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FREQUENTLY ASKED QUESTIONS

  • WHAT DO YOU DO?

    • The short answer is that we help doctors to sell their practices. We work with you to derive the highest value out of your legacy practice while finding the best fit for your culture and goals. We support you throughout the entire process of valuing your practice, selecting the right DSO/DMO to partner with, navigating the due diligence period, negotiating favorable contract terms, facilitating a successful closing, and providing resources and solutions post-closing. You have spent years investing in your Practice and we will help you to realize that optimal return on your investment – whether for support for growth in your market or for retirement planning.​

 

  • WHY SHOULD I CONSIDER AFFILIATING WITH A DENTAL SERVICE ORGANIZATION (DSO)?

    • Access to capital for growth - if you are in a growing market and don't want to bear the entire cost of expansion of existing offices or new locations.

    • Business systems support - shifting the responsibility of Human Resources management, payroll, accounts payable, recruiting, credentialing, and other non-clinical responsibilities leads to improved work-life balance, cost efficiencies, and ability to focus primarily on patient care.

    • Clinical practice consistency - Doctors maintain control of their clinical decisions and patient care.

    • Leadership support for office managers - they will have access to peers and growth opportunities and you are not dependent on only one person to lead your Practice.

    • Attract new providers - the percent of dental school seniors planning to join a DSO increased from 12% in 2015 to 30% in 2020 (ADA News March 10, 2022), primarily due to lifestyle balance and rising interest rates, making private practice partnership less appealing. 

    • Take action on the trend - "Dentist practice ownership continues to decline, from 84.7% in 2005 to 73% in 2021, according to the latest data from the ADA Health Policy Institute. While solo practices continue to decrease, groups and dental support organizations continue to increase. According to the ADA, this accelerating shift on practice modality can be attributed to at lease three factors: 1) movement of the baby boomer dentist population toward retirement; 2) surge of younger dentists in the workforce; and 3) COVID-19 pandemic (GroupDentistryNow.com Sept 2022).

    • First step towards retirement - affiliation provides you with an exit strategy that is financially beneficial and supportive of your timeline to retirement, reducing stress in your remaining practice life.

 

  • WHAT IS A DSO?

    • A DSO is an acronym used in dentistry and can stand for a Dental Service Organization, or a Dental Support Organization, or even a Dental Specialty Organization. The most common definition of a DSO is an organization that partners with Doctor Owners to take over the non-clinical responsibilities of the practice - human resources, payroll, hiring, accounting, marketing, and other administrative tasks.  Under a DSO structure, Doctors are able to focus on their clinical practice and patient care, without the burden of worry for the business as a whole.  There are a variety of DSO platforms and Island Coast Advisors will be able to assist you in determining the right fit for you and your Practice. 

 

  • WHAT ARE THE DIFFERENT TYPES OF BUYERS?

    • STRATEGIC - Strategic buyers are those that are already in the space. They will be both practitioners who are growing their practices through acquiring other practices that are a fit with their current practices, including geographically and culturally. There are a number of Strategic buyers that are Private Equity backed, so there is some blurring of the lines between those two types of buyers.

    • PRIVATE EQUITY GROUPS - Private Equity buyers are the classic financial buyers. They are typically groups of investors who use their money, and often debt (meaning borrowing money to partially fund the deals), to acquire privately held businesses and practices that they intend to streamline and grow. Very often they increase profitability through general and administrative cost efficiencies. That means centralizing the "back office" of scheduling, billing, and similar tasks for several offices. 

    • FAMILY FUNDS - Family Funds are a form of private equity in which a high net individual or family uses their own funds, or their funds plus debt, to fulfill a mandate they have established for their own business strategy.

    • SEARCH FUNDS - Search Funds are another facet of private equity. Typically, these are fronted by individuals who have gotten a prestigious MBA and either, while in the course of their studies made contacts with high-net-worth individuals who agree to fund their search for one or more target companies that they will then operate and grow, or they follow a similar path after their MBA and then work in the financial markets.

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  • DO YOU DO SITE VISITS?

    • Yes, we will be happy to travel to your Practice for onsite meetings, at your request. 

    • While we are able to provide you with dedicated advisory services remotely, we recognize the value in getting to know you and your Practice in your market. 

 

  • WHY SHOULD I CHOOSE ISLAND COAST ADVISORS?

    • Ability to effectively identify needs and goals of the Practice and collaborate for strategic planning strategies.

    • Provide Key Performance Indicators (KPI) analysis for improvement recommendations with comparatives to metrics in your specialty. Drawing on years of management experience in the industry, we know the KPI's and how to implement them for greatest impact.

    • We represent the Doctor seller through the entire mergers and acquisitions process, focusing on the best valuation while also maintaining the legacy of the Practice and meeting the Doctors' goals.

    • Over 60 years of combined healthcare, investment analysis, contract negotiation, legal, and transactional experience.

    • Direct operational experience in the dental specialty space including operations, management, finance, leadership, HR, due diligence, and successful affiliation with DSO organization.

    • Proven success in financial analysis and negotiation process to maximize value.

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  • HOW IS ISLAND COAST ADVISORS COMPENSATED FOR THEIR SERVICES?

    • We are compensated through a success fee, based on a percentage of the economic value negotiated on your behalf, paid at closing.  We're successful only when you are successful. 

    • When you make the decision to engage Island Coast Advisors to assist you in the sale or partnership of your Practice, we charge a nominal retainer fee.  That fee covers only a portion of the costs associated with the initial financial analysis and creation of the customized marketing materials to present to potential buyers.

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