DSO Affiliations the Emerging DSO Model - DSO Infrastructure and Accounting
Value Proposition of the Affiliation:
Single practices selling for 5-6x multiple of EBITDA have the opportunity to sell at a 12-15x of EBITDA.
A practice grossing $1,500,000 with 20% EBITDA may sell for $1,250,000 or 85% of collections.
The same practice with a fully integrated platform meeting all the criteria of a Capital Partner may sell for 13-15x or $4,200,000.
Why is This True?
Private Equity is looking for a qualified platform to deploy their capital (often times in excess of $400,000,000)
A qualified platform is one that is fully integrated and has the expertise and capacity to invest future funds and has the following attributes:
- Accounting and reporting on accrual basis with comprehensive metrics
- One practice management system
- Full HR integration
- A business operating system
- An in place qualified team including a CEO, CFO and COO - - Pipeline of acquisitions
- A Platform then purchases sites for a 5-6x or opens de novo’s
Private Equity is willing to pay 13-15x for this infrastructure. This is happing on a regular basis (daily)
Join Us As We Discuss
The Affiliation Model - Building Affiliation Infrastructure - DSO Accounting:
Meet with Some Affiliates in the Making
Detroit - Sept 20th - 6:30 PM -9:00 PM ET
Grand Rapids - Sept 21st - 6:30 PM -9:00 PM ET
Memphis - Oct 12th- 6:30 PM - 9:00 PM CT
Nashville - Oct 13th - 6:30 PM -9:00 PM CT
Knoxville - Oct 14th - 9:30 AM -12:30 PM ET
To Register email - firstname.lastname@example.org Limited Seating or 919-710-7376
Online registration not available for this event - Limited Seating and Prequalification Required to Attend