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.
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?...
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…
Last week my partner,Kevin Cumbus, and I braved the cold of Chicago to do some networking and educate ourselves at the McGuireWoods Healthcare PE Conference. The action is fast, and education comes courtesy of a firehose.
Here are the three main things we learned.
Key Healthcare Business and Market Trends & Opportunities:
Everyone wants to know if we’re “at the top of the overall healthcare market” as it relates to valuations. The short answer is that nobody really knows, but the good thing is that in our world valuations are driven by earnings – not eyeballs. 2017 was phenomenal and the M&A sell side has been robust for 18-24months. Equity markets have been strong and debt markets have been very favorable. The great lending environment has been great for buyers using both debt and equity.
We work with clients all over the U.S. and inevitably hear comments like: “My five-location group generates about $12,000,000 in revenue. I’d like to build it up over the next five years and sell it for $50,000,000.”
OK…if you say so.
Do you want to borrow $49,000,000 to make that happen? I kinda doubt it.
What do you care more about: the amount of the sale or the amount you put in your bank account? If your answer is the latter, then you need to pay more attention to the amount of debt you take on and the impact that the tax rate will play because both of those will be paid off before the sale proceeds are deposited into your account.
Wisdom & Wandering from the Herd
Last fall, my partners and I all attended the McGuireWoods Healthcare Private Equity Conference here in Charlotte. While most of the southeast was still battling the remnants of what was Hurricane Irma, we had an opportunity to listen to sector experts as they tried to navigate the swirling winds of the healthcare industry. Make no mistake – healthcare is hot. There is a lot of opportunity, but it doesn’t come without an equal amount of risk.
Here’s what we learned…
The company adds to its financial and operational strengths
Charlotte, NC: Today TUSK Partners announced it is adding significant depth to an already strong and talented team with the addition of Kevin Arnold. Arnold will help to expand the company’s strategic consulting and “Second Stage” alternative financing service offerings (two of the fastest growing segments of the company and the most sought-after services by the emerging DSO market).
Tags: Company News