Unqualified Practice Brokers Are
Costing Dentists Millions

Episode 11

Maria Melone, former KPMG auditor turned M&A advisor with 100+ dental transactions under her belt, exposes the valuation myths costing dentists millions: "Percentage of collections" isn't a valuation method - it's just a reference point.
Key Revelations:
  • The Direct Solicitation Trap: Buyers make unsolicited offers attractive specifically to prevent you from going to market and creating competition

  • The Advisor Imposter Crisis: Former dental sales reps are now calling themselves M&A advisors without valuation training or deal experience

  • The Buyer Pool Gap: 25-50 buyers vs. 2,500+ buyers = massive value left on the table before you even negotiate

  • The Equity Rollover Minefield: Every DSO and PE firm has different equity terms - most advisors can't decode which deals are favorable vs. high-risk

Sale Process Dentists Get Catastrophically Wrong
AVAILABLE ON

"What's the fastest way to know if my DSO is overstaffed?"

Ken's answer: Watch the 30% revenue threshold. Staff costs (assistants, front office - NOT doctors or hygienists) should stay under 30% of revenue, ideally closer to 25%. Cross that 30% line and you're bleeding efficiency. In today's market, 25% staffing cost means you've built a highly efficient operation that buyers will pay premium multiples for.

The "Ask Ken" Question:

Unqualified brokers are flooding the market with misleading valuations. And here's the kicker: the exact same practice sale can legitimately be framed as 28x, 15x, or 8x EBITDA depending on the calculation method - yet most dentists obsess over the multiple while completely ignoring the other side of the equation.

Ask Ken

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