Demystifying DSO’s with Brian Colao

Text ‘bulletproof’ to 345345 to stay in the know about our upcoming book release and the Bulletproof Summit on October 12-13th 2018 in Atlanta!

Bulletproof Dental Practice Podcast Episode 71

Hosts: Dr. Peter Boulden & Dr. Craig Spodak

Guest: Brian Colao, Dykema

Key Takeaways:

  • Dentistry is undergoing a great evolution and a great consolidation.
  • There’s also massive disruption within the workspace of dentistry.
  • There’s a lot of fear out there, and it doesn’t have to be that way.
  • A big part of the fear is lack of information. If you can understand what the changes are, why they’re happening, and what the legal options are, there is no reason to fear change.
  • DSO’s allow dentist owners to sell their practice to the whole world, not just to another dentist in your state.
  • If you’re a solo office, you don’t necessarily need to be a DSO. If you plan to grow and are looking for the largest buyout possible then a DSO setup will be a great benefit.
  • After 3 offices you’ll generally see more favorable tax treatment under the new code. Check with your CPA for specifics on your practice.
  • A lot of specialists are forming DSO’s as well.
  • GP DSO’s are buying specialists as well.
  • As the whole market starts to consolidate to DSO’s, strictly referral-based services will start to lose market share.
  • Technology is making specialty procedures a lot more doable for general dentists.
  • The next 3-4 years will include a lot of consolidation, but right now there’s room for everyone at the table.
  • After 5-10 years the marketplace may change, and some opportunities won’t be there anymore.
  • Seeing 14-15x offers will most likely become less common over the next couple years. Brian predicts 6-7x offers will be the norm.
  • There is tremendous demand from private equity to buy dental practices.
  • There is a bit of a gold rush in the dental industry; there’s high demand and low supply.
  • Don’t give in to FOMO; sell when it’s the right time for you.
  • For organizations under 5 offices, it costs around $20,000-$25,000 to set up a DSO.
  • For restructuring DSO’s, 8 out of 10 times Dykema can rework the original DSO into a better structure.
  • Dykema’s 5th Annual Definitive Conference for Dental Service Organizations is coming up July 18th-20th.
    • Register NOW with and use code “BulletProof” to receive discounted registration for $350!

References:

Private Equity is Pouring Money Into a Dental Empire

Blog

Freedom of Direction

, March 8, 2023

ALWAYS BE RECRUITING

, November 23, 2022

Bulletproof Storytime

, May 18, 2022

Mastermind Announcement

, May 14, 2022

Reduce the Friction

, March 30, 2022

Heroin and a Salary

, December 22, 2021

How it Started, How it’s Going

, December 10, 2021

All things Real Estate – Part 2

, November 24, 2021

All Things Real Estate – Part 1

, November 17, 2021

How To Talk To Your Team

, November 3, 2021

Your Revenue Doesn’t Matter

, October 21, 2021

Summit Wrap Up 2021

, July 28, 2021

Debt Repayment Methods

, June 16, 2021

Bottlenecks to Revenue

, June 9, 2021

The Bulletproof Pathway

, March 17, 2021

Comfort Zone & Lifestyle Creep

, February 17, 2021

1 VS. 5 Locations

, February 10, 2021

Team Alignment is EVERYTHING

, February 3, 2021

Work As Hard As You Can

, December 9, 2020

Becoming a Thoroughbred

, November 27, 2020

Dealing with Upset Patients

, October 22, 2020

Team Compensation Negotiations

, September 17, 2020

The Risk of Burnout

, September 9, 2020

When to Expand

, August 27, 2020

Don’t Blow Your Ask

, July 16, 2020

Your Last Dance

, June 2, 2020

Looking for Silver Linings

, April 7, 2020

HR Answers in a Corona World

, March 19, 2020

The Summit Recap

, March 3, 2020

Dr. Baird is BAAACK!

, February 20, 2020

The Insurance Conundrum

, January 9, 2020

2020: Your BEST Decade Yet

, January 2, 2020

Leadership with Dr. Jenny Perna

, December 19, 2019

Smartest in the Room

, September 19, 2019