NMDA Journal Winter 2019

nmdental.org 23 It’s best to check your “gut feeling” on any issue. If it does not “feel” right, then they should seek greater understanding and obtain additional information until it does feel right. And if you still feel uncertain about it, you should either ask for revisions to the agreement or no longer pursue the transaction. Just because other doctors have signed off on similar agreements, doesn’t mean it’s right for you. If handled correctly, transitioning a practice to a DSO could be rewarding—personally and professionally—to both par- ties. Success is the goal of virtually every business venture. And although doing business with a DSO can be inherently risky, it’s possible to structure and benefit from a successful arrangement with a DSO by following some of the informa- tion we have outlined above. In summary, crunch the num- bers, define expectations, do your homework, and seek ad- vice. Attention to these things will increase your likelihood of a successful outcome. last over the long term. For this reason, some doctors are just not meant to work for or be partners with a DSO. Frankly stated, some doctors are meant to be the “captains of their own ship.” They have a certain way of doing things and pre- fer not to be encumbered by what a DSO says and does. If you think you might be this type of doctor, don’t talk your- self into thinking that the sale or merger will be right for you. Everyone has a different approach to business and a differ- ent way of doing dentistry. Define your expectations and motivations in advance and seek to understand theirs in return. Each party is pursuing a practice transition arrangement but for very different reasons. It is important they have complimentary needs and similar values. Failed arrangements usually fail be- cause the parties have incongruent expectations. In other words, one of the parties is expecting something to happen or for things to happen a certain way, yet somehow those expec- tations were not met. It’s best to check with other doctors that have sold or merged their practices with the prospective DSO and get their input. An ounce of prevention is worth a pound of cure. Similarly, it is more difficult to turn back time in an at- tempt to correct a problem than it is to address those issues in advance. Seek professional help and define the arrangement in writing. Contracts help define promises between two parties with their mutual and respective rights and obligations, along with con- sequences in the forms of rewards and penalties. Ideally these promises create a win-win outcome in which both parties are pleased. However, problems often occur when one or both of the parties seek only their own interests with little or no consideration for others or without considering the longer- term impact of their actions. Sometimes negotiations result in one party getting their ideal result, but at the expense of the other party. Many issues could have avoided undesirable results by asking the following questions before entering into any agreement: Does the agreement further your personal short and long-range goals? Does the outcome of the agreement fit into your objectives? Do both parties feel good about and comfortable with the terms of the agreement? Has any pos- sibility of resentment as a result of uncomfortable compromises been removed? Based on all the information, can both sides perform the agreement to their expectations? Point 3 Point 4 1 2 3 Matching your values with a DSO possessing similar values is very important. About the Author Marie Chatterley is with CTC Associates, a practice transition company located in the Rocky mountain region that has facilitated over 2,000 practice transitions over the last 30 years. Contact Marie at (505) 577-6698 or www.ctc-associates.com