Independence DSO is honored to be featured on GroupDentistryNow.com. Our excerpt is included below. To read the full article, click here: www.groupdentistrynow.com/dso-group-blog/emerging-dental-groups-to-watch-in-2021.
Independence Dental Services (IDSO) formed at the onset of the pandemic with eight locations in Texas, Missouri, Maryland, and Pennsylvania. Founded by the key executives listed below, the emerging dental group wants to grow to 20-25 practices in markets across the U.S. this year.
One of this emerging dental group’s founders, Lane Theriault, was one of the original founders of the second-largest DSO in Canada, 123Dentist. He felt the U.S. market was ripe for the joint venture model which had brought them great success in Canada.
IDSOs’ mission is to provide a joint venture platform for established general and pediatric dentists to access the financial equity of their practices and receive the benefits and support from a DSO when and where they want it.
As their business model does not require the build out of a large operations team, they are able to partner with practices in both large and smaller markets that traditional DSOs have avoided.
IDSO contractually commits that the dentist remains in control and has the autonomy to continue running the practice as they feel best. Although they ensure autonomy, IDSO is an active partner in helping to drive growth when help is desired. They have multiple agreements in place to assist their partners with marketing, equipment and supplies procurement, PPO negotiations, IT and training and education.
This emerging dental group does not charge management fees to its partners and does not employ a clinical director. Their philosophy is that each dental practice owner is the clinical director.
With a strategy of affiliation and sub-DSO growth, they offer a second payment at the same initial purchase multiple of EBITDA growth after one year, which provides an incentive to partner for growth. IDSO will also fund the purchases of sub-DSO practices with a cash offering to the new owner of the sub-DSO practice.
Paying above market price for established, multi-associate practices, they allow dentists to retain a minimum of 20% ownership in the practice. IDSO also offers their partners the opportunity to buy into the parent company shares if they choose.
They have recently been backed by The Firmament Group, a provider of tailored debt and equity capital solutions to small- and medium-sized enterprises. Together, they will work to rapidly scale across all states beginning with larger multi-doctor offices and add solo practices and specialty groups in markets where they have multiple offices. Over the long term, they plan to include more select specialty practices.
Key successes of the group: $10 Million of EBITDA on first closings.
Business challenges of the group: Finding enough high-quality multi-doctor practices who are willing to partner with them for a minimum of five years.
Key executives in the group: