For years, independent dental practice vendors have faced limited and often unsatisfactory options when selling their practices. Traditionally, these options involve the complete transfer of operational control, with earn-out structures designed primarily to protect the corporate buyer. This often results in disappointing outcomes such as the loss of key staff, diminished morale, and earn-outs not being realised.
A side effect of these limited options is that the sales journey typically begins at retirement, or as principals reach a point where the burden of running a business outweighs the benefits. But what about positive options for growing and ambitious practices?
For principals who have wished there was a better option, now there is.
Introducing DeNovo Dental Partners (DeNovo) – a new model for UK Dentistry
DeNovo is on a mission to transform the UK dental practice sector with a shared ownership model that offers a refreshing alternative option for principals planning for the future of their practice. Upon sale to DeNovo, Partner dentists receive the majority of their payment upfront, in cash, and take a minority stake in the DeNovo parent company. This investment and the shared ownership model creates a ‘best of both worlds’ proposition where the Partner dentist maintains practice autonomy, just with a whole lot more support from an aligned ownership community. By leveraging DeNovo’s collective strength, Partner dentists can accelerate practice growth, improve profitability, and participate in the broader success of the company.
DeNovo’s unique model has drawn on best practices utilised around the world, from Australia to Canada, and is tried and tested. It creates a truly new opportunity for dentists to enjoy the benefits of both independent and dental group environments.
The financial benefits
Like other selling options, DeNovo Partners benefit from the release of capital from their business, but that is pretty much where the similarity ends. Rather than any hold back, DeNovo Partners are paid the full value of the business upfront, with the majority paid in cash and the rest in shares of the DeNovo parent company. Additionally, rather than the amount a seller receives being set at the sale date, DeNovo continues to incentivise Partners by rewarding them in future years for the growth of their practice. Finally, the issuance of shares in the parent company means the Partners reap the benefit of share value increase, resulting from both the growth in the individual practices as well as from the arbitrage that results as the parent company scales.
Multiple wealth creation opportunities – earlier than previously thought possible
DeNovo Partners have multiple wealth creation opportunities and – due to the unique model – they can begin realising them earlier in their career than they had expected. Because of the continued incentive payments, DeNovo Partners need not fear missing the opportunity of maximising the value of their practice before selling. They can join now, leverage the support of the community and resources, and still be rewarded for growth. This makes DeNovo an ideal environment for dentists looking to take their practices to the next level, not for those who wish to retire imminently.
Additionally, the share value does more than align the Partners and the management team around the growth and value creation for the company. Down the line, upon a liquidity event, Partners receive yet another gain when their shares can be converted to cash. Looking at the financial benefits collectively, DeNovo Partner’s opportunity significantly outperforms what a traditional model would deliver.
The DeNovo mission – it’s not a retirement plan, it’s a growth plan
Ultimately, the objective of DeNovo is to create a community where Partners and their teams thrive and grow. DeNovo is on a mission to empower dentists through partnerships that encourage real clinical and business autonomy while offering a new level of support, thanks to extensive collective resources. It’s not a retirement plan; it’s a growth plan – and it’s one designed to ensure that dentists and their teams reap the rewards of that growth.
As such, DeNovo provides an excellent proposition for any dentist with a high-performing practice looking to plan the next phase of their career. Totally unique to anything else in the UK right now, DeNovo offers a better option suited for the forward-thinking clinician.
Find out if DeNovo is right for your practice’s future by visiting www.denovo.partners today
