General Dental Practice LLC CN720

Located less than 2 hours from Kansas City, in an energetic southeastern Kansas community of more than 9,000 people, this "turnkey" practice is perfectly suited for a dentist wanting to purchase an already well-established, successful practice. This family dental practice historically operated as C-Corp Professional Service (PA) business, but converted to an LLC in 2013. This practice is a quality opportunity that has produced great revenues for the past 38 years, with minimal insurance company interference (only accepting BC/BS and Delta Dental — Premier, i.e. no PPO and no Medicaid).

The doctor's very generous current gross income is based on a very comfortable work schedule. The business has room for growth as it currently operates a reduced schedule - operating four days per week - two days with three hygienists and two days with two hygienists (doctor also takes ±8 weeks of vacation per year). The owner-dentist is desiring retirement and is interested in selling the business within the next year, but is willing to provide advice to a new owner during an agreed upon transition period. The family-orientated business has excellent relationships with its patients and it is not uncommon for the practice to serve multiple generations within a family. The practice has over 4,800 total patient records on file, saw approximately 2,800 clients in the last 24 months. They see an average of 15 new patients per month. The business maintains a loyal patient base as evidenced by the high repeat business that they receive; a necessity for small-town success.

As a general dental practice, procedural services offered include, but are not limited to: cleanings and preventative procedures such as patient exams, fluoride treatments, sealants, and panoramic and cephalometric digital X-rays. Restorative procedures include extractions, restorative fillings, fixed & partial dentures, and bridges. The practice also offers cosmetic dental services such teeth whitening, composite fillings, porcelain inlays/onlays and veneers, and implant restorative procedures. Periodontics, endodontics, orthodontics, and complex oral and maxillofacial surgery are referred.

This dental practice comes equipped with up-to-date equipment in its four fully functional operatories within the approximately 2,275 square foot office space. Other spaces include; reception area, business office, consultation room, panoramic x-ray/lab/supply room, lounge, restrooms, and a doctor's private office. They have the fully computerized Practice Works business-suite throughout all operatories, utilize an iTero Cadcam scanner, and have digital radiography and GE Dendrix digital x-ray capabilities. They use SciCam autoclaves for sterilization. The facility is equipped with nitrous oxide, and other typical dental equipment including digital sensors, laser, Dental-Ez chairs and tables, TVs throughout the office, and much more. The sale includes equipment, supplies and a well-established patient list/records. The building and premises are owned separately by the optometrist who shares the building and leases the space at a very attractive rate. Besides the dentist, the staff includes five full-time and three part-time employees; four dental hygienists, one office manager, and two chairside assistants who are cross trained to help in the business office and one accounts payable clerk.

This debt-free business consistently grosses more than $750K and collected $770K in 2014 (6 months to June 2015 approx. $404K in collections). The practice maintains a positive cash flow, with estimated net profit estimated to be between 3% and 5%. Annual discretionary cash flow earnings to a new owner, adjusted EBITDA or doctors gross income of ~$275K estimated to be between 30% and 35% of collections (in line with industry averages), is sufficient for a new outright owner to service any debt financing and still receive a generous remuneration package. The estimated value range from this practice is between $330K and $450K (excluding cash, receivables, liabilities and facilities). For illustration purposes, based on weighted averages of our analysis/method, as described in the valuation report, the estimate of value of the Company as of December 31, 2014 is around $390K.