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Maximize Your Value When Selling To A DSO

Thinking of Selling or Affiliating with a DSO Group? Don't go at it alone. At 1st Med Transitions, we know that Selling to a DSO without the right expertise and guidance can be a daunting task. There are a number of factors to consider and our Advisors are well aware of the benefits and the pitfalls to avoid. As the DSO market has grown, so has our relationships with local, regional and national DSO and Private Equity firms.

When selling to or affiliating with a DSO, you have the potential to gain a much larger selling value for your practice than in a traditional doctor-to-doctor transaction. We have seen as much as 125% to 300% of yearly collections. However, it is important to keep in mind that there is more to a sale, than just the price. A DSO transition will typically require a seller to continue to work at the practice post sale for a pre-determined amount of time (usually 2 - 5 years). This length of time will also affect how the sales price is disbursed to the seller.

If you have a larger practice, there is a good chance you have already received unsolicited offers or been contacted from DSO buyers attempting to negotiate with you directly. We understand this can be tempting, but there is a chance that you will be missing out on more favorable deal terms/structure and a higher overall sales price. Partnering with or selling to a DSO is an enormous decision for a practice owner and not something you should go at alone.

When you sell to a DSO with 1st Med, we make sure to walk you through every step of the process.

STEP #1  Sales Consultation

This is the first and most important step in the process. We will discus your goals, objectives and timeline for sale and of course, answer any questions you may have. We will asses your current situation and determine if your practice is a good DSO candidate. We'll inform you on what DSOs are looking for and the different deal structures we are actively seeing in the marketplace.

STEP #2 EBITDA Practice Valuation (no cost)

If we think you are a good DSO transition candidate, your transition advisor will request financial's, practice reports and a practice profile to be provided. We will work with you to determine a current EBITDA valuation as this is the main metric DSOs use to value your practice. Many of our industry competitors charge between $7K and $15K for their EBITDA analysis. At 1st Med, we never charge up-front fees and only earn our commission when your practice is sold!

STEP #3 DSO Outreach

We'll package and confidentially present your dental practice in a professional manner to potential DSO buyers. Our goal is to maximize the interest and pool of potential buyers for your dental practice. The more competition we can generate, the higher the potential for sale and maximum enterprise value.

STEP #4 Review Offers

One of the most overlooked part of the Dental Practice Sales process is the sales negotiation. We'll assist you in reviewing multiple offers and help determine which is the best fit for you personally and your practice moving forward. Remember, not all offers are created equal and the same goes for DSOs.

STEP #5 Due Diligence

Once you have determined the best deal structure and culture for your practice, we'll accept the LOI and move into Due Diligence. The difference between a closed transaction and a failed one, can many times comes down to the attention to details. DSO Buyers are more sophisticated than independent doctors and the due diligence process is typically more thorough. We will work with the buyer on quality of earnings, detailed practice reports, and sales contract negotiations.

STEP #6 Closing

There are a number of aspects that lead to a successful closing - deal structure, non-competes, escrow, representations and warranties and transitions agreements. We stay on top of every step in the process from the marketing, letter of intent, due-diligence to the purchase & sale agreement and ultimately closing.

If you are considering selling your dental practice to a DSO, or just want to get a sense of what a potential DSO sale would look like for you and your practice, we would be happy to discuss further.

To get started, complete our Dental Practice Sales Consultation Form Here and you can schedule a call with one of our Senior Transition Advisors.

Why Sell With 1st Med?
  • Save With 5% Commission
  • Free EBITDA Analysis
  • Get 6x to 9x Multiples
  • DSO Transition Experience
  • Access 40+ DSO/Private Groups

Have Questions?

Our Transition Advisors are happy to answer any and all of your questions.

Michael S. Furlong

Senior Transition Advisor


(800) 815-0590
All Discussions Are 100% Confidential


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29 +

years of industry experience

255

satisfied clients and counting

$223 Million

in closed practice transactions

What Our Seller's Have To Say

  • Dr. Brian Glover, DDS

    sold his practice in Raleigh, NC

    "I can honestly say that I have zero regrets.

    I can’t imagine why anyone would go with one of the large ‘Old School’ brokers that wanted to charge me twice as 1st Med Transitions."

  • Dr. Najib Adi, DMD

    sold his practice in Gainesville, VA

    "The professionalism, patience and tolerance David demonstrated... was remarkable.

    His commitment to our practice well-being and our professional future well-being was truly unmatched"

  • Dr. Martha Murphy, DDS

    sold her practice in Gaithersburg, MD

    "Mike is proof that you don't need a broker who lives in your immediate area. I would highly recommend him and 1st Med Transitions."

  • Dr. Ricardo Guillen, DDS

    sold his practice in Portland, TX

    "I am very grateful to 1st Med Transitions and, especially, to Mr. David Goldstein for the relentless effort he dedicated in selling my dental practice in a very short amount of time."

  • Dr. Sonia Smith, DDS

    sold her practice in Fort Worth, TX

    "Being my first time selling a dental practice... I'm so glad I chose 1st Med Transitions and would recommend them to anyone who wants to sell their practice"

Our Listing Process Is Simple

GET STARTED
  • 1

    Initial Consultation

    Complete our Sales Consultation Form Here and one of our transition advisors will contact you to discuss your sales goals.

  • 2

    Practice Review & Valuation

    Your Transition Advisor will listen to and discuss your specific professional and sales goals and review the financial and clinical aspects of your practice. With your input, we will determine a reasonable market value and listing price for your practice.

  • 3

    Market Your Listing

    We will market your practice for sale through our multiple marketing channels to reach the maximum potential buyers and generate as much interest as possible!

Questions?

Ask an expert?

To speak with a Transition Advisor Call Us: (800) 815-0590 or

Click Here To Get Started