When it’s time to consider selling your dental practice, don’t limit your options to just other dental practitioners. It would be in your best interest to consider selling your dental practice to corporate buyers as well. Selling your practice to a corporate buyer like dental management organizations or DMOs, and small group networks (SGNs) offer a lot of benefits.
What is a Dental Management Organization?
A dental management organization is a group of dental practices, from a few dozen to a few hundred, managed under one corporate umbrella. The dental practices under the corporate umbrella share the same name.
A DMO will develop and acquire new dental practices, usually focusing on a particular regional market. Their financial coffers from private equity funds are deep and vast. DMOs are owned by investors and dentists who understand that dental care yields more profits than many other healthcare opportunities.
That dental care practices that belong to a DMO receive management and operational support, including training, continuing education, and ensuring their dental staff stay up to date on the latest dental procedures, medical laws, and more. Having the backing of a dental management organization means dentists can provide care for patients without worrying about the day to day management of the dental practice.
Some dental management organizations allow dentists to co-own one or more dental practices, sharing in the profits. It’s no wonder why new dentists tend to opt to work with DMOs over other practices.
What Are Small Group Networks?
Small group networks are a group of 3 to 20 dental practices managed by one owner. Typically, SGNs are owned by a dental practitioner experienced in operating high-profit, successful practices. Because small group networks do not have the same financial resources as dental management organizations, they rarely offer the same training and opportunities for growth.
What Are Your Goals When Choosing a Buyer?
When it comes to selling a dental practice, most dentists will sell to another sole proprietor to ensure their patients will continue to receive excellent care and personalized treatment. One thing that is absolutely vital when deciding to sell your dental practice to a corporate buyer or solo dentist is flesh out your goals first. Why do you want to sell your practice? Do you really want to retire, or do you just need an extended break? Are you selling due to financial reasons or medical/health issues?
Are You Seeking Post-Sale Employment?
If you are looking to have an employment opportunity after selling your practice, then you will likely have better opportunities by selling your dental practice to a corporate buyer.
There are pros and cons to selling your practice to a dental management organization, a small group network, and a sole proprietor. It all depends on your goals on which type of buyer will best fit your needs. The dental broker specialists at Aptus Exchange are here to help you set real, tangible goals, and plan on how to achieve those goals.
