Selling Your Dental Practice

It’s easy to see why dentists around the world are opting for a group practice environment when you consider the following causes of frustration in self-practices:

• Staff management;
• The sense of isolation and boredom
• Administration and management
• The fear that the practice won’t fund the retirement the dentist wants
  

It’s not dentistry that is the problem. It’s the way the dentistry industry is structured.

That’s why we firmly believe that the future of dentistry is in group practices.

Lumino The Dentists has the largest group of fully-owned practices in New Zealand. Our goal is to become the leading dental group in New Zealand, relieving dentists of the responsibilities and stress of business management and creating practice environments that enhance the quality of life of dentists and staff. This ultimately enables us all to provide the highest level of service and care to patients.

Our focus is on acquiring existing practices and making them members of our group. The group will have a number of brand strategies, each of which will be targeted at specific segments of the New Zealand marketplace.

When a practice joins us we provide excellent employment opportunities to the existing dentists and staff and integrate their administration, accounting and practice management software into our centralised systems. All of this happens behind the scenes while the practice carries on doing business as usual. Neither dentists nor patients will notice any real change while the acquisition and transitions take place.

The information that can be found in the links above will give you a clear idea of the goals and objectives of our group and the compelling reasons for why you should join the group.

If you have any questions or are interested in taking the next step towards becoming a member of our group, contact Lumino The Dentists General Manager, Andy Tapper, on one of his contact details below to arrange a meeting. The meetings are informal, confidential and free of any obligation. They are designed to give you a full understanding of the issues and enable you to make an informed decision about joining the most successful dental group in New Zealand.

DDI: 64 9 361 7109
MOB: 64 21 503 688
FAX: 64 9 361 7110
Andy.Tapper@lumino.co.nz

The benefits of joining Lumino the Dentists:

There are multiple advantages to being a part of the Lumino the Dentists team but listed below are what our members consider to be the most attractive benefits.

» Helping you achieve your financial goals

We will pay you the market price for your practice. This gives you the opportunity to invest your retirement money into your own diversified investment portfolio without having it tied up in your practice. In addition to this:

We provide you with an opportunity to earn a significantly higher price for your practice if you stay and work in the practice and help us to grow the practice.

We pay market commission rates for our dentists and help them to grow their revenue through practice management systems and marketing initiatives that provide a real competitive advantage.

You have the option of working for the group as a commission-based employee or a commission-based contractor. We work with you to ensure the relationship suits your requirements.

Because you are no longer spending valuable time doing business and management related tasks, you can earn more money in the same working day.

Dentistry is a business based on very strong personal relationships with patients and if you wait until your retirement you will find that your practice, with you no longer working in it, is worth a lot less than it is now.

» A better professional lifestyle

Our goal at Lumino the Dentists is to relieve dentists of the responsibilities and stress of business management and to create practice environments that enhance the quality of life of dentists and staff. As a Lumino the Dentists team member you will enjoy:

Flexible work arrangements
We will work with you to understand your personal goals and objectives and ensure that you achieve the right work-life balance that suits you.

Collegial relationships with other dentists
Our team of dentists meet on a regular basis to debate issues and discuss both clinical and commercial issues. This is a forum that creates strong relationships and great ideas.

Enhance your knowledge
We run an annual conference where we have international speakers and presentations from experts within the group. This provides an excellent opportunity to learn from others within the group- as well as having fun! Continuing education is paramount and we contribute towards the cost of our clinicians attending courses.

Retain clinical independence
One of our key tenents is that the dentist is free to practice their profession. While we are there to offer clinical support when you request it, we don’t interfere with your professional work

Excellent support services
Our support team are specialists in HR, accounting, marketing, information technology, purchasing and administration. They are there to manage all the ancillary services and functions required to run a practice.

Better purchasing power
Because we purchase as one group, you enjoy the benefits of better price through volume. We are currently enjoying prices that give us considerable cost savings over and above sole practices, while you are still able to use the materials you would normally use.

An ever-increasing pool of patients
As our centralised database grows, our marketing strength increases. We have a dedicated marketing team who are constantly devising new ways to reach patients.

The Process:

The decision to join the group and sell your practice is a very significant one, so we will tailor the process and timeframe to suit the changes you are making. We appreciate this is often a decision you are considering or making in isolation of the rest of your staff so as to avoid creating anxiety or fear for them. Our experience has shown us that the key to a successful process is privacy and discretion. We will meet with you where and when you choose to ensure your practice hours are not interrupted and your staff are not disrupted. We will ensure that the whole process is as smooth as possible, without impacting on your daily business.

There are ten easy steps to becoming a part of the Lumino the Dentists team:

1. Introductory meeting and site visit
2. Confidentiality agreement
3. Financial review
4. Valuation and pricing proposal
5. Agree terms and conditions
6. Legal documentation prepared
7. Meet the people
8. Plan transition and integration steps
9. Financial settlement
10. First day in the group

FAQs:

What happens to my practice name?
Our preference is to brand all practices under the Lumino the Dentists name but whether this happens or not depends on a number of factors such as the goodwill associated with your own brand, the area you are operating in and the demographic of your patients. There are a number of obvious reasons for having a common brand such as patient awareness, brand consistency in marketing and marketing costs. However, it is important that you are comfortable with the name and brand of the practice you are working in. We believe that any name or brand changes should take place no earlier than six months after the transition to ensure the infrastructural changes take place first.

What dental services does the group offer?
Our dental practices offer all the general dental services. There is also an increasing focus on dentists with special interests in various aspects of dentistry such as cosmetic, implants and orthodontics. We are also interested in introducing specialists into the Lumino the Dentists group.

What are the working hours?
Typically the hours of your practice remain the same as they are now- unless we both believe there is an opportunity to change them for the good, but be assured that no changes to the hours are made without everyone’s agreement.

Can I choose the materials and suppliers I use?
As a group we aim to build great relationships with preferred suppliers in order to provide the best source and prices for our clinicians. However, your dental freedom is paramount and we would expect that the range of products you usually use would always be available.

What happens to my existing staff?
We believe in keeping good teams together, so your staff will continue to be employed in the practice under normal terms and conditions of employment.

What happens to my database of patients?
We will migrate your database into our central database. This uses Software of Excellence’s EXACT software that puts all of your patients’ history at your fingertips.

What happens to my existing marketing and advertising initiatives?
We undertake marketing initiatives at both a group and practice level, so as long as your programs are in line with our general marketing strategies there is no reason why these wouldn’t be continued, or even adopted across the group.

How long do I have to stay working in the practice?
This is totally up to you. We need to understand your personal goals and objectives so that we can structure a working arrangement that caters for your work and lifestyle requirements. Obviously, the longer you commit, the better it is for the long term profitability of the practice and the more you are likely to receive in total value for the practice.

Can I still receive the tax advantages that I enjoy as a sole trader?
This depends on how you want to structure your future relationship with the group. If you become a commission-based contractor then you will be able to claim business related expenses against your commission income. If you choose to become a commission-based employee then you will not have as much flexibility about what you can claim for tax purposes.

Testimonials

Allen Baker, DentalOne, Auckland:

'Having a decent exit programme had always been a part of my long term business plan for DentalOne. Lumino The Dentists offered exactly what I was looking for so, just over three years ago, I joined the team.

My time with Lumino The Dentists has been extremely rewarding. They have very good management systems in place as well as being a very supportive, friendly team to work with.

DentalOne was the first acquisition that Lumino The Dentists made. Since then, the process has become much more straightforward and streamlined. They are able to see things from the dentist's perspective and will walk you through the entire procedure.

As far as the dental practice goes, nothing much has changed. However, my life has changed significantly. It's a huge relief to know that the practice can run without me and that my staff will be taken care of whether I am around or not. I went on holiday recently and for the first time that I can remember I was able to fully relax without constantly thinking about work!'

Karen Harris, Karen Harris Dental, Wellington:

'Like many dentists with their own practice, I had never seriously thought about selling. Then, a couple of years ago, I attended a lecture on professional development for dentists, which included advice on exit strategies. This was a turning point for me and really got me thinking about my options.

Lumino The Dentists approached me just over two years ago and I realised that joining them would enable me to settle my debts and also grant me a lot more freedom.

The support from head office has been excellent. They are all very approachable and I am really enjoying the level of interaction I get with other people, especially being a sole practitioner.

The day-to-day running of the practice has not changed much but the benefits of joining Lumino The Dentists have certainly changed my life for the better.'

Nick Shearer, Shearer Dental, Oamaru:

'Lumino The Dentists was recommended to me by my brother-in-law, Anthony Wong, of Anthony Wong Dental Trust in Wellington. Tony joined the group in early 2007 and advised me that it was a great way of accessing capital tied up in the practice. Lumino The Dentists also helped Tony expand his practice which was a very attractive prospect for me. So, on 1st August 2007, I handed over the reins of Shearer Dental, which I purchased from my father in 1989, to Lumino the Dentists.

The entire acquisition process more than met my expectations. The initial handover only took three months and was very quick, straightforward and easy to understand. Since then, day-to-day proceedings have stayed pretty much the same although there is much less admin for me to do now!

Lumino The Dentists offers a huge amount of support, from providing assistance with human resources to buying new equipment. However, the best thing about becoming a member of the Lumino The Dentists team is the knowledge that if anything should happen to me the practice will carry on and my staff will be safe and secure in their jobs.'

Adam Doudney, Smile Studio, Orewa:

'I owned Smile Studio for six years prior to approaching Lumino The Dentists. They were a wonderful six years but being the owner, as well as head dentist, was a heavy weight on my shoulders. As owner, even when you are away from work you are still thinking about it constantly. Selling the practice was definitely the right choice for me and my family. Now we have more time to do the other things which we enjoy, such as our voluntary work and involvement with our church.

Lumino The Dentists made the whole acquisition process straightforward, quick and easy. There have been no major changes in the day to day running of the practice although we do now have a practice manager, who has eased my load considerably.

The Lumino The Dentists head office gives us as much support as we want. We have been able to acquire equipment that we may never have been able to buy previously. Access to continued education, which includes an annual conference, is also a huge benefit.'