FOR IMMEDIATE RELEASE: (January 7, 2019)
Tags: Company News
As the Wall Street Journal notes, a high employee turnover rate can cost “twice an employee’s salary to find and train a replacement.” Not only are there financial repercussions, a high turnover rate can also lower the knowledge base in your company and decrease performance and morale. If you want to avoid this negativity, it’s best to retain your best employees.
Consulting and M&A Advisory Firm Releases Associate Equity Compensation Model for Group Dental Practices
TUSK Partners, the fastest growing middle market consulting and M&A advisory firm in the dental industry, today announced the public launch of Partnership Pathways. The innovative program is designed to attract key talent, minimize turnover, and increase the value of equity among employees within group dental practices. Partnership Pathways joins a list of other industry-leading services TUSK provides to group dental practices and DSOs.
Tags: Company News
We work with a lot of clients in our Blueprints for Scale strategic consulting program as well as those who visit our offices for one-on-one sessions (called “Full Day Deep Dives”) that inevitably want to know:
“What’s the magic formula for building a successful group dental practice or DSO?”
They know – and we know – that there’s no “magic formula” or “silver bullet” for success. Having said that, there are some metrics you should know to determine if you’re “on track” for building a successful business.
A few weeks ago, my partner, Kevin Arnold, wrote a blog post about “The Reasons DSOs Hit a Debt-Funding Wall” that created a lot of reaction. The subject matter is obviously a hot button for a lot of growing group dental practices and emerging DSOs these days, so we decided to revisit the topic and have a bank weigh in on the topic directly.
Imagine that – asking a real, live banker to share some “inside baseball” on the nuts and bolts of lending in the group practice space!
Here’s what the boys in dark gray suits and floral ties had to say…
As the dental industry continues to boom, many group practices are reaching key points of growth in their business. Securing financing is a crucial step to scaling your practice and reaching your acquisition goals, but the process can be daunting. However, it doesn’t have to be.
Banks, whether they specialize in dentistry or not, all evaluate the same credit criteria when determining their risk appetite for lending: basic credit, practice ownership characteristics, and the group’s overall value proposition.
If you are even remotely involved in the DSO or Group Practice space, there is a very good chance you were in attendance at the ADSO Summit in Austin. The 2018 Summit set a record for attendance and the buzz around the event was nothing but exciting!
Education and advice from industry veterans was bountiful. What all did we learn?
Here are some valuable pearls…
Scaling and operating a growing group practice is hard work. In the early stages, success or failure can often hinge on the consistent revenue produced by your best providers. You’re not alone. In fact, “retaining key employees” is the number one challenge of every founder-owner of a group practice.
But what if you could solve the problem of associate turnover in your business?
Could you turn a weakness into a strength?
Or even create a competitive advantage?...
It seems like everyone these days is starting a group practice or DSO. And by now, we all know someone who just sold their business for some ungodly amount of money. Figure it this way: you’re at 1 location, so you’re only 841 away from being the next Heartland Dental, right?
I mean, really – how hard can it be?...
Life is good in your early-stage group dental practice. Revenue trajectory is positive, your growing management team is starting to click, and the culture across your locations is finally gelling. With this growth, your profitability is down a bit as you have invested in your management team, but this isn’t a surprise – and you know it’s for the best in the long term. It’s all starting to come together right in front of your eyes!
Life is good – and it’s about to get even better…
Unless you’ve been living under a rock for a few months, you’ve probably heard that Congress passed sweeping tax reform for 2018. The impacts of this legislation will be felt far and wide, but the general consensus is that the reform will be good for both companies and individuals. If that bears out to be true, the economic outlook for the United States should be very favorable for the years to come.
But, what does is mean for the dental industry and for DSOs in particular? Everybody’s got an opinion, so we asked some friends to share some feedback.
Here’s what they had to say…