With our partners having a combined 100+ years of experience, we understand that every practice transition isn’t the same. Whether it’s a one buyer-one seller transition, one buyer buying into a partnership, a partnership of buyers buying a large practice, two practices merging into one, the purchase of patient charts, the sale to a DSO, etc., we’ve been there done that! Many transitions include technical income tax related issues as well as specific issues that impact the financial concerns of both parties. At Dental CPAs, we offer many CPA transition Services for dental practice transitions, for the buyer and the seller.
We are often approached by either the owner or a practice looking to offer a partnership opportunity to their associate or the associate approaches us when they are offered a partnership opportunity by their employer. While many aspects of this transition are covered in are Buyer Representation services or Seller CPA services, they offer more complexities since the consulting we provide needs to go beyond the actual transition. What we mean is we have to be concerned with the ongoing operations of the resulting partnership. For example, how will decisions be made, how will partners be compensated for their various tasks whether its clinical or management services and how will profits and\or losses be allocated. What happens down the road when one partner is ready to retire or god forbid, one partner dies or becomes disabled?
Once again, this type of transaction is usually more complex than the traditional complete practice acquisition or sale and requires knowledgeable advisors to walk the doctors through the process to avoid any landmines that may exist.
Unless you’ve been living under a rock over the past five to ten years, you know that DSOs are very active in the dental community and are actively looking to grow and expand by acquiring practices. we know they are aggressively seeking out dentists and their practices with emails, texts, calls, faxes and other sales literature. We even see DSOs competing and bidding for the same practice!
With our years of experience and knowledge in dental practice transitions, we are perfectly suited to assist the owner who is either looking to transition out of their dental practice within a couple of years, OR the owner who is isn’t ready to give up the handpiece and is considering cashing in on some of their equity. There are so many aspects to an DSO offer that many potential sellers simply aren’t equipped to fully evaluate these offers. We strongly suggest that anyone considering a DSO sale should consult with an advisor well before seeking offers, at least ninety days prior to seeking offers. We strongly suggest that the potential seller seek offers from multiple DSOs and let them know you’re looking at different DSO offers. This is just an example of what a potential seller needs to know when considering a DSO sale: