In Part 2, we dive deep into the intricate process of selling a dental practice and partnering with a Dental Service Organization (DSO). Our conversation is candid and insightful, as we share our personal experiences and the lessons learned throughout this journey.

We begin by discussing the chaotic initial months after signing the contract, highlighting the numerous logistical challenges that arise, such as transferring bank accounts and changing EIN numbers. The transition can feel overwhelming, but we emphasize the importance of being prepared and not settling for unfavorable contract terms.

As we recount our experience, we reflect on the process of narrowing down potential DSOs. Initially, we had a list of about 20 options, which we whittled down to six, and ultimately two that aligned with our goals. We explain how we leveraged our collective practices with friends to negotiate better terms, including a higher valuation for our practices.

The episode delves into the critical phase of the Letter of Intent (LOI), where we agreed on general terms and entered an exclusive relationship with the chosen DSO. We share the excitement and challenges of evaluating our practices' worth, emphasizing the significance of identifying and adding back personal and one-time expenses to enhance profitability.

We also stress the importance of having a dedicated attorney throughout this process. We discuss the necessity of understanding the legal documents and ensuring that all terms are in our favor, especially when it comes to potential pitfalls like clawbacks—an issue that many in the dental community face.

A significant portion of our discussion revolves around the timing of informing our staff about the sale. We share the anxiety that comes with this decision, balancing the DSO's desire for transparency with our concerns about staff retention. Ultimately, we reveal how we navigated this delicate situation and the relief we felt once the deal was finalized.

As we reflect on the first year post-sale, we acknowledge the ongoing partnership with the DSO and the importance of maintaining operational efficiency. We discuss the realistic expectations we had going into this partnership and the need for continued involvement in the practice's success.

Throughout the episode, we provide practical advice for anyone considering a similar path, emphasizing the importance of thorough preparation, clear communication, and understanding the intricacies of the deal. We conclude by expressing our enthusiasm for sharing future updates on our journey and the evolving landscape of dentistry and DSOs.

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