How to Determine the Price of a Dental Practice (Valuation Expert Chicago & St. Louis)
How to Determine the Price of a Dental Practice (Valuation Expert Chicago & St. Louis) http://www.ValuationPodcast.com https://www.valuationmediation.com (314) 541-8163 Hi Welcome to ValuationPodcast.com - A podcast and video series about all things related to business and valuation. My name is Melissa Gragg, and I provide online divorce mediation and valuation services in St. Louis Missouri. Today we will discuss Insight into Dental Market Transactions - with Maria Melone. Maria is a leading M&A advisor to the dental industry and investment banker in Chicago Illinois, with a mission to help both individual dentists and dental groups navigate the complex landscape of dental-practice transactions. Maria is a managing director at Caber Hill Advisors. Welcome Maria! 1. What is the difference between pricing a dental practice for sale and valuing it for strategic planning? 2. Is the price to sell the practice easy to determine – what factors go into it? 3. Is there a rule of thumb or valuation multiple on what a dental practice is worth? 4. What is a DSO or Group Practice and how are they buying dental practices? 5. Are private equity firms getting involved in buying dental practices? 6. What are some of the terms and conditions in these deals with DSOs? 7. Are these terms different for private equity? 8. How do you determine which path is right for you to transition your practice? 9. How are dentists attracting younger dentists to transition into retirement? 10. Tell us more about you and your firm! Melissa Gragg CVA, MAFF, CDFA Expert testimony for financial and valuation issues Bridge Valuation Partners, LLC [email protected] http://www.BridgeValuation.com http://www.ValuationPodcast.com http://www.MediatorPodcast.com https://www.valuationmediation.com Cell: (314) 541-8163 Maria G Melone Managing Director M: (339) 927-8882 O: (508) 475-3800 F: (508) 475-3963 [email protected] 125 S. Wacker Drive Suite 300 Chicago, IL 60606-4421 caberhill.com Melissa Gragg (00:00:00): Hi, welcome to valuation podcast.com, a podcast and video series about all things related to business and valuation. My name is Melissa Gregg and I provide online divorce, mediation and valuation services in St. Louis Missouri. Today, we will discuss insight into dental market transactions with Maria Malone. Maria is a leading M and a advisor to the dental industry and an investment banker in Chicago, Illinois, with a mission to help both individual dentists and dental groups navigate the complex landscape of dental practice transactions. Maria is the managing director at caber hill advisors. Also located in Chicago, Illinois. Welcome Maria, how are you? Maria Melone (00:00:43): Great. It's so good to be here today with you, Melissa. Melissa Gragg (00:00:46): I went to this. Yes, I know. And it's so funny because since we kind of scheduled this, we've actually talked a lot to each other about other dental practices, but I think in general people, when they're in this process of valuation, they're usually doing the valuation for some reason, right? And when we look at dental practices a lot of times they're doing it to either transition the practice to new dentist or to sell it outright and just kind of getting started. I don't know if people really know how dentists are currently selling their practices, these things change over time. So maybe you can give us kind of a reference point. Maria Melone (00:01:30): Sure. Happy to go into a little bit of history and then bring us to where we are today as there has been quite a shift. You know, so historically speaking, the dental industry was really a very much a cottage industry. Mostly made up of solo practitioners, spending their entire careers in a single location and then, you know, transitioning or selling that business to a doctor coming out of school. And in that process, most sellers relied on a broker to help facilitate that process. However, you know, very interestingly I guess, especially from where I sit most of these brokers across the country, you know, we're not financial people, we're not accounting. People didn't have any evaluation training. But somebody showed them, you know, anywhere from three to eight methods of how to value a business, most of which were very subjectively based. Maria Melone (00:02:37): And so, you know, that was what was used and there wasn't a lot that was questioned about it. And then, you know, I would say starting about 20 years ago we start, we started to see an interest in consolidating the dental industry. And so we started to see the formation of, you know, what I've always referred to as group practices 20 years ago. A lot of people in the industry would say corporate dentistry. You know, I, I really try to stay away from that because it has a bit of a negative connotation to it.
