Transitions Newsletter - September 2024

TRANSITIONS

We have all heard the headlines, and depending on the source, the outlook could focus on the “R” word, the “D” word, or that all is stable and fine. While data-driven indicators continue to show strength in the economy, there is little question that preparation is best started when times are good. What does that look like for your practice?

Whether you know it or not, you have a barometer of the economy built in to your practice. If you are a general practitioner or periodontist, watching the hygiene cancellation rate is an easy and clear data point to monitor. If it ticks up week over week, leading to month over month for an extended period, and holes begin to develop and are not getting filled, it is likely that your patients are feeling a crunch that may not yet be surfacing in national reporting. For specialists, especially in Oral Surgery and Endodontics, if your referral sources seem to be holding back and keeping work

to themselves, they may be filling the holes in their own schedules and with inclination to start on a procedure they may not have earlier in the year. Orthodontists will see a slowing in starts, even initial exams. Pediatric practitioners are somewhat, but not totally insulated, as parents will typically take care of their children before anything else.

So, what can you do?

Review In-Network Insurance Plans

While these may be helpful in a rougher economic times, as these plans provide defined benefits that can be used or lost, it is important to ensure you are getting the highest reimbursement rates possible. We would typically advocate for reducing the number of plans in which you participate, focusing on removing plans that are not productive or financially viable. From there, either through your own negotiation, or with help from a company like Unitas PPO Solutions, you should work on securing the highest possible fee schedule you can. This is important no matter what the economic forecast may be, so starting immediately is advisable.

Fortifying for Financial Freefall – Preparing your Practice... Just in Case (continued)

Establish Strong Recall/ Reappointment Procedures

When times are good, patients fill the schedule without much need for focus on tracking or follow-up procedures. As spending constricts, having reliable processes to ensure future appointments are secured, reminders are sent, and last-minute holes are filled can make or break a practice. Further, knowing or being able to report on what treatment is outstanding— accepted or just presented—can be a lifeline for the lighter scheduled days. Working to establish quality operating guidelines to reappoint from the chair and track from the front desk is an investment worth making.

Ensure Reliable Collections Procedures

How is your collections rate now? You can check this in nearly every practice management software package. If you are not running at nearly 100% collections rate, now is the time to fix that. Look at all sources—your private patient as well as private and in-network insurance payors. Do you

have processes in place for invoicing and follow-up? How is your Accounts Receivable Aging Report? While you may think it’s ideal for everything to be zero, maintaining manageable balances can help you through leaner weeks or months (or even vacation!). What you want to avoid are significant amounts trending into the 60- and 90day columns: Working to bring those down now will set expectations going forward. In tougher times, it is likely those buckets will fill, but keeping them minimal now will allow for proper focus if the time comes.

Patient Profile/Marketing

While potentially more obscure, spending the time now to focus on your patient profile and marketing to boost the counts of your ideal patient sets you up for the best in the good of times and the good in the worst of times. By zeroing in on the patients most likely to accept (or afford) the work and service you provide will allow you to best cater to and bring those patients in when new or returning patient flow may not be as strong. This will also allow you

to better service and relate to the patients you do have, creating a strong bond and affinity to you, your team, and your practice. This will also allow you to better communicate the need for the quality dentistry you provide, which can weigh on a patient’s mind when making financial decisions if spending becomes tighter.

This is just the tip of the iceberg, of course. Understanding the systems, operations, and financial form of your practice are vital to your day-to-day success. While it is important to be a great clinician and service provider to your patients, knowing and managing your business is your ultimate key to your future, and retirement.

Ready to chat? Book a complimentary 30-minute telephone consultation with a Henry Schein Dental Practice Transitions Consultant to get answers. Whether you are considering selling or buying a practice, merging your practice, or retiring, you will get our sound advice on what to do next.

Safeguarding Your Dental Practice: The Importance of PROPER Planning

by Alisa Shoaf, RDH Transition Sales Consultant

The dental profession is not only a field of healthcare but also a domain where practitioners invest their skills, time, and resources into building thriving practices. As someone deeply immersed in this world, I understand firsthand the critical importance of preparing for expected and unexpected transitions and the strategic planning necessary to ensure the longevity and value of a dental practice.

My Journey in Dentistry

My passion for assisting dentists through transitions is rooted in my extensive background within private practice. For nearly twenty-five years, I worked alongside a dedicated doctor, starting as a hygienist and evolving into a dedicated and trusted office manager. As an office manager, I was responsible for overseeing the practice’s day-to-day operations but was also able to improve processes that resulted in a thirty percent increase in production and collections. This position gave me invaluable insights into the inner workings of a dental practice, both clinically and operationally, as well as the challenges doctors face as practice owners. With this experience, I was also called upon to assist my doctor with his own transition, which allowed me to experience personally all facets and emotions involved in a transition.

During my tenure as a hygienist, my doctor experienced a significant health crisis that left us grappling with the uncertainties of practice continuity. This pivotal moment underscored the urgent need for emergency exit planning. Without a structured plan in place, the stress and disruptions caused by unforeseen events can jeopardize the well-being of the doctor’s family, staff, patients, and the practice’s overall value.

The Significance of Emergency Exit Planning

succession planning, financial considerations, and operational logistics tailored to the practitioner’s goals and timeline.

Transition planning allows practice owners to maximize the value of their practices while ensuring a smooth transfer of responsibilities and legacy to the next generation of doctors. By defining clear objectives and timelines, and having a financial plan in place, practitioners can navigate transitions with confidence, preserving your practice value, legacy, and continuity.

Understanding Practice Valuations

Practice valuations play a pivotal role in transition planning and emergency exit strategies. A comprehensive valuation provides practitioners with a clear understanding of their practice’s worth, taking into account financial metrics, patient demographics, operational efficiency, and market trends.

Knowing the value of your dental practice is essential for making informed decisions regarding transitions, partnerships, or practice expansion. It also serves as a benchmark for negotiations, ensuring fair and equitable transactions during ownership transfers.

The Intersection of Planning and Practice Success

“ Practice valuations play a pivotal role in transition planning and emergency exit strategies.”

Emergency exit planning is not merely a precaution; it is a strategic imperative for safeguarding the future of your dental practice. A comprehensive emergency exit plan addresses unforeseen circumstances such as illness, disability, or unexpected departures. By outlining contingency measures, including succession plans and practice management protocols, practitioners can mitigate risks and ensure continuity in patient care and practice operations.

Crafting

Effective Transition Strategies

Transition planning goes hand in hand with emergency preparedness, offering practitioners the opportunity to orchestrate deliberate shifts in practice ownership or management. A well-crafted transition strategy encompasses

In the dynamic landscape of dentistry, success is not solely determined by clinical expertise but also by strategic planning and preparedness. Emergency exit planning, transition strategies, and practice valuations are integral components of a doctor’s toolkit for navigating the complexities of practice ownership and management.

As I continue my journey assisting doctors through transitions, I am committed to advocating for proactive planning and empowering doctors to protect their practices and legacies. Dentists invest years of dedication and passion into their practices, and they deserve comprehensive strategies that prioritize their well-being and the continuity of patient care.

Conclusion

Emergency exit planning, transition strategies, and practice valuations are indispensable pillars of practice management in dentistry. By prioritizing proactive planning and preparedness, doctors can mitigate risks, safeguard practice value, and ensure smooth transitions during unexpected circumstances or planned retirements.

For personalized guidance on emergency exit planning, transition strategies, or practice valuations, reach out today. Protect your hard work, dedication, legacy, and practice value with proactive planning.

DENTAL PRACTICE TRENDS

Western United States

The dental practice sales market in the Western region remains robust, with trends closely resembling those of previous years. We have found that location continues to be a significant factor for buyers, particularly in and around major metropolitan areas. Practices in these regions consistently attract interest due to their access to larger patient bases and robust facilities and services, while overall demand has remained stable compared to past years. Additionally, practices in suburban areas outlying larger metro regions are increasingly viewed as sound investments, offering growth potential and more affordable entry points, especially for younger dentists entering the market.

Financial performance is another key consideration for today’s more educated buyers. Practices generating over $800,000 in annual revenue, particularly those with higher profit margins, are especially appealing in the West. Dental practice financing remains highly accessible, and recent fluctuations in interest rates have had minimal impact on the pace and volume of sales in the region. Buyers continue to secure favorable financing options for acquisitions of all sizes, maintaining steady market activity.  While recent adjustments in interest rates have provided some added confidence to buyers, the overall impact on the market has been modest. Lower rates have made financing somewhat more accessible, but the effect has not significantly altered the pace or volume of sales compared to previous years.

Central/Midwest United States

The Midwest and Central regions continue to maintain steady activity in the dental practice sales market, with trends that closely mirror those of previous years. We have observed that location remains a consistent priority for buyers. Practices near larger metropolitan areas still garner more interest, due to their access to a broader patient base and established infrastructure, although there has not been a significant surge in demand compared to past years.

Financial performance remains a crucial consideration, with practices generating revenues of $700,000 or more continuing be generally more attractive to buyers. This revenue level is seen as a reliable indicator of a practice’s stability and longterm viability, aligning with buyer expectations that have persisted over time. These practices typically have a strong presence in their communities, making them a sound investment for those looking to enter or expand in the market.

Eastern United States

East Coast practice sales have surged compared to last year and show no signs of slowing down. The market remains particularly strong in large metropolitan areas, especially for practices with solid cash flow and five or more treatment rooms. The buyer pool consists of a blend of sole practitioners, small groups, and large DSOs. It continues to be a seller’s market, with limited inventory driving up prices.

In smaller towns, the market is ripe with motivated sellers offering highly profitable practices. Many of these practices also include real estate, making them even more appealing to potential buyers. These practices benefit from less competition, an abundance of patients, and lower overhead, which further enhances their attractiveness.

Potential buyers face a choice: either compete for higher-priced practices in heavily sought after metropolitan areas or explore the multiple, highly profitable options available in smaller towns, which are often priced lower.

WHAT OUR CLIENTS ARE SAYING:

“ I felt confident to pass the torch and retire...I would highly recommend Christy and her team at Henry Schein.”

Selling a dental practice after 30 plus years is one of the hardest decisions you will have in your career. Fortunately, Sara and the Henry Schein Transition team made this just a bit easier. They took the time to investigate what made our practice unique and special, then approached potential buyers that valued the same ideals. I felt I could call Sara anytime with concerns. Her professionalism and organization really impressed me, and I cannot thank her enough.

Dr. Mike Learman – Seller Bay City, MI

Jack Minahan has made the acquisition process and transition smooth and easy for me. This is my first acquisition and he made sure that I’m well informed on each step from beginning to closing. I truly found my dream practice and thanks a lot to Henry Schein and Jack for making that possible!

Anna Rivera, D.M.D. – Buyer Whiting,

IN

Christy is amazing! She introduced me to the perfect dentists. I felt confident to pass the torch and retire. She was there every step of the way with an unparalleled attention to details. She made it happen! I would highly recommend Christy and her team at Henry Schein. They are the best.

Sam

K Parsi,

D.D.S

– Seller Poway, CA

I’d like to thank Robert on helping me on the sale of my practice. It was a big decision for me, and he was there for me every step of the way. He was available at all hours to answer any questions and deal with any concerns. He was able to get several offers and were able to close in about 30 days. Working with Robert really allowed me to calm my nerves and tensions on selling. Highly recommend him.

Magied Bishara, D.D.S – Seller Tampa, FL

DIVE IN & LEARN

and

you’ve made throughout your

career. Hear from the following industry experts for an update on practice values, dental market trends, considerations for successfully transitioning your practice, and more: Senior Director of Transition Services, Thomas Snyder, DMD, MBA; Senior Director of Marketing and Sales Enablement, Greg Auerbach, MBA; and Regional Sales Manager, Chris Regnier.

Paul Genasci, D.D.S. sold to Adriatik Rama, D.D.S.

John-David Miller, D.D.S. sold to Alex Vo, D.M.D.

Chance W. Finley, D.D.S. sold to David Meece, C.E.O.

Jeffrey A. Youngquist, D.D.S. sold to Adriatik Rama, D.D.S.

Michael E. Learman, D.D.S. sold to Joseph Vanfleteren, Jr., D.D.S.

Mark Shulman, D.D.S. sold to Isata Panda, D.D.S.

Kenneth G. Auman, D.D.S. sold to Kaylan Myers-Massey, D.D.S.

El-Rasheed Khalifa, D.D.S., M.S. sold to Nelson Hu, D.D.S.

Martin P. Zone, D.D.S. sold to Dan Sorin Doaga, D.D.S.

Anthony J. Marino, D.D.S. sold to Jonathan Pyle, D.M.D.

James R. Mularczyk, D.D.S. sold to Parthiv Patel, D.D.S.

Elizabeth Prishkulnik, D.D.S. sold to John Steinbrun, C.E.O.

Carly W. Thomas, D.D.S. sold to Kenneth S. Sellers, Jr., D.D.S.

Thomas C. Morris, D.M.D. sold to Anthony Leonetti, Ken D. Cotton, D.D.S. sold to Brian L. Kynaston, D.D.S.

Ronnie A. Deniger, D.D.S. sold to Scott Wells, M.B.A.

Jeffrey Krupp, D.D.S., M.S. sold to Hamid R. Abedi, D.D.S., M.B.A.

Sherry Steinmetz, D.D.S. sold to Amandeep Singh Gill, D.D.S.

Peter Cutler, D.D.S. sold to Crystal Ladhar, D.D.S.

Sonny Lim, D.M.D. sold to Harlovjeet Singh, D.D.S.

Dan Gustavson, D.D.S. sold to Adrian Radu, D.D.S., M.B.A.

Sasan Parsi, D.D.S. sold to Jennifer Claire Neglerio, D.D.S.

Cynthia Brown, D.M.D. sold to Jeremy Farbman, D.M.D.

Edward G. Cavicchi, Jr., D.M.D. sold to DONG KIM, D.M.D.

Gerald Roberts, D.D.S. sold to Nahvid Jafarnejad, D.M.D.

Kenneth R. Scherer, D.D.S. sold to Natalie Garcia Rodriguez, D.M.D.

Andrew Slavin, D.D.S. sold to Chad Curtis, D.D.S.

Anthony Mikulka, D.D.S. sold to Pinky Vanmali, D.M.D.

Mary Gharagozloo, D.D.S. sold to Joshua Hall, D.M.D.

Amani Alkhairi, D.M.D. sold to Adriana Martinez, D.D.S.

Lane McEwan, D.M.D. sold to Saidapet Sridhar, D.D.S.

Stephanie K. Wendt, D.D.S. sold to Michele P. Walker, D.D.S.

Mark McCoy, D.D.S. sold to Shauna Pittman, D.M.D.

Craig S. Wernette, D.D.S. sold to Scott Hodas, D.D.S.

Rodney E. Shivers, D.D.S. sold to Golnaz Naghdi, D.D.S. Venkatrayudu Damaraju, D.M.D. sold to Garima Kapur, D.D.S.

Lawrence Fealy, D.D.S. sold to Rayan Kafri, D.M.D.

Tatshyan Sihoe, D.D.S. sold to Diana Mamaril Boado, D.D.S.

Anthony H. Edwards, D.D.S. sold to Colin Forde, D.D.S.

Charles R. Steel, D.D.S. sold to Reese Ruder, D.D.S.

Howell A. Nicholson, III, D.D.S. sold to Lucas Fogaca, D.D.S.

James D. Ciancarelli, D.M.D. sold to Savita Sharma, D.M.D.

Anne B. Gunn, D.D.S. sold to Fawaad Chaudhry, D.D.S. Charles Sacks, D.M.D. sold to Ronak Thesiya, D.D.S.

Jon N. Bowie, D.M.D. sold to Lauren Metzger, D.M.D.

Christopher P. Press, D.D.S., M.S. sold to Timothy Ponkowski, D.D.S.

Anthony Derrick, D.D.S. sold to Shady Ashamalla, D.D.S. and Mary Shenouda, D.D.S.

Robert Hawkins, D.M.D. sold to Troy Gessner, D.D.S.

Susan J. Baker, D.D.S. sold to Todd Sutton, D.D.S.

Roy W. Flint, D.M.D., F.A.G.D. sold to Iris Bogdan, D.M.D.

Sold Practice Announcements

Brian L. Watson, D.M.D. sold to Armando A. Jauregui, D.D.S.

Jenny Narvaez, D.D.S. sold to Fasih Haq, D.M.D.

Gunjan A. Harmani, D.M.D. sold to Jessica K. Proctor, D.M.D.

Hank Zakhari, D.M.D. sold to Julie Fox, D.D.S.

Douglas Harshberger, D.D.S. sold to Venkata Siva Reddy Guvva, D.D.S.

Carolyn W. Peake, D.M.D. sold to William Allias, III

Eric M. Noser, D.D.S. sold to Nathaniel Tippit, D.D.S.

Scott Dudley, D.M.D. sold to Kevin Boehnke, D.D.S.

William J. Vigneux, D.M.D. sold to Divya Mudumba, D.M.D.

Craig Carlson, D.D.S. sold to Cheng Zhu, D.M.D.

Nadia Winstead, D.M.D. sold to Jerry Slaughter

Benjamin H. Waldman, D.D.S., F.A.G.D. sold to Adam Richichi, M.B.A.

Phillip B. Surosky, D.D.S. sold to Mark Nesbitt, D.D.S.

Bradford G. Rice, Sr., D.D.S. sold to Yurij Cherstylo, D.D.S.

Ricardo Bocanegra, D.D.S. sold to Mauricio Anda Conza, D.M.D.

Michael Tate Eble, D.D.S. sold to James Fleming, D.D.S.

Mehrdad Vajdi, D.D.S. sold to Zaid Al-Najjar, D.D.S.

David Mace, D.D.S. sold to Manpreet Dhaliwal, D.D.S.

Joseph L. Herman, D.D.S. sold to Michael Maruri, D.M.D.

Elizabeth DeAguirre, D.D.S. sold to Giovanni Aldama, D.M.D.

Robert Churney, D.M.D. sold to Victoria Adams, John Krueger, D.D.S. sold to Christopher Cannady, D.M.D.

Mauricio Castellanos, D.D.S., M.S. sold to Adriana Backer, D.D.S., M.S.D.

Barry Slipock, D.D.S. sold to Brad Starkweather, Manager

Rosangela Lavagnolli, D.D.S. sold to Jamil Olomi, D.M.D.

James L. O’Carroll, D.D.S. sold to Karina Golubyants, D.M.D.

Mahmoud Karimipour, D.M.D. sold to Mallory Hackbarth, D.M.D., M.S.

Richard F. Fossum, D.D.S. sold to Ahmet Celebi, D.D.S., M.S.

Stephen Hopfensperger, D.D.S. sold to Ian Morse, D.D.S.

Samantha Wolff, D.D.S. sold to Ramin Bahram, D.M.D.

Michael W. Koplin, D.M.D. sold to Raj Darji, D.M.D.

Stephen Scher, sold to Sida Huang, D.M.D.

Paul Todd Rose, D.D.S. sold to Payton Southall, D.D.S.

John T. Fukuda, D.D.S. sold to Timothy Jaryd Royer, D.M.D.

Shane M. Brien, D.D.S. sold to Scott Wells

John Kelmenson, D.D.S. sold to Scott Wells, M.B.A.

Steven R. Litwin, D.D.S. sold to Scott Wells, C.D.O.

William T. Lohmann, D.D.S. sold to Patrice Robbins, D.M.D.

Lawrence Kevin Metsger, D.M.D. sold to Matthew Maropis, D.M.D., M.S.

William A. Larkin, D.D.S. sold to Coleman Mower, D.M.D.

Dan R. Wilson, D.D.S. sold to Adriatik Rama, D.D.S.

Kenneth A. Yorgey, D.M.D. sold to Phyllis Greer, D.D.S.

Wendy J. Magda, D.M.D. sold to Bhargav Meghpara, D.D.S.

Hank Berger, D.D.S. sold to Jill Berger-McFarland, D.D.S.

Ricardo L. Diaz, D.D.S., M.S. sold to Scott Wells, M.B.A.

Khoa Nguyen, D.M.D. sold to Mujtaba Hussain Moosavi, D.M.D.

David S. O’Hara, D.D.S. sold to Mary Glasheen, D.D.S.

John C. Binkley, D.M.D. sold to Vito Dacchille, C.E.O.

Scott V. Merritt, D.M.D. sold to Vito Dacchille, C.E.O.

ARKANSAS

PRACTICES FOR SALE

CALIFORNIA (continued)

PRACTICES FOR SALE

PRACTICES FOR SALE

PRACTICES FOR SALE

ILLINOIS

FOR SALE

PRACTICES FOR SALE

PRACTICES FOR SALE

PRACTICES FOR SALE

SOUTH CAROLINA