#32: The Build-Up Weekly

Author

Trevor Kimball
January 19, 2024

*Welcome to the 32nd 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,

Happy Friday! I hope you’re all doing well.

We kicked off our January webinar series last night, and I had a blast. In fact, I thought I should share some of the info with you here today - hoping, of course, that you’ll join us for the two remaining sessions next week!

Here’s what I’ve lined up for this newsletter:

  • 2024 Dental Practice Sales Market Trend #1

  • Securing Your Financial Future in 2024 [Webinar Invite]

  • Better Case Acceptance [Webinar Invite]

Let’s go!

Dental Practice Sales Market Trend #1

In the webinar we’ve been promoting, I walk the audience through two major dental market trends that will shape the practice sales market in 2024.

In today’s newsletter, I want to walk you through the first trend.

The Trend: Practice Ownership is Declining

Ok, so this is old news.

Fewer dentists own practices today than they did 20 years ago. No big surprise. Here are the numbers.

From the ADA’s Health Policy Group

In 2005, 84.7% of all practicing dentists (except those working in government, the military, community health clinics, etc.) were practice owners.

Today, that number is 72.5%.

Again, this isn’t surprising if you’ve been paying attention to the headlines.

Here’s another fact that shouldn’t be too surprising:

That Decline is Concentrated Among Younger Dentists

Here are the figures:

You’ll see that the most significant decline was associated with the youngest cohort of doctors. If only 8% of dentists under 30 are owners, most (92%) are working as associates.

Are they working for private doctors or for practices affiliated with DSOs and other corporate groups?

In California, only 9% of dentists are affiliated with DSOs - but a full 30% of the new dentists (less than 5 years out of dental school) are working for practices affiliated with DSOs.

On the other side of the spectrum, if you’ve been out of school for more than 25 years, then there is only a 4% chance that you are working for a corporate group or DSO.

Now, are those young dentists STAYING with the DSOs and other corporate groups?

No.

Younger Dentists Are Leaving DSOs More Than Private

Here are the figures:

This was new to me, and I thought it was fascinating!

“Affiliated Private Practice” means a practice that is privately held (not a community clinic, etc.) and affiliated with a DSO or corporate group.

Look at the difference between these two groups.

48% of the new dentists working for DSOs are planning to leave. The large majority of those are planning to join unaffiliated practices (what I would call private practices).

Compare that to the 8% of doctors leaving private practices.

That’s quite a difference. And I don’t think it’s hard to see why…

More Satisfaction Reported in Private Practice

Here’s the survey data:

Across almost every major category, dentists in private practice settings were more satisfied than dentists working for DSOs and other corporate groups.

Interestingly, there was no real difference in the level of debt between new dentists associating in the DSO world vs the private world.

So what does that mean for me?

Well, to get my full take on all of this (and see how the huge number of retirement-age dentists factors into all this), join me next week for our webinar (see the invite below).

But I think what is most interesting for me is that it confirms the high number of younger doctors I see who are looking for practices and ready to stop associating.

Yes, ownership is declining. But from my perspective, the trend indicates that young dentists are putting off practice ownership rather than actually working as an associate forever.

In fact, it mirrors what we’re seeing with so many doctors delaying retirement. I believe the average retirement age for dentists is around 69 years old - much older than 20 years ago.

At the end of the day, the market is very solid, with many buyers looking to get into quality practices.

And if you have a practice you would like to find a buyer for, please connect with one of our practice advisors for a confidential discussion here.

Webinar Invite: Smart Exit Strategies and Options for Dentists

To kick off the year, we’re hosting an exciting webinar series on “Securing Your Financial Future in 2024.” It’s my 2024 market report and a close look at some of the transition options available to dentists today.

There are more transition options than ever before.

This comprehensive webinar will help you explore those options and how they affect your practice in today’s market.

Here’s what we’ll be covering:

  • The Market in 2024: Interest Rates, Inflation, and More

  • The Dental Market in 2024: Two Trends Shaping Sales

  • Surprising Math: Run the Numbers Behind Private Sales, DSOs, and Private Equity

  • Understanding Practice Value Drivers: What Buyers Want Today

Join us as we explore your transition options in 2024 for any transition before January 2030!

Don’t miss this great opportunity to plan your future.

Two Dates Remaining!

  • Wednesday, January 24th at 6PM

  • Friday, January 26th at 9AM

Presented by Bill Kimball, DDS & Darren Hulstine & Trevor Kimball, PhD

Better Case Acceptance Webinar [Invite]

I’m at it again - this time for another webinar with our friends over at DocSites!

This time, I’ll be talking about case presentation.

It’s 1 hour long, you get 1 CE credit, and it will help you produce more in your practice. Why not join??

We’ll be covering how to:

  • Improve Patient Interaction With Effective Case Presentations That Promote Comfort and Acceptance.

  • Enhance Communication Skills To Address Treatment Needs, Overcome Objections, and Build Patient Trust.

  • Explain Financial Details Thoroughly.

  • Understand the Role of Your Website in Patient Decision-Making.

  • Leverage Testimonials and Visual Evidence To Build Trust.

1 CE Credit

Date/Time: Wednesday, January 31st @ 6 pm PT

Duration: 1 hour, Zoom Meeting

And with that, I hope you enjoyed the 32nd edition of The Build-Up Weekly!

With best wishes to you and your families,

Trevor Kimball, PhD

p.s. please use 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