7 Ways to Expand a Medical Dental Practice to a national chain

Hi, My name is Dr. Alan Naziri and I'm a full time practice management consultant helping doctors develop, scale and exit their businesses successfully. Today I want to talk to you about practice expansion. There are a number of models that someone can use to expand their practices. Number one is through organic method. Organic method basically talks about being able to take the profit of your practice that you have generated from the revenue and start in another practice. The second one is inorganically or through what we call mergers and acquisition. M and A. And basically what you need to do in this scenario is to acquire other practices that are already running. There are many advantages to that if you're looking for that quick growth. And a lot of publicly listed companies, because they have to.

Satisfy the shareholders, they get into the M and A and sometimes that's good, sometimes it's not bad. But that's a separate story that I'll be happy to consult with anyone who's interested in an M and A process. Number three is to create a management service organization or if you're a dentist and dental service organization, or we can even call MSO as a medical service organization. What it is is they provide certain level of administrat support for the back office and that is one way to bring other companies in place so you can manage them and you can grow your revenue. Another way of growth revenue is what I like to call buying club organization. So if you have a good infrastructure in place, maybe 1, 2, 3 offices, and you already have partnership in place in buying supplies and inventories and negotiating with different suppliers, this may be a good way for you to expand that to other network practices in your area. The other two are franchising. Licensing and franchising is basically like you're having a McDonald's. If you have a good setup, good documented set of, you know, information about systems and processes and that's what I do for a living. I help practices put that information into their, into their systems so they have their intellectual property protected as well as having something that they can basically sell that as a franchise or find investors to invest in their companies. Licensing is another method of expansion. If you have a company with certain name that you like to license the name and basically focus on the marketing and branding of that license, that would be another way to grow. Another way is what I like to call Virginia mergers or virtual expansion. And what that is is basically a financial model, not a business model for those who are looking for quick growth and quick exit. And this certainly I'll be happy to consult on an individual basis on how we can accomplish that. But I do have a video that I highly recommend if you're looking to scale and exit your practice, to purchase and download. And basically in this video, I would cop all of these things in detail as well as review with you. What is it that investors are looking for in order for you, whether you go to this model or this model, and the advantages and disadvantages of each. So I will look at it through different lenses. So the first lens is the lens of investment, which.

Would require high amount of investment versus a low amount of investment. Second is profitability, which one of these models you can expect to have a high level of profitability. Third, we look at cash flow. How would they look in terms of cash flow for an investor? We look at branding. How would the branding of each would work and how would investors look at it in terms of, you know, the brand, the balance sheet? We look at each model, how they would look on the balance sheet in terms of assets and liabilities. We would look at investor interest, which model, which would have more of investor interest. So you don't want to start, you know, growing organically and then find out later that, hey, you know, what the investors are really looking for a company that wants, that is growing more to MA or mergers and acquisition. Then we look at from the valuation standpoint, which one of these will give you the most valuation in the shortest amount of time? And I know that is something that a lot of doctors are interested to learn, and that is something that they must learn early on. A lot of times my clients who contact me late in the process, they're ready to exit, and they ask me, how can I increase the value of my practice? Well.

It'S a complex question to be answered, but it's one that I certainly can help you if we have enough lead time, let's say 12 to 24 months. So I can help you increase the value of your practice that way. The other things that we look at are.

The time, how long each will take you in terms of growth. And that is important, again, from the investor's perspective, which one of these will give you privacy? Not everyone wants to take their company public. Not everyone wants to grow.

Inorganically because then there are more, they have to become more transparent in the management. And finally, we look at the macroeconomic factors that can affect these things. Those are like political factors and more, you know, bigger factors in the marketplace. You know, if you say a global crash or if, you know, we have a stock market crash, which one of these can be affected? And I'LL give you different examples of different companies that have grown in various ways. So I hope you can download this video and, you know, if there are any questions or concerns, please direct message me and I'll be happy to consult with you on a one on one basis. Thank you very much.