The Steps of Acquisition or Start-up
The Bulletproof Dental Podcast Episode 342
HOSTS: Dr. Peter Boulden
GUESTS: Dr. Trey Tippit and Dr. Dwight Peccora
TAKEAWAYS
- Understanding the differences between acquisitions and startups is crucial in making informed decisions.
- Financial factors such as revenue, debt-to-revenue ratio, and cash flow play a significant role in acquisitions.
- Operational efficiencies and utilization rates are key metrics to consider in underperforming practices.
- Determining the purchase price based on body count can help in evaluating the value of an acquisition. Body count, or the active patient count, is an important metric to consider when evaluating an acquisition.
- Different metrics, such as average production per patient visit, can provide insights into the efficiency of a practice.
- Addressing attrition and periodontal disease is crucial in maintaining patient retention and improving overall oral health.
- Using effective verbiage and communication techniques can help navigate uncomfortable conversations with patients and team members.
- A letter of intent (LOI) is a non-binding agreement that outlines the terms and conditions of an acquisition, and it is important to clearly communicate expectations and components in the LOI. Negotiating the deal involves discussing important components such as non-compete clauses.
- Due diligence is crucial and should include reviewing financial data, evaluating equipment and IT systems, and assessing the team and culture of the practice.
- Using memorandums of understanding (MOUs) and letters of intent (LOIs) can help facilitate the acquisition process.
- Phasing in changes after the acquisition can help build trust and retain the team.
- Learning from mistakes and continuously improving the acquisition process is essential.
CHAPTERS
00:00 – Introduction and Overview
00:58 – The Importance of Understanding Acquisitions
08:08 – Factors to Consider in Acquisitions
11:50 – Identifying Acquisitions
14:46 – Analyzing Financials in Acquisitions
23:31 – Utilization Rate as a Key Metric
28:35 – Determining Purchase Price Based on Body Count
31:14 – Different Metrics for Evaluating Efficiency
34:13 – Evaluating the Value of a Practice
36:08 – The Impact of Attrition in Acquisitions
45:33 – The Importance of Verbiage in Uncomfortable Conversations
51:29 – The Significance of a Letter of Intent (LOI)
57:34 – Negotiating the Deal
58:33 – Important Components to Include
01:02:07 – Using MOUs and LOIs
01:03:12 – Due Diligence Overview
01:05:18 – Day One Priorities
01:06:19 – Phasing in Changes
01:12:20 – Continuing the Discussion
01:19:09 – The Learning Process
REFERENCES
Blog
, June 15, 2023
, June 8, 2023
, May 31, 2023
Look at These 3 Stats if You’re Thinking of Going Out of Network with Teresa Duncan
, January 11, 2023
, December 28, 2022
Knowing What You Don’t Want with Judy Kay Mausolf of Culture Camp and Erika Pusillo
, November 30, 2022
Cabo This Week, Immersion Learning, Biggest Breakthroughs, Your Personal KPI is Net Worth
, November 2, 2022
, October 19, 2022
Business is not Productivity, Productivity is not Profitability with Chris Salierno
, September 22, 2021
3 Biggest Bottlenecks of an Entrepreneurial Dentist: PART 2 with Perrin DesPortes of TUSK Partners
