No Images? Click here DENTAL NEWSLETTER April 2018 Carl Burroughs rises again and again!According to Kikada Lane Dental, a business name associated with Peter Hughes who has a company called Kikada Lane Pty Ltd, Carl Burroughs is its “Marketing Director” and has a marketing company “Integrated Dental Marketing” (IDM) – we note that Integrated Dental Marketing is not a currently registered company but exists as a business name only. So the information circulated is false. According to Kikada Lane Dental, Carl Burroughs is one of the original founders of Dental Partners (now Maven Dental) in 2007. However we note that the original Dental Partners company was quietly put to bed and another company called Dental Partners Ltd with a different ACN rose out of the ashes! Mr Burroughs has an intriguing history According to a notice in the Commonwealth Gazette of 24th May 2011 a company called Burroughs Consulting Pty Ltd formerly known as Integrated Dental Marketing Pty Ltd was wound up as the company was unable to pay its debts. The notice was placed by the liquidator of the company. Earlier in 2007 Carl Burroughs was promoted in Dental Partners’ first approach to dentists as being “the founder and principal” in Integrated Dental Marketing, a company which turned out to have been de-registered on the 20th August 2006! But previous information revealed that its directors had been Alison King and David Johnson. The company’s shares were held by Eclipse Pacific Pty Ltd and that company’s director and sole shareholder was Stephen Cuthbertson who lived in Fiji! Therefore the original Dental Partners information contained a false statement (amongst many other dubious statements as it turned out). More recently a creditors report by court appointed liquidator Bruce Gleeson of 7th March 2018 referred to the liquidation of ACN 118 850 427 Pty Ltd formerly known as Integrated Dental and formerly trading as:- Marketing Dentistry, Burroughs Consulting Group, I/D Marketing, IDM, Integrated Dental Laboratories and Integrated Dental Marketing. We note that according to Kikada Lane Dental “Carl also owns his own dental practices...”. These practices are at Noosa, Woombye and Beerwah in Queensland which he conducts via a company called Valudent Pty Ltd of which he is the sole shareholder. He is also the sole shareholder of a company called Dentemail Pty Ltd, ACN 614 743 261. This company changed its name from Valudent Emerald Pty Ltd on 19th May 2017. So even as his previous company of many names was being liquidated, he had his own dental practices! That might not have impressed the creditors to his corporate failures, but we have to admire his resilience. Mr Burroughs’ companies, businesses and business names are more resilient than cats with nine lives! Peter Hughes’s scheme We note that Peter Hughes’s Kikada Lane boasts of “building the next generation of brilliant leaders in dentistry”. None of the profiles presented are dentists, but they do include Carl Burroughs. We wonder why he has included Carl Burroughs, a person with multiple failed businesses in his team of brilliant leaders.
Earlier, Carl Burroughs was busy with his old associate, Mike Timoney, in chasing dentists to sign up with Smiles Inc, more recently known as Smiles Inclusive Ltd, in what Synstrat regards as being a structurally unsound business proposition as revealed in its prospectus – refer to Synstrat Dental Publications at www.Synstrat.com.au. It appears that he has now jumped ship to the Peter Hughes scheme Peter Hughes was previously with Ekera, another dental aggregator. We refer dentists to our article, “Peter Hughes 50% ownership scheme” at Dental Publications on the Synstrat website. What should dentists do? In our view the Smiles Inclusive Ltd prospectus indicates a structurally unsound business proposition and we advise any dentist who has not signed a binding contract to defer any decision until that company is up and operating and has a track record. In respect of the Peter Hughes proposition, we offer similar advice. Neither Dr Peter Hughes (the doctorate is from business studies) nor Mike Timoney are dentists, and as far as we are aware neither have an existing network of dental practices under their management at this time and therefore the claims of either must be regarded as unproven. In the case of Smiles Inclusive Ltd we regard the growth in profit shown in the pro-forma accounts as being unachievable. Furthermore we question the existence and the veracity of the pro-forma accounts for 2017 on the basis that it is clear from comments elsewhere in the prospectus that there is no guarantee that all of the practices on which it was based will be part of the roll up post IPO. In the case of the Peter Hughes scheme we refer to our previous comments. Whilst this writer chooses not to be a shareholder in any dental aggregator in order to retain objectivity, it is worth pointing out that 1300 Smiles Ltd and Pacific Smiles Ltd were both run by successful dentists who were already running a network of practices before they listed on the stockmarket. As neither Mike Timoney/Smiles Inclusive Ltd or Peter Hughes/Kikada Lane Dental have a network of dental practices running, we regard both as presenting significant investment risk. Phineas T Barnum Phineas the famous American showman bragged that there was a sucker born every minute. A request to dentists Synstrat’s email list of dentists is never as broad as we would like. We ask that dentists who belong to various dental forums pass on our communication, and we invite dentists receiving it in a secondary manner to email cheryl@synstrat.com.au and request to be put onto our dental email list. If any dentist has further information on the above events, or wishes to comment on what we have said, please email cheryl@synstrat.com.au Financial Planning and Life Insurance for Dentists Synstrat is experienced at providing financial plans for dentists. These take into account dental practice profitability and benchmarks, as well as ownership of premises and other family assets and other financial issues. Telephone Graham Middleton, Cameron Darnley or Roger Armitage, each of whom are experienced financial planners, on 03 9843 7777. Cameron can also assist with life insurance. Synstrat Management Pty Ltd holds its own licence. It is not obliged to recommend the products of a particular bank or insurance company. Valuations - Marital Property Settlement Synstrat is the most experienced valuer of dental specialist and general practices for the purposes of determining the practice’s value to be taken into account in a property settlement. Our experience is that even when challenged, our valuations are recognised as being the most authoritative source available and ultimately this saves substantial ongoing legal and related fees in shortening a dispute. Contact Graham Middleton or David Collins (03) 9843 7777. Practice Valuations – Buy/Sell Synstrat has 24 years of experience in valuing dental practices for purchase or sale or sale of associateship or partnership interests – contact Graham Middleton or David Collins (03) 9843 7777. The Big Practice Con Read about “The Big Practice Con”, a story which is loosely based on an actual event in Synstrat Dental Stories. This intriguing story is on page 39 of Synstrat Dental Stories. This 335 page book is a must read for dentists. It details a series of good and bad practice experiences but names and some details have been changed to preserve identities. It contains valuable insights for practice owners and intending buyers as to what works best and what doesn’t. To obtain a copy of this publication, make a tax deductible donation of at least $30 to the Delany Foundation, a charity which brings hope and opportunity into the lives of young people deprived of education in Australia, Papua New Guinea, Kenya and Ghana. Once you have made your donation, please email confirmation of your donation along with your postal address to cheryl@synstrat.com.au and a copy will be sent to you. Donations can be made by mail to: Delany Foundation PO Box 429 CASULA MALL NSW 2170 Or via direct debit to the Delany Foundation Ancillary Trust, BSB 062 784 CBA account number 4050 5402. Should you have any difficulties, contact Matthew Mahoney on 0419 202 787 or 02 9600 8184. Are you buying a dental practice? Synstrat can assist by analysing the practice financials, valuing the practice, assisting in negotiations, advising on business structures and providing ongoing accounting and practice performance benchmarking services. We also provide financial services which takes into account short and long term dental practice performance and strategy and marries that to personal and wealth creation goals. Contact Graham Middleton or David Collins (03) 9843 7777. Best wishes to all dentists, Graham Middleton and the Synstrat Team The Synstrat Group are Australia's most experienced Dental practice business advisers, accountants, practice valuers and licensed financial advisers. The information contained herein is of a general nature and no specific action should be taken without individual advice. Synstrat Management Pty Ltd P. 03 9843 7777 ABN 57 006 295 325 If you are not the intended recipient of this communication please delete and destroy all copies of this message and telephone Synstrat on +61 3 9843 7777 immediately. If you are the intended recipient of this communication you should not copy, disclose or distribute this communication without the authority of Synstrat. Any views expressed in this communication are those of the individual sender, except wh ere the sender specifically states them to be the views of Synstrat. If you do not wish to receive this email in future, please reply to the sender requesting termination of service. |