What is Buying a Dental Practice Really Like?

How do you make sure your dental practice transition is successful? Whether you are buying or selling it is important to know the process, and find experts you trust to guide you through it. We recently spoke with Jordan Mortensen, DMD, of Austin, about his experience buying a dental practice in Texas. Dr. Mortensen explains how he was able to acquire a dental practice in just 3 weeks, and why it is essential to have a trusted professional advocating for you during a dental practice transition. 

Q: When did you start looking for dental practices to buy?

Dr. Mortensen: “As a third year dental student, I knew I wanted to buy a practice coming out of school. And so I reached out to several practices that were on the market here in the Austin area and happened to meet Randy Kinnison and Andy Edmister at that time. I’ve basically met every broker in the Austin area. All of them know me by name, and so, coming out of school, I actually closed on a practice with a different broker.” 

Q. After your first experience buying a dental practice in Texas you made plans for growth. How did the experts at DDSmatch Southwest help with those plans?

Dr. Mortensen: “I was planning on making some different growth plans here in the Austin area. And it was right around the COVID time. This is when the state of Texas was shutting down several dental offices. I felt like it was important for me to reach out and see, ‘Hey, what’s the pulse on some of these older doctors in the area that are selling their practices?’ And so I sent Randy a text and I asked him, ‘Hey, anything new going on in the Austin area? If you have a moment, I’d love to hop on the phone with you today.’ He said, ‘Actually, we have a practice that’s a couple blocks away from you that we think you should look into. Andy is there in Austin right now. He’d love to meet with you.’ So I met with him that night and we got a merger done. I merged my practice with this other office where they were representing the selling doctor. We got this merger done within three weeks.”

Q. Three weeks is a short timeline for buying a dental practice in Texas. What role did DDSmatch Southwest play in making it happen so quickly?

Dr. Mortensen: “Having two people that understand the market and understand the needs of the selling doctor. They presented it to me in a way that was very advantageous for me to come in and try to get things done in a very quick, efficient way. They were stellar, so we were able to get this deal done. Not only did they represent the doctor and got the selling doctor what he wanted and helped protect the selling doctor in the value that he brought forth with his practice, but I felt like they were a strong advocate for me and what I was trying to do in growing my practice.”

Q. Did you look to anyone else for advice before or during the process of buying a dental practice?

Dr. Mortensen: “I’ve always been a strong advocate of learning from those that have come before us. I find that I can make all my own mistakes by myself. That’s the importance of having a mentor. So coming into this acquisition, this growth by acquisition if you will, I actually hired a mentor that’s gone through about seven of these acquisitions in his own practice. I basically used the outline of what he’s gone through, step by step. From how he sent out a mailer to all the old doctor’s patients, to the verbiage that he used in that mailer, to even the training for the internal team here to handle the influx of patients and even handling an older doctor. The transition would not have gone as smooth had I not hired an outside mentor to walk me through this growth by acquisition process.”

Q. Even though the team at DDSmatch Southwest worked for the selling doctor, were they also helpful to you during the process?

Dr. Mortensen: “Andy has a lot of experience in managing practices. So, when we closed both of them were also in it for my growth and my experience. And that’s one thing that I’ve loved about them. You know, they’ve constantly checked in and said, “Hey, how are things going? Can we help you out with anything?” And Andy, with a lot of his experience in the dental industry, he has personally said, “Hey, if you need anything, let me know. You know, I’ve got some templates, and different things like that.” I ended up using a different mentor of mine, but they were every bit an advocate for me and my growth in this deal. I very much could have utilized their help in making sure that this acquisition was successful.” 

Q. What was the evaluation process like? Did the team at DDSmatch Southwest give you access to all the information you needed to make a good decision?

Dr. Mortensen “For sure. They got me all of the reports that I needed. They gave me access to the older doctor’s space to make sure that I had done my due diligence. And then they even verified that I had done all the due diligence I needed to make sure I made a smart decision. They were very much strong advocates in making sure proper due diligence was done before we pushed this deal done in three weeks. They said, ‘while, yes, time is of the essence, and we’d love to get this done soon. At the same time, we have to be respectful to you and the due diligence process.’ Like I said earlier, I’ve been in contact with most brokers, it’s kind of what I do. So, I kind of knew coming into it what I was needing. But they met every expectation in regards to what I needed to make an educated decision.”

Q. Has buying a dental practice brought the growth you were looking for?

Dr. Mortensen: “Since we closed in about mid-June, my practice has tripled in growth due to that acquisition. For a lack of a better way to explain it, we’ve gone gangbusters. It’s just been very busy, which is something that I’m very grateful for. I’m very grateful for Randy and Andy for keeping me in the loop. But more importantly for being a strong advocate for me and understanding my desire to grow. And their ability to just keep me in mind. They reached out to me and we got the deal done in three weeks.”

Q. Many doctors are cautious about selling or buying a dental practice in the near future due to COVID-19. Your transition process, however, was smooth and successful. What do you think made your transition go so well?

Dr. Mortensen: “I believe there’s really two types of people out there. I think we’ve all heard the analogy of the glass half full versus the glass half empty. COVID has been a very scary thing, there’s been a lot of unknown things about it. There’s been a lot of things that I think make a lot of us just kind of shake our heads a little bit and ask, ‘what’s going on? Are we really going through this right now?’ And I definitely am a glass half full person, I’m very optimistic. I try very hard to look at different circumstances and look to the positive.

“My first thought was that there are going to be people, companies and individuals, that come out of COVID better than when we went into it. In every event in the history of the world, there are people that look at these opportunities and come out better. I wasn’t going to be one of those that was scared or that was going to look down on it. We followed every rule to the T here in Texas. They shut us down and we shut down. We only saw emergencies, one day a week. We followed every single rule. But the last thing I was going to do was spend my time twiddling my thumbs, waiting to get back to work. And I felt like Randy and Andy, they were in very much the same way. They’ve looked at this like, ‘Hey, you know what, this could be an opportunity to represent some doctors and to help some younger doctors grow.’ 

“I very much appreciate their attitude towards a worldwide pandemic like COVID. They’ve viewed this as an opportunity. An opportunity to help doctors grow, help them cash in on the value by selling their practice, and maintain their value during the selling of their practice. I’m just thankful that I was one of the doctors that they were able to reach out to, that they were able to sell one of their practices to.”

Q. After buying a dental practice with the help of DDSmatch Southwest what are some of the impressions you have of their team? 

Dr. Mortensen “You know, the one thing that I have loved about Randy and Andy, and seriously, I’ve talked to every broker here in the Austin area, but one thing that I have loved about them is their transparency. They’re not hiding anything. If I asked them, ‘Hey, is there another buyer behind me if I can’t pull this trigger?’ They’re like, ‘Absolutely, we’ve got two lined up.’ Transparency is everything. I believe those that could really benefit from Randy and Andy and their services are those that appreciate transparency, that appreciate straight talk. Letting them know, ‘Hey, this is what this deal is. This is what this doctor is expecting.’ 

“They’ll also go to bat for you. If you’re the buyer and you’re looking for something else, they will try to help prime the seller to make sure both parties meet. They’re a strong intermediary and advocate for both sides. Randy and Andy were very helpful in just helping me learn about the buying process. They are just classic West Texas; just good people. And it’s just nice to work with people that care about others. But more importantly, they just really stand by their work. They want to make sure that both parties are having a good experience. While, yes, they represent the selling doctor, I also felt like, in many ways, I had an advocate on my side.”

Q. Would you recommend DDSmatch Southwest to other dentists considering selling or buying a dental practice?

Dr. Mortensen: “Honestly, I think if dentists are looking for somebody to represent them, I don’t think they could find a better team to represent their practice than the two of them. They are very transparent and they are looking to achieve what the doctors want. You know, the doctor that I did this acquisition with, he needed to be out in a month and they said, ‘Well, let us try our best.’ It was advantageous for me, but it was also advantageous for the selling doctor in the sense that they represented him and met his goals. They’re there to help the selling doctors, represent them in their goals and desires, and they do it in a very transparent and honest way.”

Planning a Dental Practice Transition?

As Dr. Mortensen points out, successful dental transitions are due in large part to the team of experts advising you. This is true whether you are selling or buying a dental practice. Find an experienced dental CPA, dental attorney, and transition specialist such as those at DDSmatch Southwest. With the right team advocating for you and helping you clearly define your goals, everyone will benefit from the transition.

At DDSmatch Southwest we focus on making the transition process advantageous for everyone involved. Through our Trusted Transition Process™ sellers feel confident their practice is in good hands, and buyers know they are buying a practice that will provide stability and room for growth. If you are considering selling or buying a dental practice in the next five years contact our team to start planning now.