Australasian Dentist Issue 93

98 AUSTRALASIAN DENTIST AQUISITIONS J ust as the dental school does not train you on the business aspects of running a practice, the dental profession offers scant advice when it comes to selling one. In fact, you may even have to venture beyond the cloistered world of dentistry for help. After investing 15 years building up a multi-site practice, Dr Paul Ansell found himself speaking to bankers, accountants, practice brokers and others outside his field of expertise. The Aussie dentist wanted to better understand the dental marketplace while assessing his sale options. “For me, the process was very interesting, and gave me a good insight into the larger world of business. I would keep up to date with how practices are being valued and understand the broad economic drivers,” Dr Ansell says. In the process, he admits gaining newfound appreciation for the work lawyers and business negotiators do on behalf of their clients. “I figured they all just went for long lunches most days,” he quips, “but it turns out there is a bit more going on.” Milestone year Having recently sold off a group practice where he was a quarter of the partnership, Dr Ansell distilswhat he thinks is requiredof the seller and constitutes a “fundamentally sound” deal. “Be prepared and be informed,” he summarises. “Get the most of your money upfront and the rest over time if performance goals are being satisfied, with the chance of future upside.” Dr Ansell received his dental degree from the University of Queensland, graduating with honours in 2001. Soon thereafter, the former student of St Laurence’s College commenced practice with Coopers Plains Dental Surgery (now known as CP Dental). He became a partner in 2005. Interestingly, the sale of CP Dental in July neatly capped Dr Ansell’s 20th year in private practice and 15th as practice owner. “It was good timing and an opportunity to realise the value that had been created Part of something bigger Dr Paul Ansell shares pragmatic insights for choosing a practice buyer, and what due diligence looks like. By Danny Chan by the group over a long period of time,” he says. Founded in 1970, CP Dental is a thriving South Brisbane practice with three locations in Coopers Plains, Mater Hill and Emerald. Prior to the sale, the dental partnership comprised of Dr Ansell, Dr Jonathan Cichero, Dr Esther Cheng and Dr Daniel Robbins. The size of the 20-chair group practice made it an overreaching sales pitch targeting private buyers, so the partners decided early on that selling to a corporate acquisition firm would be the best way forward. Fortunately for them, there was no lack of potential suitors. CP Dental’s steady growth trajectory had garnered enthusiastic interest from the industry. Due diligence paid off Sieving through the stack of offers required abit of work. It tookfive years andnumerous discussions before the partners decided on Ekera Dental, a Melbourne-based practice aggregator with over 40 practice brands under its umbrella. “We had several interactions with Ekera over a 24-month period, and always found them to be consistent, fair and patient when it came to discussion, fact finding and ultimately negotiating,” Dr Ansell says. “The collective terms offered by the dental corporation were more favourable than could have been achieved elsewhere, on several fronts.” Citing ‘change management’ as one of the key considerations when choosing a practice buyer, Dr Ansell says the partners did their best to avoid ‘significant turmoil’. That Ekera Dental has a reputation for not rebranding their practices after acquiring them was a major drawcard. In hindsight, the dentist can attest that the practice buyer had indeed “preserved the identity and the ethos of CP Dental.” “We have a mature professional relationship with a lot of individuals who felt a sense of connection to the practice,” he says.