Berning & Affiliates

In Search Of Young Professionals That Get It

Contemporary younger professionals that are examining practice opportunities often compare an existing practice to one that exists only in their head. Here's an example. Existing solo specialty practice produces $2.2 with a single doctor. A younger professional specialist and his wife, a GP, look at the practice. It is located in an expensive area of the country to purchase a house and live. However, a reasonable projection using existing production would have the young couple taking on the practice and taking home $500-600K to start. This is not shabby. This is after paying on a 5 year purchase note. But the couple turned away from the practice opportunity to start their own practice in a more suburban location. They will now negotiate with lessors, equipment vendors, and a host of others to get their new practice out of the ground. Compare the simple act of signing a purchase contract with a take home income starting the first month with a start up with no income! Hopefully, other younger professionals will see the ease of stepping in as a benefit and not a negative. If they do, they will "get it" - it is more cost effective in my view, assuming valuation and cash flow supports the transaction, to take over a producing practice than to do a start up.

Wired Gives Solid Program For New Orthodontists

I've lost track of the number of CE, study club and major meetings I have presented over the past 26 years. But one event that always is a stand out is the annual Wired For Success program. Why? Because it is held in a room where the presenter, the audience, sponsors and exhibitors hear and participate in every moment. The audience, composed of young orthodontists coming out of their programs, is intensely interested in making the most of their time and they want answers. I enjoyed sharing my presentation, "Start Smart: Practice Transition" with all of them. Overall, Wired provides a solid program offering a perspective from a variety of speakers with an interested audience, that is a formula for success. The program sponsors, Boyd Industries, Hu-Friedy, American Orthodontics, Kodak Dental, Treloar & Heisel and Thermo Fisher deserve recognition for their commitment to helping new orthodontic professionals get the right start.

CEO Dreams Do Come True!

It is always wonderful to hear of doctors really getting all they want from practice and from their life. Here is an excerpt from a recent email I received.

Hello Randy,

Nice to hear from you!! All is well. I bought a large practice in June of 2006. 100% boutique
financing, and I'm making significantly more money in dentistry than I had at any time previously in 10
years!! I do owe a good deal of thanks to you and your lecture at Wired For Success... when you spoke of "The instant doctor". You're lecture inspired me to make a wonderful choice for me and my family. So, I've only been at the practice for 7 months but still managed to increase production over the year by an additional 500,000 dollars, than was projected previously by the old doc and his team. My monthly production averaged 110,000-120,000 before I came and now it is about 180,000 (per month)! I can't tell you how exciting this is! Imagine... I came from nowhere... 1000 miles away - doing medicaid dentistry in Pittsburgh ... I have no special abilities or techniques... I do just plain general preventative
dentistry. This is a dream for me! And every staff member stayed! -And I love em all! The funny thing
is.... there was nobody in line for the practice. (Except for the usual management companies) I did
however locate it, pretty close to the instant that it went on the market... I do confess that I had started
my search as you suggested 1 1/2 years before the practice actually closed. Since June of 2006...
dentistry has realized for me every promise I could have ever imagined. Man I'm lovin' life... and
FLORIDA! Thank you for your help. Now my wife is just beginning her search... but she is ortho and we are tied now to a specific area... but I'm sure something will surface!

Randy, Have a wonderful new year. And thanks again for being a friend and pointing me in the right
direction!

Sincerely,
Joe Shrager

Strong Points Revel A Lot

We use a series of questionnaires when qualifying prospective associate and partner doctors. We are currently working through a partnership with two orthodontists. On one of our questionnaires the prospective partner answered the question, "What strong points do you feel that you are bringing to the practice?" as follows. "I have seven years general dentistry experience and have bought, build up and sold a practice. I have been an officer in the military also which has helped strengthen my leadership qualities. I am punctual, efficient, dependable and a good communicator." When I read this answer I was most impressed with the self assessment provided and the implicit and explicit qualities described. In my view, any senior partner or practice owner reviewing this answer would have to thank their lucky stars that such a candidate is considering their practice! The self knowledge and capability expressed is quite different from some younger professionals who tend to answer in broad generalities. Based on this answer, my view is that this is not an associate level candidate, but rather an immediate partner. These attributes would serve any practice and any partner well. A statement of strong points can speak volumes, if you listen. Try it in your practice the next time you interview a prospective associate, partner, or staff member.

Insights From UCLA Pediatric Dentistry and Orthodontics Presentation

On Thursday, 11/3 I enjoyed presenting for the second time, a perspective on successfully entering practice to the residents as part of their practice administration course. The course coordinators for this segment, Dr. Scott Jacks and Dr. Michael McCartney provide outstanding materials and volunteer speakers to help smooth the path for these younger professionals. In my view, the profession owes them a debt of gratitude. Here are some of my take away impressions and insights from my time with the residents. These bright capable younger professionals, as others in similar programs, can quickly grasp any materials or points made about suggested steps to take to find and enter a practice relationship and the various observations provided. However, the real need is for lots of specifics and illustrations so that the audience, composed of a diverse range career paths including those interested in associateship, partnership, purchase of a practice and even a start up or two, can identify with materials that relate to their career choice. Second, it can be helpful to recount actual negotiations and comment on what composed an equitable transaction. For practice owners looking for an associate, a partner or eventual purchaser it is important to realize the value of providing a detailed orientation to the practice and a structured mentorship once the new professional joins the practice.