Bulletproof Dental Practice The Steps of Acquisition or Start-up
Apr 3, 2024
01:26:39
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.