DSO & Corporate Sales
Like any business, the market for dental practices is changing. Part of the recent trend is a rise in Dental Service Organizations that seek to create economies of scale to drive growth in the space. Because of their bundling approach, these corporate entities may pay a higher price for a practice than would be gained in a private doctor-to-doctor sale. Our firm has years of experience with large and small sales and negotiations with these big players.
There are a lot of legal and economic issues involved in sales to a DSO. Among these are:
- Will you retain any ownership in your practice? If so, how and when can you get out?
- How long will you be required to work at the practice after closing?
- How much control will you retain over how the practice is run?
- Key Restrictive Covenants with the Practice
DSO sales are subject to fairly exhaustive initial planning stages. You have to produce financials and a detailed letter of intent is created. It is absolutely critical that the biggest issues are addressed up front. How much will you get paid and when? How long do you have to work and for how much? These items just cannot wait.
Over the years, we have successfully negotiated for the doctor’s best interest with some of the biggest players in the space. It takes experience to know the pitfalls, ups, and downs of these highly complex and long term deals. You need experience on your side.
Because of the breadth of these transactions, a steady, organized approach is needed. These deals take time and effort. The reward can be huge and life-changing, but a lot of thought and care needs to go into making your decision. We are here to help you execute the decision that is right for you.