Ask the Experts

Are you thinking of selling to a DSO?

Transcript:

Ask The Experts - Providing insight for commonly asked transition-related questions

Today's topic: Are you thinking of selling to a DSO?

There are over 55 DSOs in the United States, and that number is growing. So how do you know who you should call when you don't know the difference between DSO A versus DSO B? It would take you countless hours of phone calls or in-person meetings to identify the best DSO. And if you contacted them directly, you might only be considering that one, without knowing all of the others that might be interested in your practice.

Choice understands each DSO's unique model and structure. We consult with you one-on-one to identify which factors are most important, and then introduce you to those DSOs matching your preferences. Unlike most of our competition, who work on behalf of the DSO, we represent only you and look out solely for your interests.

If, after meeting with the DSOs, you decide that the path is not for you, or you expected a higher value, you simply say no thank you. Whether you decide to sell to the DSO or walk away, Choice charges you nothing for this service.

We often hear, "Shouldn't I just sell to the DSO my friend sold to?" A DSO offering the best overall package then may not be the one offering the best deal now. You see, DSOs have earmarked funds to acquire practices within certain borders. They also have teams that perform due diligence and implement the transition phase. Therefore, how aggressively a DSO pursues a practice at any given time is based on the availability of their funds, teams, and the number of other practices they are pursuing. By knowing which DSOs are currently motivated, Choice is able to secure our clients the best possible deal.

Some of our competitors, who charge the seller a commission, have told potential clients that if a DSO is paying the fee, the seller will get less for their practice. This is simply not true. That's because when determining the value of a dental practice, a commission is a one-time expense — not factored into the DSO's EBITDA calculations — meaning it doesn't affect the purchase price. Time and again, we've been brought into deals after a DSO has submitted their best offer, and we still were able to secure the client a higher purchase price and better terms.

Choice knows the importance of protecting your confidentiality and preventing your patients and staff from finding out about a potential sale. By allowing Choice to pre-screen the DSOs instead of directly reaching out, we can protect that confidentiality until you decide which DSO to proceed with.

Thanks for watching. For additional information on this topic or any other transition related questions, contact us at 877.365.6786.

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