Some doctors are skeptical when we list the extraordinary values, we have achieved for our doctor clients over the last year. When the “industry standard” valuation is 80% to 100% of collections, doctors are amazed when shown multiple LPS transactions completed at 300%+ of collections. And note that we will complete well over $100,000,000 in transactions in the first QUARTER of 2019, primarily with “Invisible DSOs.”
Note: LPS’ success is primarily due to great clients. Extraordinary value levels are due to hard working, decisive doctors with exceptional profit margins, and strong growth. But we did add a little of our “secret sauce” to each transaction!
Higher Value Secret #1: Know WHO the Buyers Are.
Dental Support Organizations and Private Equity Groups (Collectively Referred to here as “Buyers”) each have certain goals. Many buy only General Practices, some buy only ortho, a few only buy OMFS, others focus on Ortho/Pedo, and our favorites buy GPs and all specialties. Most are very specific about the locations of target practices, the size, growth rate, and the doctor’s goals and value expectations.
Newly formed Buyers appear every month who pay more to enter the game, but you may not want them as partners at any price. And there are larger Buyers which can justify high value transactions due to the new revenues their existing affiliated practices in the area can provide to newly acquired practices. The secret is knowing who are the right partners for our doctor clients and which ones are buying what, when, where, why and how much they will pay!
LPS only gets paid when and if you get paid, as you get paid. We are highly motivated to complete transactions at the highest values with the experience to achieve them. Our fees are effectively ZERO when you understand the added value. Example: A doctor had an appraisal from a leading valuation firm at $4.8mm. We achieved $17mm.