In this episode of Beyond Bitewings, Ash sits down with Mark Brodson, Managing Broker at Resource Commercial Advisors, to discuss current design and real estate trends for dental practices. Mark shares insights on how dental office design now focuses more on patient comfort and the overall experience, moving away from the traditional, clinical atmosphere to environments that feel more like spas or lounges. He gives a detailed look at space planning, explaining typical square footage requirements for modern practices and the growing interest among dentists in expanding services to include aesthetic treatments like Botox.

The conversation also explores key considerations for dentists deciding between leasing or buying their office space. Mark Brodson explains the importance of lease clauses, including rights of first refusal and demolition or relocation clauses, and the value of working with a professional broker throughout the process. The episode wraps up with a discussion on suburban versus urban demand for dental spaces post-COVID and the significant impact that updated office design can have on the value and marketability of a dental practice.

To find out more and connect with Mark, visit: https://www.resourcecommercial.net/mark-brodson/

Key Topics Discussed:

• Design trends in dental office spaces

• Patient experience and comfort in dental practices

• Typical dental office sizes and efficient use of space

• Leasing vs. buying dental practice real estate

• Important lease clauses to consider (right of first refusal, demolition/relocation)

• Tenant improvement allowances and lease renewal strategies

• Factors that influence the value of a dental practice

• The shift from urban to suburban dental practice locations

• The role of professional brokers in real estate decisions

In this episode of Beyond Bitewings, we're bringing back some of our favorite advice from our episodes that discussed selling a dental practice to a Dental Support Organization (DSO), highlighting the significant differences between selling to a DSO and an independent buyer. The conversation covers how DSOs value practices using EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization), and why this can result in higher sale prices compared to traditional methods that use a percentage of collections. We also explain the importance of understanding value from the DSO and private equity perspective and warns practice owners about the risks of responding to unsolicited offers without proper representation.

The episode addresses key concerns for dentists, such as what to expect after the sale, how contracts are structured, and why it’s essential to shop around for multiple offers before committing. They discuss the impact of EBITDA calculations on a practice’s valuation, the role of lease agreements when the seller owns their building, and strategies to maximize the value of the transaction.

Key Topics Discussed:

1. How DSOs value dental practices using EBITDA
2. Differences between DSO and independent sales
3. The structure of post-sale contracts and earn-outs
4. Pitfalls of responding to unsolicited DSO offers
5. The importance of getting multiple offers and proper representation
6. EBITDA calculations and their effect on practice valuation
7. Lease agreements when the seller owns the building
8. Advice for maximizing practice sale value
9. The changing dental industry landscape with the growth of DSOs

Ash sits down with Dr. Ruth Mannschreck, a seasoned dentist turned practice transition coach, to talk about the real-world challenges and overlooked opportunities when selling a dental practice. Dr. Ruth shares the mistakes she made during her own transitions, such as not planning far enough in advance and not preparing the practice to be attractive to buyers from both a financial and operational standpoint. She emphasizes the importance of understanding what you want from a sale, proactively increasing value, and reducing buyer risk in ways that go beyond just the numbers.

The conversation moves into the role of practice culture, team involvement, and the transition process. Dr. Ruth advocates for engaging the dental team early in the transition, highlighting the benefits of transparency and preparing the team to operate independently. They also discuss the pitfalls of overreliance on the practice owner and the risk of selling a practice that functions more like a job than a turnkey business. Dr. Ruth offers listeners access to her resource checklist at prepitnow.com and outlines how planning and open communication can support a smoother transition for everyone involved.

To find out more or connect with Dr. Ruth, visit: https://shorelinestrategies.com/

Key Topics Discussed:

• The importance of early planning and preparation when selling a dental practice
• Common mistakes practice owners make during transitions
• Financial versus operational readiness for sale
• The value of culture, systems, and team capability in the sale process
• Strategies for increasing practice value and reducing perceived risk
• The impact of naming and branding on practice transitions
• Including the dental team in discussions and evaluations with potential buyers
• Creating a turnkey business versus selling a “job”
• Overcoming the challenge of letting go of control as an owner
• How to access Dr. Mannschreck’s Prep It Now checklist for selling a practice