We spend a lot of time on the road each year and have the good fortune to be able to speak in front of many diverse audiences, so it’s really nice to have an opportunity “to be a student” from time to time.  One of those times is our annual trip to “Chiberia” in February for the McGuireWoods HealthCare Private Equity Conference. 

We always learn a ton at this conference and 2019 was no exception – so much that we’re having to break it into two separate blogs.  Let’s dig in on the first one that will shed some light on the Economic Outlook for 2019 as well as Considerations for Building an Exit Strategy…

In our last two blog posts, we talked about having “the End in Mind," more specifically being financially-oriented as related to an exit strategy, and then delved into personal objectives - contrasting topics of lifestyle and income versus effort and wealth. 

If those two blogs gave you some clarity around financial outcomes, time frames, and effort, then hopefully this one will be equally beneficial in the areas of “the WHAT” and “the WHY.”

In our last blog post, we talked about “the End in Mind” being more financially-oriented as it related to exit strategy and deal structure, specifically around the aspects of: transaction value and actual structure of the sale; requirements post-sale; and strategy necessary to achieve the intended outcome. 

Over the course of 2018, we were fortunate to host over 50 different businesses in our office. Some of these were private equity groups and search funds; others were established, founder-led group practices; and some were solo doctors with only one or two locations under their belt.  That’s quite a variety, but they all shared two things in common…

As the Wall Street Journal notes, a high employee turnover rate can cost “twice an employee’s salary to find and train a replacement.” Not only are there financial repercussions, a high turnover rate can also lower the knowledge base in your company and decrease performance and morale. If you want to avoid this negativity, it’s best to retain your best employees.

Consulting and M&A Advisory Firm Releases Associate Equity Compensation Model for Group Dental Practices

TUSK Partners, the fastest growing middle market consulting and M&A advisory firm in the dental industry, today announced the public launch of Partnership Pathways. The innovative program is designed to attract key talent, minimize turnover, and increase the value of equity among employees within group dental practices. Partnership Pathways joins a list of other industry-leading services TUSK provides to group dental practices and DSOs.

We work with a lot of clients in our Blueprints for Scale strategic consulting program as well as those who visit our offices for one-on-one sessions (called “Full Day Deep Dives”) that inevitably want to know:

“What’s the magic formula for building a successful group dental practice or DSO?” 

They know – and we know – that there’s no “magic formula” or “silver bullet” for success. Having said that, there are some metrics you should know to determine if you’re “on track” for building a successful business.

A few weeks ago, my partner, Kevin Arnold, wrote a blog post about “The Reasons DSOs Hit a Debt-Funding Wall” that created a lot of reaction. The subject matter is obviously a hot button for a lot of growing group dental practices and emerging DSOs these days, so we decided to revisit the topic and have a bank weigh in on the topic directly.

Imagine that – asking a real, live banker to share some “inside baseball” on the nuts and bolts of lending in the group practice space! 

If you are even remotely involved in the DSO or Group Practice space, there is a very good chance you were in attendance at the ADSO Summit in Austin. The 2018 Summit set a record for attendance and the buzz around the event was nothing but exciting! 

Education and advice from industry veterans was bountiful. What all did we learn?

Here are some valuable pearls…