOs will also fail! It is critical to use an experienced advisor in negotiating an IDSO partnership to ensure that you have multiple, qualified bidders from which to choose your future partner. More bidders drive up values and options for doctors. Doctors who attempt an IDSO partnership as a “do it yourself” project inevitably leave money on the table every time.
While not every practice will qualify for IDSO partnership, those that do can achieve exceptional values in today’s heated market. Some LPS clients have a dozen or more qualified bidders and LPS has completed multiple transactions in the last 12 months at over 4x collections for exceptional practices.
IDSO partnership enables doctors to create liquidity and portfolio diversification by monetizing a part of their life’s work. They also still retain significant, long-term future upside in practice ownership. Best of all, with an IDSO partner reducing doctors’ and their teams’ administrative burdens, doctors gain time to focus on leading their team, patient care, and attaining a better work-life balance.
Doctors are urged to contact LPS to receive a no-obligation, no-cost practice valuation and to learn what IDSOs are already in their community today.
Large Practice Sales
844-506-0368
From Decisions in Dentistry. September 2023; 1(8):26.
