For many principals who have spent years building and maintaining their businesses, the prospect of what comes next can be daunting. Is it time to sell? Who do you sell to? Can you continue practising dentistry? Will you receive a fair price? Whether the next step is imminent for you or still several years away, these are just some of the questions you will need answers to before you can make the right decision for you, your business, your team and your patients.
Indeed, this was a situation that Dr Michael Sultan – principal of EndoCare – found himself in when thinking about the future of his practices, despite not being ready to retire. He reflects on his circumstances and reasons for wanting to make a change:
“Key for me was timing. I didn’t want to leave selling the practice or changing ownership until I was ready to retire, when I might not have the best options available for my business or for me. Instead, I wanted to relinquish some of the ownership responsibilities while I was still happy and healthy enough to really enjoy practising dentistry. This wasn’t a retirement plan, but the start of a longer-term journey that would see the business set up for success for many years to come – without all the management obligations being solely on me.”
With a desire to remain in the practice and continue seeing patients, Michael discovered a new approach to practice sales that utilised a shared ownership model in order to facilitate and incentivise continued growth.
“I was very interested in what was an entirely new concept to me”, Michael comments. “The idea that I could share ownership of the practice, receiving both an upfront payment and the opportunity for further income down the line as both the individual practice and the broader group grew, was hugely appealing. I liked that I could remain working as a clinician seeing my patients, but with the potential to top-up earnings over time based on business performance. It’s the gift that keeps on giving!”
This innovative model may be new to the UK, but it is based on best practices tried and tested around the world. The organisation on a mission to transform the UK dental practice sector is DeNovo Dental Partners, who is offering a refreshing alternative approach to practice sales. Partner dentists receive the majority of their payment upfront, while also taking a minority stake in the parent company. This investment and the shared ownership model create a ‘best of both worlds’ proposition, combining practice autonomy and security with the support and strength of a collective community, driving accelerated practice growth.
Naturally, Michael had some questions that needed addressing when contemplating his options. He shares what some of these were and how he resolved them:
“It was important for me to understand how long I was required to remain at the practice and if this aligned with my goals. I also enquired about how much clinical freedom I would have to deliver patient care. The DeNovo team really put me at ease. They reassured me that I could taper my involvement at any time beyond the agreed initial period. I would also retain full clinical autotomy and there was potential to reduce my clinical hours and work in a more management-focused role should I choose at a later date.
“The DeNovo team have been incredibly helpful throughout, remaining communicative and on my side every step of the way. There have been no surprises in terms of what they promised and what they delivered. The team were a great source of support, which bodes well for the future of our partnership. I have also found the DeNovo team to be decent people – this entire partnership is based on trust.”
Since joining the DeNovo group, there has been very little change within daily practice for the team. Michael adds:
“The new partnership has had a very light touch on the practice so there haven’t been any real changes. If I hadn’t told the team about the transition, they probably wouldn’t have even noticed. The staff have been happy to hear that I will remain at the practice for a few years and that it will be pretty much business as usual.”
Looking ahead, Michael shares what he envisions for his business and his partnership with DeNovo:
“We expect the business to grow in the coming years thanks to the DeNovo partnership, which will afford greater networking and teamwork opportunities that could be phenomenal. Though it’s still early days, we are incredibly enthusiastic about the model – it’s a very positive concept that could inspire dentists to sell at just the right time for them, allowing them to continue working in a very supportive environment.”
Want to know more? Contact DeNovo today to find out what the future for you, your practice and your team could look like.
Find out if DeNovo is right for your practice’s future by visiting www.denovo.partners today
Media Contact:
DeNovo Dental Partners
Kristen Pope
Chief Integration, Partnership & Communications Officer
Kristen.Pope@DeNovo.Partners
www.denovo.partners
