In this installment of our Greatest Hits series, we revisit a past episode of the Orthopreneurs Podcast featuring Glenn and Chip Fichtner from Large Practice Sales.

This episode sheds light on the ongoing trend of private equity's influence in the orthodontic world.

The discussion navigates through the dynamics of DSOs/OSOs, the crucial concept of EBITDA, and the evolving mindset of orthodontists concerning practice partnerships.

One prominent aspect we discussed was the prevalence of Invisible DSOs, where a DSO acquires a majority stake in a practice, allowing orthodontists to maintain ownership and operational control. This model has witnessed a notable uptick in transactions in recent years.

The conversation underscored that a practice's EBITDA holds more significance than top-line collections when attracting buyers. Profitability, represented by EBITDA, emerged as a pivotal factor in the practice's appeal to potential acquirers.

Younger practitioners are increasingly acknowledging the strategic value of actively bringing in a partner to foster business growth. Contrary to common misconceptions, these partnerships are strategic moves, not exits, with the aim of actively leveraging equity for future wealth creation.

Tune in for a recap of this insightful conversation that remains relevant in understanding the changing landscape of orthodontic practices.

Key Takeaways

Intro (00:00)

The invisible DSO model (02:58)

How to calculate EBITDA for a practice (09:15)

Why younger orthodontists should partner with an OSO (15:20)

Equity, multiples, and practice valuation (24:18)

Who's not ready to partner with an OSS (31:47)

Why OSOs don't want to interfere with your practice (37:13)

Additional Resources

Contact Large Practice Sales if you have any questions

🔹 Website: https://largepracticesales.com/

🔹 Phone No: 954-300-2644

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