Selling to a DSO: Key Considerations – With Brannon Moncrief
The Dental Practice Sale · A Practice Orbit Podcast
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Show Notes
The private equity behind DSOs is willing to pay a premium for dental practices.
But when it comes to selling your business, there’s more to think about than just economics.
So, what’s the upside of selling your practice to a dental support organization? What are you giving up? And what factors should a doctor consider before they sell to a DSO?
Brannon Moncrief is Principal and CEO of McLerran + Associates, a full-service dental practice brokerage firm and sell-side advisor for DSO transactions.
On this episode of The Dental Practice Sale Podcast, Brannon joins host Wes Read to explain why private equity is bullish on investing in the dental industry and why PE is willing to pay more for a practice than traditional private buyers.
Brannon describes how McLerran helps clients identify a DSO based on their personality and goals, finding the right combination of economics, autonomy and support the doctor is looking for.
Listen in for insight on what differentiates the JV deal structure from a holding company model and learn how you might benefit from selling your practice to the right dental support organization.
Topics Covered
[0:46] Brannon’s background in dental practice sales and why he specializes in DSOs
[2:16] Why private equity funds are so bullish on investing in the dental industry
[6:10] Why PE is willing to pay more for a dental practice than traditional private buyers
[11:37] What a doctor is giving up when they sell their practice to a DSO
[18:42] How McLerran helps dentists identify a DSO based on their personality and goals
[31:14] Why McLerran takes its client’s practices to market in a bid process
[33:15] The wide range of offers a dental practice might get from different DSOs
[34:33] How the size of a DSO matters in terms of a seller’s return on equity
[38:59] What differentiates a JV or DPO deal structure from the holding company model
[42:01] Why the JV model is so popular among younger dental practice sellers
[47:21] Why doctors with a finite exit plan like the holding company model
[48:33] How a ‘recap’ works and how doctors get a payout from the equity swap
[52:38] Why Brannon believes several DSOs will go public in the near future
[53:52] How long the trend toward consolidation in the dental industry will continue
Connect with Brannon Moncrief
Connect with Wes Read, Matt Odgers & Drew Phillips
Email [email protected], [email protected] or [email protected]