Stock photo of a dental hygienist

Family Dentist LMO759

Map image of Southwest Missouri
Southwest Missouri
Status: Active

This general and family dentistry professional corporation has been operating at its current location since 1997 and represents a great opportunity for a new to owner to acquire a very successful, highly respected business serving this south western Missouri community. This dental office provides an experience to its patients commensurate with all that modern dentistry has to offer; including a comprehensive list of general, restorative and cosmetic dental services to meet the needs of the entire family. They pride themselves on offering exceptional service to each patient to achieve and maintain long-term dental health and a beautiful smile. The full range of general and specialist dentistry services include but are not limited to; preventative procedures, periodontics, endodontics, some orthodontics, oral and maxillofacial surgery, and laser dentistry. Specific procedures include; cleanings and preventative procedures such as new and existing patient exams, fluoride treatments and sealants, panoramic and cephalometric digital X-rays; general dentistry and restorative procedures including extractions, restorative fillings, fixed & partial dentures, bridges, braces and root canal treatments/therapy. The practice also offers cosmetic dental services such teeth whitening, composite fillings, porcelain inlays/onlays and veneers, crowns (caps), and full mouth reconstruction. The practice operates 3.5 days per week (Tuesday to Friday) and is well respected in the community it serves and by its more than 3,000 active patients as is evidenced by the more than 95% retention rate the business experiences and by the more than 18 new client referrals / patient visits they receive per month. The owner dentist would like to retire and is willing to stay on in some negotiated capacity (ranging from co-owner to consultant) to mentor and help transition the business to a new owner for an agreed upon period of time. Aside from the owner, the practice currently employs a total of 7 people including; two dentists, three hygienists (RPH), and five certified dental assistants – one of which is the owner’s wife who doubles as the office manager. This dentist practice comes equipped with up-to-date modern equipment and operates out of six fully functional operatories – 4 for use by the doctors and 2 used by the hygienists. They have a fully computerized Dentrix Practice Management G5 business-suite and utilize Intuit’s Demand Force platform for patient communications. The facility is equipped with nitrous oxide, utilizes digital radiography and has panoramic and cephalometric capabilities. Other equipment includes, digital sensors, laser, electric hand pieces, digital intraoral cameras, and much more. The sale would include all of the assets, equipment, supplies and a well-established patient list. The building and premises are owned separately by the owner and leased back to the business. Preferably this would transfer with the sale, although a lease or lease-to-purchase agreement might be separately negotiated from the sale for the real-estate. The building is located along one of the main business downtown streets of its Missouri community and within its roomy 4,866 sq. feet space is the six operatory/treatment rooms, a comfortable waiting / reception area, an organized front office, dispensary and charting area, a laboratory / sterilization area, an open meeting room, more private doctor’s office and restrooms for both staff and patients. In addition, this practice also houses a second level that includes a lounge, kitchen, two private offices (each with a bathroom), storage area, and an additional restroom with a shower, changing area, and a washer and dryer. With 3,015 active patients seen last year (2014), the average revenue per active patient is ~$310. Gross sales / collections have grown by a compound annual growth rate (CAGR) of 4% over the past 6 years currently the practice grossed $835K in sales (2014). Profit / net income to the business has consistently been in excess of $150K (or 16%+ of revenue) which is better than industry averages. Annual discretionary cash flow earnings to a single new owner, i.e. adjusted EBITDA or doctors gross income, is estimated to be more than 35%, i.e. ~$300K+ (before any compensation / remuneration), sufficient for a new outright owner to service any debt financing and still receive a generous remuneration package. The estimated value range of this practice from operations is between $400K and $590K (excluding cash, receivables, inventory, liabilities and facilities).

Dentistry LMO759 Historical
2014
Base
2015
Forecast
2016
Forecast
2017
Forecast
2018
Forecast
2019
Revenue/Sales
% Increase
835,768
4.0
852,483
2.0
869,533
2.0
886,924
2.0
904,662
2.0
922,755
2.0
Gross Profit
GP Margin (%)
732,858
87.7
746,090
87.5
761,011
87.5
776,232
87.5
791,756
87.5
807,591
87.5
Net Income (EBIT)
NI Margin (%)
167,189
20.0
168,541
19.8
176,103
20.3
184,167
20.8
185,947
20.6
189,666
20.6
Adjusted EBITDA*
EBITDA Margin (%)
297,514
35.6
300,169
35.2
309,048
35.5
318,441
35.9
321,564
35.5
326,640
35.4

* Adjusted EBITDA = EBIT plus Depreciation and Adjustments (excludes Owners compensation)