Selling your dental practice is a significant decision, one that you’ve likely been considering for some time. Whether you're looking to step back from the demands of ownership, secure financial stability, or simply reduce the administrative burden that comes with running a practice, the choice to sell to a Dental Service Organization (DSO) is not one to take lightly. With multiple offers on the table, the decision becomes even more complex. You may be motivated by the desire to focus more on patient care, prepare for retirement, or take advantage of the support that a DSO can provide in growing your practice. Whatever your reasons, finding the right DSO to partner with is critical to preserving the legacy of the practice you’ve worked so hard to build.
Here are key considerations when deciding which DSO to sell your practice to:
1. Financial Offer vs. Long-Term Value
While a higher financial offer can be tempting, you need to examine the full financial picture, including future payouts and the structure of the sale. Some DSOs may offer immediate upfront payments, while others provide deferred payments based on practice performance.
- Upfront vs. Deferred Payments: Ensure you're comfortable with how much of the sale price is dependent on the practice's future revenue.
- Equity Options: Some DSOs offer equity in their organization, which could provide greater long-term value depending on their growth trajectory.
Balancing upfront financial gain with long-term earning potential is key to making a well-rounded decision.
2. Alignment with Practice Philosophy
Different DSOs take different approaches to running practices. It is crucial to choose one that aligns with your philosophy, especially regarding patient care.
- Clinical Autonomy: Does the DSO allow you to maintain control over clinical decisions, or will you be asked to adhere to strict protocols? Finding a DSO that supports your style of patient care is essential to keeping the practice's core values intact.
- Focus on Patient Experience: Inquire how the DSO plans to engage with patients. Will their systems increase patient volume without sacrificing care quality?
The right DSO should align with the clinical vision you've built over the years.
3. Post-Sale Employment Terms
Most DSOs expect practice owners to continue working for a period after the sale. The terms of your post-sale role will directly impact your satisfaction moving forward.
- Length of Employment: How long are you expected to stay on, and does that fit your retirement or future plans?
- Compensation Structure: Compare the salaries or production-based compensation each DSO offers during your post-sale employment.
Carefully consider how these terms align with your career goals and lifestyle, especially if you're not ready to retire.
4. Office Management Support
One of the major benefits DSOs offer is operational support, including office management. This can relieve much of the administrative burden and allow you to focus on practicing dentistry.
- Management Team: Does the DSO provide an experienced office management team to handle day-to-day operations such as staffing, scheduling, and supply ordering?
- Financial Oversight: Will the DSO assist with managing the practice's finances, including budgeting and accounting, so that you can focus solely on patient care?
- HR and Staff Training: Some DSOs offer human resources support, including hiring, training, and staff development. This can ensure your team remains strong and engaged through the transition.
The level of office management support can significantly affect your quality of life post-sale, so it's important to choose a DSO that offers robust, hands-on administrative help.
5. Impact on Your Team
Your team has been instrumental in building your practice, and their future should be considered when selecting a DSO.
- Retention of Staff: Will the DSO retain your team members, or are changes expected? A DSO that values staff continuity will help maintain the practice culture.
- Compensation and Benefits: Does the DSO offer competitive salaries, benefits, and opportunities for growth to your team? This can significantly impact staff morale during and after the transition.
Choosing a DSO that values your team can ensure a smoother transition and maintain stability in the practice.
6. Reputation and Culture
Research each DSO's reputation in the industry and with other practices they've acquired.
- Dentist Satisfaction: Talk to other dentists who have sold their practices to the DSOs you're considering. Are they satisfied with the transition, support, and ongoing relationship?
- Patient Retention: How has the DSO's acquisition affected patient retention? A DSO that maintains strong relationships with patients after acquisition can ensure the long-term success of your practice.
A DSO with a positive track record and a culture that aligns with your values is key to ensuring your practice thrives post-sale.
7. Operational Changes Post-Sale
Each DSO takes a different approach to managing practices after acquisition. Understanding what changes they plan to make can help you determine which DSO will be the best fit.
- Technology and Systems: Will the DSO implement new practice management systems or software? Consider how these changes will impact daily operations and the learning curve for your team.
- Supplier Contracts: Will your vendors or suppliers change? Some DSOs have national contracts that could affect the products and services your practice uses.
- Marketing and Patient Communication: DSOs often have marketing strategies in place. Consider how involved they'll be in patient communication, branding, and outreach.
Being aware of operational changes ensures that you're prepared for what's to come and that these changes will maintain the flow of your practice.
8. Support for Growth and Expansion
Growth support might be important if you're looking to stay with the practice after the sale.
- Technology Investments: Does the DSO invest in technology and innovations to keep practices competitive?
- Expanding Services: Some DSOs support expanding services like orthodontics, implants, or cosmetic dentistry, which could increase your practice's revenue.
If growth is a priority for you, choosing a DSO that fosters practice expansion is crucial.
When choosing between multiple DSOs, looking beyond just the highest financial offer is essential. Consider the long-term value of the deal, how closely their philosophy aligns with yours, and what support they provide for office management and operations. Additionally, the future of your team, the DSO's culture, and your own career goals post-sale should all play a role in making the right decision. Taking the time to evaluate all these factors will ensure that you select the DSO that offers the best financial deal and upholds the legacy of the practice you've worked so hard to build.