2012
Dentistry Going Corporate
There was an interesting article featured in the April 9, 2012 issue of the ADA News. The cover story, “ADA Explores Growth of Large Group Practices” caught my eye. The article sites a recent study conducted by the Health Policy Resources Center of the American Dental Association (ADA), which concludes that the rate of solo practitioners is falling. In 2010, 69% of dentists were solo practitioners compared to 76% in 2006.
Certain states and areas of the country are experiencing the expansion at a faster rate than others. For example, the Minnesota Dental Association reports more than 12% of dentists in the state are employed in large group practices.
The American Association of Orthodontists (AAO) surveyed new graduates in 2009 and 2011 and found that 16% of respondents are practicing in a non-traditional setting, defined as either an interdisciplinary practice or a practice where they are employees or independent contractors. Chris Vranas, AAO Executive Director says, “Overall our membership is still at 69% in solo practice, 16% in partnerships, 6% in associateships, 4% interdisciplinary practice and 5% in large corporate practice.
We ask the question – what is driving the trend? The ADA article references educational debt of young doctors and the growth of Dental Service Organizations who need employee doctors to grow.
This trend of dentistry going corporate is something Bentson Clark & Copple has been watching for several years and one that you may have noticed in your drawing area. It will take some time to have a major impact, but understanding this trend will help you as you think strategically about your brand and identity as you communicate with new patients and referrals.
To learn more about the trends of today’s orthodontic residents, check out Bentson Clark & Copple’s 2011 Annual Residents Survey Results.
2012
Dental Practice Management Firm Shares Tips on Finding the Right Partner
GREENSBORO, NORTH CAROLINA – The most important decision for many orthodontists after buying an orthodontic practice is finding a partner to share the workload in a growing business. Bentson Clark & Copple specialize in dental practice management, and are experts in matching orthodontists for the best fit when entering a practice.
Doctors from across the United States approach the firm when they have an orthodontic practice for sale. The American Association of Orthodontists can also provide seekers with a wide range of practice opportunities.
Shannon Patterson, Director of Practice Opportunities at Bentson Clark & Copple, oversees the orthodontic resident and selling doctor matching database, a matching assistance program focused on assisting doctors in finding opportunities based on their geographical location and personal preferences. Read more >>
2012
Buying a Practice Should Be Smooth Sailing
GREENSBORO, NORTH CAROLINA – After residency, orthodontists are faced with a major decision: where to practice their trade. When a location is identified, the next big decision is whether to work as an employee, start-up, or buy an orthodontic practice.
Compared to starting a practice from scratch, a pre-existing practice typically offers an established patient and referral base, which increases the chances of success and provides credibility with patients. Pre-existing practices also provide residents with a mentor to work with during their first years as a professional orthodontist.
Bentson Clark & Copple, LLC work to match each orthodontic buyer with the right office for sale through their practice location services. Their valuation and transition work across the U.S. provides the firm a wide range of opportunities to present to the orthodontic community. Bentson Clark & Copple’s orthodontic practice location services are free to doctors seeking a practice opportunity.
Whether choosing to buy a practice or join as a partner, Chris Bentson, president of Bentson Clark & Copple and the Bentson Clark reSource, an orthodontic newsletter, suggests that purchasing equity is often the fastest track to paying off educational debt and building personal wealth.
Transitioning into an orthodontic practice can be summed up in five steps:
1. Once a practice has been identified, review the potential practice’s financial information and their orthodontic practice valuation. The seller of the practice will request you sign a non-disclosure agreement before releasing this information.
2012
Bentson Article Featured in Orthodontic Products Magazine
GREENSBORO, NORTH CAROLINA— At least once in their lives orthodontic practice owners will go through a practice transition. Whether they are buying into a practice, adding a partner, or selling their practice for retirement, Chris Bentson of Bentson Clark & Copple advises orthodontists through every step of the process.
In the latest issue of Orthodontic Products Magazine, Bentson explains practice transitions in five main steps.
Begin by Gathering Information
The transition process starts at least two to three years before an orthodontic practice is put up for sale. Begin by learning as much as possible about the transition process. Talk it through with financial advisors, spouses, and other orthodontists who have gone through a transition. Make sure you consult several colleagues and sources of information, as experiences can vary. Word of mouth can also be a valuable asset when choosing a company to conduct an orthodontic practice valuation. Being well informed can minimize any pitfalls or surprises that come with the transition process.
2012
Bentson Clark & Copple Releases 7th Annual Orthodontic Practice Valuations Review
GREENSBORO, NORTH CAROLINA – Orthodontic valuation and practice transition services company Bentson Clark & Copple, LLC recently released their 7th annual orthodontic practice valuation review in their quarterly newsletter, the Bentson Clark reSource.
The review analyzes data from 25 orthodontic practice valuations performed in 2011. The data includes net collections, practice income, overhead rate, practice value and number of locations for each respective practice. The data analyzed was completed in accordance with the National Association of Certified Valuators and Analysts’ Professional Standards, says Laura Overcash, Director of Marketing. This annual review of practice valuations can be used as a benchmarking tool for current orthodontic practice owners in regards to practice overhead, fair market value and current net collections. The analysis notes that many other factors must be recognized and considered to provide a complete understanding of the value of orthodontic practices for sale. The orthodontics practice valuation review compares the average single office practice values to multi-location practice values. As in previous reviews, a material variance in collections between single-office and multi-location practices exists.
Overhead rates for all practices analyzed ranged from 35.5 percent to 67.1 percent of collections. The overhead rates analyzed in the review do not include any doctor-related compensation or non-practice related expenses such as perquisites to the doctor owner.
More trends and interesting findings were available mid-February to subscribers of the first quarter issue of Bentson Clark reSource for $95 a year. To subscribe, visit bentsonclark.com/reSource.cfm or call 1-800-621-4664.
Learn More To learn more about buying or selling an orthodontic practice, subscribe to the Bentson Clark resource newsletter, an orthodontic newsletter or to schedule a free 30 minute consultation visit www.bentsonclark.com or call (800) 621- 4664.
Bentson Clark & Copple is committed to providing orthodontists with the tools needed to run a successful business, from the first day of practice until the last day. As an orthodontics transition services company their services include practice valuation, partner location services, and transition negotiations.
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- Buyer's Information Guide
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