"Leaving the Business Profitably", helps the maturing dentist transition into a position of strength when planning for the eventual sale of the practice
November 16, 2010
by Jordan Soll BSc, DDS
In June of 1986, I contacted ROI Corporation to assist me in the purchase of my dental practice. The invaluable advice and guidance was instrumental in the successful purchase of one of my most profitable assets. At the age of 29, and borrowing what I thought was all the money in the world, it was important to have a knowledgeable representative to navigate the process.
Through my representative at the time, Lani Brown, who is no longer active in the 36-year-old family run business, I became good friends with Lani’s brother Tim. I consider Tim to be one of the most knowledgeable sources of information in the area of dental practices past, present and future. In my quest to always keep up with the realities of our industry, I will often chat casually with Tim whenever our paths cross, hoping to get the “inside scoop” on potential opportunities to explore or emerging pitfalls to avoid. Little did I realize that obtaining the “inside edge” was easier than I knew and available to anybody with an interest. The pearls of information that are available to all are neatly contained in Tim’s book, Profitable Practice – Why a Dental Practice is an Exceptional Investment.
Profitable Practice is an extremely easy, 193-page, must read; whether you are a new graduate or a dentist looking at transitioning your practice. For the beginner, Tim thoroughly examines the pros and cons of the different scenarios from associating, purchasing an established practice, or starting out fresh. The information presented is the product of two generations of expertise in dealing exclusively with the purchase and sale of dental practices. Additional sections, such as “Strategies for Managing Staff”, are useful reference points to compare with your own practice or serve as a foundation for a young practice’s office policies. The book also addresses “Optimizing Success” which incorporates tips and tricks that Tim has gathered over the years from the thousands of dental offices he has stepped into. The last section, “Leaving the Business Profitably”, helps the maturing dentist transition into a position of strength when planning for the eventual sale of the practice. Right up to the end, Profitable Practice gives you steak and not just sizzle by providing informative appendices. Some of the documents include sample associate agreements, practice transition manual, locum agreement and offer to purchase.
Profitable Practice, beyond being an interesting read for dentists, no matter what stage of their career they are at, also serves as a resource as you pass through the various phases of your career. As our profession becomes more challenging from regulations, patient expectations, to the differences between generational attitudes of established and newly minted graduates, Timothy Brown levels the playing field in a no nonsense fashion.
Dr. Jordan Soll is the Co-Cosmetic Consultant to Oral Health Journal and is principle of Aesthetics in Dentistry.