Numerous dentists have been approached by Dr Peter Hughes, formerly of Ekera, a dental corporate. Dr Hughes is seeking interest in a variation of the “Buy part of your practice strategy”. At first glance it’s more attractive at face value than the scheme posed by Mike Timoney and Carl Burroughs but still has its “Hooks.”
Many dentists who sold to dental corporates have been disenchanted by their experiences.
This proposal glosses over key issues and problems, like:
What happens if the Hughes scheme does not get to critical mass and 50 percent owned practices are caught in a financial no mans land? or
What happens if it gets to a size which is too small to have a viable stockmarket listing and the Hughes interest is sold to another corporate like Dental Corporation (owned by Bupa) or Pacific Smiles (aligned with NIB)? or
Why would any dentist with say 15 years to likely retirement even consider being hooked into a scheme such as this while they are generating good profits, superannuating themselves and their spouse, building the goodwill and profits of their practice, improving their practice premises and doubling their net wealth over a period of around six years? It’s long been evident to Synstrat that some dentists have an incomplete view of their own financial situation and need informed advice.
These schemes look superficially attractive but shouldn’t be rushed into. Remember the devil is almost always in the detail or glossed over.
Dentists in their prime have far more to gain by running their own practices until they are within about three to four years of retirement. With proper business structure in place, proper business and accounting advice and appropriate sharing of ownership with spouses, there is far more to be gained from owning and conducting a good practice over a period of years than being hooked into a corporate deal. Indeed I doubt that many of the corporates really understand this.
Once you sell 50 percent the remaining 50 percent is captive to what the corporate does and you effectively lose control of the destiny of your practice.
Dentists wishing to obtain advice on their practice’s value or their specific options are invited to consult Synstrat on 03 9843 7777, or email firstname.lastname@example.org
Best wishes to all dentists,
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