Chip Fichtner is the co-founder of Large Practice Sales and a return guest on the podcast. His firm helps practice owners complete transactions and partner with DSOs and "invisible" DSOs who allow the doctor to maintain autonomy and a minority position. We last spoke on the podcast about two years ago. Because of our episode, his firm closed a $50+ million dollar deal on a large pediatric office.
Chip has a tight pulse on what's going on in the DSO world. I wanted to get an update on what DSOs are doing with pediatric practices in light of the higher interest rates. I try to ask Chip some tougher questions in this interview.
In this episode, we discuss:
Is access to capital an issue for DSOs right now?
Have we seen any DSOs struggle or go under because of lower free cash flow?
What happens to the dentist's retained equity in the parent company if the parent company fails?
Who calculates EBITDA in these transactions, and where does all the variability come from?
How does LPS keep tabs and verify the quality and financials of the DSOs they work with?
What does the ideal pediatric dental practice look like in terms of commanding a high multiple?
Chip can be reached at www.largepracticesales.com
