- Wes ReadCEO, Platform StrategistCPA, CFP
- Drew PhillpsVP of Business Development and Platform StrategyCPA
- Matt OdgersVP of Business Development and Platform StrategyJ.D.
- Erin ReadPlatform Technical Support Manager
Practice Orbit is creating a centralized option for dentists, dental brokers, and their service providers (CPAs, attorneys, bankers, etc.) to sell their dental practice. Similar to how Airbnb brings together its users, Practice Orbit is bringing together seller with buyers through it’s online ecosystem of dentists that have created their free Practice Orbit accounts.
Additionally, Practice Orbit gives them tools to facilitate a smooth transition. Practice Orbit does this by (1) providing sellers with a price estimator to value and list their practice and (2) introducing dentists to experienced dental attorneys, accountants, banks and brokers (if needed) to help them through the transition (if they don’t already have these service providers).
Practice sellers or their brokers pay only 2% of the sale price to Practice Orbit if (and only if) they find a buyer through the platform. If not, they pay nothing and lose nothing.
Associate dentists buying a practice pay nothing to Practice Orbit.
The founders, two dental CPAs and one dental attorney, have long felt there is a market need for a technology-based marketplace to bring together dentists and dental transition service providers. The dental sale marketplace is highly fragmented with dental practice sellers “asking around” for buyers or using a local broker’s rolodex to sell their practice. Today, good technology can consolidate the supply and demand of dental practices to create transparency, efficiency, education, and trust.
Below are the benefits to dental practice (1) sellers and (2) buyers:
Practice Orbit is a resource to dental practice owners/seller in the following ways:
- Practice owners who wish to sell their practice without a dental broker (i.e. “For Sale by Owner”) can do so through the Practice Orbit system. Sellers may, however, still wish to use their broker to manage the transaction communication and logistics and receive guidance. We believe its a personal decision to use a broker or not and respect both options. Practice Orbit is neutral on this decision and supports both sellers and brokers.
- Practice owners can create an account and use the “Price Estimator” feature to get a reasonable estimate of the value of their practice by entering in six numbers from their tax return. Additionally, they can easily determine their net proceeds after taxes, debt, and selling costs if they sold their practice at any of the price estimators low, medium, and high estimates. (i.e. what will you take home after the dust settles!)
- Practice owners can easily and anonymously display their practice on the site (like a home on Zillow or Redfin), while buyers can effortlessly locate a practice and initiate an inquiry within the platform through the built-in notification system. It’s important to note that by anonymous we mean (1) users must create an account and be verified to see the practice profile beyond the anonymous highlights and (2) for all users, even logged-in verified users, we don’t display names, addresses, identifiable photos, or any other identifiable information. The practice will show up as a pin on the larger city more generally. Only after a buyer inquires and signs a non-disclosure agreement, approved by the seller, is the full practice’s identifiable information released to a given interested buyer.
- Practice Owners can rest assured that all users are verified through our 3rd party verification system, as well as a personal contact from one of our team members.
- Practice Owners can use our easy-to-fill forms to create their practice profile.
- Practice Owners don’t pay a technology fee to Practice Orbit unless they sell their practice to a Practice Orbit-produced buyer.
- Practice owners can take advantage of our built-in Non-Disclosure Agreement (NDA) and Letter of Intent (LOI) to easily handle e-signatures.
- Practice Owner can use our built-in document management system to easily have all due diligence documents ready for release to the buyer once the LOI is signed.
- Practice Owners can invite their team members (e.g. accountant and attorney) into the system to help complete their practice profile and participate in a group chat between you and an interested buyer.
- Practice Owners can see their estimated EBITDA, a key number requested by institutional buyers.
- Practice Owners will receive a daily email summary of all notifications for that day so they stay tuned into the activity on their account.
- Practice Owners with more than one practice can create a profile for each practice!
- Practice Owners can look up dental specific service providers to help them through the transaction (brokers, accountants, and attorneys) through our built-in directory.
- And more!
Practice Orbit can be a resource to dental practice buyers in the following ways:
- Associates can search for practices available for sell on the platform. They can filter their search by location and specialty.
- Institutional buyers can also identify practices that fit their target geography and practice profile. Additionally, Practice Orbit calculates an estimated EBITDA for analysis.
- All buyers can “star” their favorite practices which will then be grouped in their “My Dashboard” page.
- Associates can see what their estimated net take-home pay would be after overhead and debt. And they can see this even before submitting a formal inquiry to the practice owner or broker.
- Buyers can look up dental specific service providers to help them through the transaction (brokers, accountants, and attorneys) through our built-in directory.
In addition to the powerful savings and efficiency opportunities that Practice Orbit offers to dentists, in time it can serve as the “MLS” of practice sales. When you buy a home, you have great tools like Redfin and Zillow to aid in your search by providing helpful comparable data. Imagine a dental market where data on private dental practice sales was accessible in the same manner. The increased transparency and standardization of information will lead to greater comparability across practices. More certainty around practice valuations will lead to deals being consummated faster and more confidently. It can also consolidate the pool of buyers into one central place.
Note. Practice Orbit is not a broker or real estate company. Rather it is a technology company intended to support the dental transition community.
Wes Read CPA, CFP
Drew Phillips CPA
Matt Odgers, Esq.