#26: The Build-Up Weekly

*Welcome to the 26th edition of The Build-Up, where we deliver insights and inspiration for dentists on every stage of the private practice journey. If this email was forwarded to you, you can click here to subscribe.

Dear friends and colleagues,

Good morning, and happy Friday!

Time always seems to speed up as we approach the end of the year, and 2023 is no exception. I can’t believe we’re already approaching mid-November.

I want to extend my particular gratitude today to all the military veterans in the dental community and, in particular, to Alison Villarruel - our incredible transaction coordinator.

I was in Washington DC last week, visiting good friends I haven’t seen in years. Walking amongst the monuments on a crisp autumn day, it’s hard not to get emotional about this country, the progress we’ve made, and the principles we stand for. Thank you to all our Veterans for your courage and sacrifice.

Here’s what I’ve got lined up this week:

• 1 CE Credit - Join Me on Wednesday (Upcoming Webinar)

• Evaluating Offers to Buy Your Practice: Do the Math

• Annual Calendar Planning: Looking at 2024

Let’s go!

Secrets to Retaining Current Patients While Attracting More New Patients

Wednesday, November 15th @ 6 pm PT (8 pm CT / 9 pm ET) 

👉 Register Here

Building and maintaining a successful dental practice is not only about attracting new patients but also about ensuring every patient - old and new - walks out with a smile.

Join us for an insightful webinar where we dive deep into the basis of dental practice success: the patient experience.

In this 1 hour webinar, you’ll learn:

• How Building a Great Patient Experience Can Be Your Most Effective Growth Tool

• Utilize Patient Testimonials and Reviews to Resonate with Potential Patients

• Front Office Strategies That Set The Tone for Lasting Patient Relationships

• Techniques to Ensure Your Practice Stands Out Authentically In a Competitive Landscape.

Plus, I’ll try to keep it fun. I’m not sure how many of these ideas are really ‘secrets’, but I do think I have some out-of-the-box ideas that can be super helpful in building that great patient experience. And bring your questions!

👉 Register Here

Plus, even if you can’t make the event, register anyway, and you can watch on demand!

Do The Math

So you list your dental practice for sale (perhaps with one of our fantastic brokers), and you receive two offers. Great!

You now have to choose how to proceed.

If you're working with one of our brokers, they will walk you through the process and help you weigh the pros and cons - but they can’t decide for you.

The final decision rests with you.

But what if you didn’t have a great team behind you?

In fact, what if you hadn’t even listed your practice for sale?

Let’s now picture, for the sake of argument, that you aren’t working with a broker - in fact, you haven’t even listed your practice for sale.

There are so many different folks out there now soliciting dentists to join their groups or get (fully or partially) acquired by their DSOs, and one of the arguments I see regularly is simple: they can give you more money than a private buyer.

Can they actually pay more than a private buyer? It depends on the terms!

Terms are everything, and the first way to analyze is simple: do the math!

The total value of the offer (the big number) is the result of a math problem that you need to clearly identify.

Here are some factors that contribute to the equation:

Time

1. How many years will it take to realize the entire amount (the total value) of the offer?

2. If I continued working in my practice and then sold to a private buyer for the same number of years, how do the numbers compare?

3. How long will I need to continue working if I want to see the total value of the offer?

Work

1. What would happen if I stopped working or couldn’t work? What happens in my practice now?

2. What happens if I don’t hit production targets? What happens in my practice now?

Taxes

1. Am I happy to defer compensation? What could I do with the cash if I had it now?

2. Are there tax advantages to spreading out payments? How significant are they? If you continue working in your practice and then sell, what are the year-over-year tax considerations of that move?

Continued Work and Lifestyle Choices:

There are other, non-math questions as well, of course.

Some doctors may wish to continue working, albeit without the responsibilities of practice management.

Others might be excited by the prospect of joining a group of entrepreneurial doctors.

Still, others may get nauseous even thinking about being an employee and working on someone else’s terms.

These personal preferences significantly influence the decision-making process.

But it starts simply: do the math!

I am not against corporate group and DSO offers. They can be good options! But my point is simple: do your own math and make sure you’re comparing apples and apples.

And if you’re ready to have a conversation with a practice sales professional, get connected with your local Integrity Practice Sales broker here.

Annual Calendar Planning

2024 is fast approaching, and now is the time (if you haven’t already) to review the calendar next year and check the number of production days in each month.

If you have a large number of production days in the month (especially if that month is against another month with lots of production days), it might be an excellent time to plan a vacation.

If the month is short production days, it may be wise to plan now to add one.

Every year is different, and everyone’s schedule is different. But now is the right time to plan for 2024, no matter what schedule you keep.

Here’s an example of a practice open Monday to Thursday that takes all federal holidays off. In red are the number of production days in each month.

Here’s a calendar you can print and apply your own schedule and holiday plan to see how your production days line up. Now is the time!

And with that, I hope you enjoyed the 26th edition of The Build-Up Weekly.

With best wishes to you and your families,

Trevor Kimball, PhD

p.s. please consider using the link below to share our newsletter. 🙂 

These Six Mistakes Can Cost You Six Figures

Download our free guide “6 Mistakes to Avoid for a Successful Practice Sale” here. It’s material that I’ve covered in this newsletter before, but - if you’re contemplating a practice sale - the advice in this guide is crucial.

And if you’re ready to have a conversation with a practice sales professional, get connected with your local Integrity Practice Sales broker here.

It’s worth having a conversation, no matter your current transition plans.

You never know what you’ll discover together.