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This podcast covers from START to FINISH How to Acquire a Dental Practice. Michael Dinsio, founder of Next Level Consultants has literally seen hundreds of deals as a banker in the industry & he has personally consulted hundreds of dentists as a Buyers Representative. Michael talks with GUEST SPEAKERS about Due Diligence, Legal, Demographics, and more... He invites experts to the show to help you avoid those headaches and heartbreaks. So start at the TOP w/ Episode 01 and work your way through the transition process. We break it down step by step in a true #UNSCRIPTED and genuine way.
00:00
Oh yeah! Here we go! Practice acquisition! There are pitfalls throughout the entire process.
00:25
All right, all right guys, super excited about this episode. Episode three, how to find a dental practice. We're gonna deep dive into a lot of things this episode. I'm interviewing Justin Schaefer, a good long time friend. You'll hear about our history together on the show. But this episode's all about how to find a practice. It's a hot topic. We cover lots of different unique ways to approach the market, some do's and don'ts of how to approach the market and try to find a practice.
00:55
Practices are so hard to find right now. So again, this is a good one for you to kind of think outside the box and not go down the normal easy path. If you could find a practice that was not brokered, there's a lot of good things there. You could potentially get it for less and potentially have a super tight.
01:21
relationship with that seller. so just in general, this is a great episode. But before we get into it, I just want to remind you all I'm a buyer representative. I help doctors buy practices. That's actually what I do full time. And I'd be I'd love to help you if there's anything that I can help even if it's just a free consult. I'm here to serve the community. do this podcast because it's fun and I'm passionate about the industry.
01:46
And I'm here to give you guys super unsolicited, uncensored information. But if you're interested, go to the website, click on Set Up a Free Console, I'm here for you. But without further ado, let's get into it.
02:02
Acquisition Uncensored, the truth when buying and selling a dental practice. And now your host, Michael Dinsio. Man, you can get really jacked up from that intro. This is Mike Dinsio, Acquisition Uncensored. We're having a good time here, folks. I'm super excited about this episode. Episode three, it's really going to be about how to find a practice.
02:31
I get this conversation every single day of the week. How do I find a practice? I got to deal with the practice brokers. What do I do? There's nothing out there for sale. And that's what we're going to break down today is just kind of get into some creative ways to think about how to approach the market. And today's special guest is a longtime friend of mine. In fact, I'm kind of auditioning him today to potentially be a co-host with me.
03:00
Maybe he knew that, maybe he didn't. But this this fella and I go way back. He's a longtime friend. We were bankers at B of A. Folks, you know my background. I was with Bank of America forever and did a lot of transitions. And ironically, this cat mentored me in a lot of ways when it came to looking at deals and looking at cash flow. Before he was a banker, he was an attorney in the health care space. So cool resume attorney.
03:30
Banker, and now he's doing something interesting in the marketplace. We've both moved on from the banking world and thank the Lord above that we are out of that industry. I'll let Justin Schaefer give you the rundown of what he's doing, but hello, Justin. Welcome to the show, my friend. Buddy, that's a lot of pressure. I didn't know I was interviewing today. Well, we're going to roll with it. Maybe we'll do a little poll at the end. I don't know. We'll see.
03:56
I appreciate the time being here. a big fan of, watched a ton of the episodes. I think it's great content. And one thing I will say, it is unscripted. We both agree. This is just you and me having a conversation about 10 plus years experience, working with buyers, working in the transition side. I know early on you highlighted, right? That there's some things you could do to make sure you can find a practice, but there's a whole thing is not to do, all right? Which we could get into.
04:22
as well. So I'm excited about the time frame. And like you were saying, spent 10 years on the banking side, just exclusively with dentists and now working at Appreal, building out a transitions team nationally under an awesome platform that we have in my new company. But today I'm super thrilled to just jump into this, talk about what to do, what not to do, because that's the question I get as well. And for every time we have a seller, I'm seeing eight to 10 to 12 people
04:52
on a lot of these transactions and especially some deals that I think are highly competitive markets and buyers that are doing all the right things. Well, how do you still get that practice? Right. So excited to jump into it. Yeah, man, it's a hot topic because there is no practices to buy right now. And it's why my startup stuff is blowing up as well because the startup is always like,
05:22
And by the way, for those of you that just jumped into what we're doing here, you got to check out the other podcast called Startup Uncensored. We had a blast in that entire season. Had a lot of laughs, a lot of interviews. We break down how to do a startup from literally beginning to end, but this particular podcast is the opposite and it's how to do an acquisition from start to end. We started with interviewing Cindy Polly, who's a dentist, who's bought and sold many practices.
05:50
did demographics and now we're into how to find a practice. Next lineup is shark broker week, practice broker week, shark week. We did shark week in startup uncensored with all of the real estate brokers. This round we're going to do shark practice broker week and Justin will be back in that lineup actually representing his company. for today, how to buy practice, but Justin.
06:20
I love where you're going with that. What not to do. Today was about what to do, find a practice. I'm digging where you just went, not to do. Let's talk about it. Let's hit it. What do you think is probably a bad idea when approaching the market to try to find a practice? I think there's a very, very thin line between being too aggressive and not aggressive enough. And what I mean by that is too aggressive
06:49
could be doing things like looking up the doctor or everybody that's within 15 or 20 miles of you and actually calling the office. There's a good chance you're never gonna get to the doctor and inadvertently might say something to a staff member that gets back to the doctor that could cause a whole lot of headaches for somebody else versus maybe sending a letter saying, I'm looking to be maybe a possible associate with the path of being able to buy the practice down the line.
07:17
or maybe looking for a partnership opportunity, which is a completely different tone. If you're driving down the street, you see a house you like, you just don't walk up and just start beating on the door and say, hey, I love your house. This is awesome. Can I see it? Don't call the front office saying, hey, I heard your seller is old and I think I should buy it. Would you connect to me? That's a bad idea. And I did some weird Googling and found out how old I think the dentist is. And I'm thinking there.
07:45
close to retirement age, which is what they do, right? They look for doctors that might be retiring and they try to get in there and try to get in before somebody else does and start talking about their credentials. And a lot of this, you do it. The transitions that work the best are ones where they have a good relationship between the buyer and the seller. That's just starting the whole process of the transition off on the wrong foot. That's the other problem. You're sitting in a terrible tone. Yeah. Yeah. Yeah. I think anything that would
08:15
I think most of you all know this already, but anything that might expose the seller in a sale is not a good idea. I remember back in the day, Justin, when we were bankers, that was like rule one as bankers. You don't call the office and start asking questions. Hey, I hear you're selling your practice. Like, you don't do that. Like even we knew that as bankers, that's a big no-no. And for you,
08:45
all looking for practices. know you're desperate out there to find something because I always say, like, I'd rather you buy practice and do a startup if it's the right practice. And this whole episode, this whole season, this whole podcast is about buying the right practice. If you can't find it, let's do a startup. But but you're desperate to find that right practice. So definitely do not expose. Yeah. The other thing you're exposing yourself to be able to potentially setting a fire along amongst all the employees.
09:13
who you could be managing someday. Right. The doctor is probably going to be the one that's most OK with taking a phone call and just politely saying a transition. But you could spark a whole internal conversation that's not necessary between the office manager, the hygienist, the entire staff in it, overtly by just being unprofessional. Yeah. Yeah. This wasn't really the topic today, but let's hit it for a second. If I always get this like.
09:41
Why does the transition have to be so secret? It's so mean to the hygienist and the team. And I get it. Like it is like you work for someone for 30 years, you love them, you respect them. And then one day that guy or gal that walks in, you've been working for them for 30 years. They say, Hey, I'm selling the practice. And by the way, here's your new buy. Here's the new owner. That sucks. It really, really sucks. I've been in those meetings. There's tears. Uh, it's a bad scene usually.
10:09
But if you do that, Mr. Buyer, Ms. Buyer, you literally can ruin 30 years of an investment that the seller has built over the years. You could ruin it for them because if the team finds out and walks, now the seller has no team and a business that's about to take a huge nosedive in collections, production, whatever.
10:35
And so you can see the risks there, and especially in this market today, you cannot find team members anywhere. You all know that hygienists are asking for so much money. The financials of the business is changing, and so you just can't do that. So I couldn't echo that louder last point on that, Justin. Like you just can't do it. Yeah, and we're thousands of miles away from each other right now. The dental community is very small. So for all those buyers that are looking at practices, there's a group of niche
11:05
whether it's CPAs, attorneys, transition teams, it's very small in the dental community. You don't want to put yourself in a bad light in front of that community early on in your career because you're going to need to align with dental specific experts as you grow, whether you do a startup. And that's just a a bad way to do it. Yeah, totally, totally. Let's let's flip to the actual topic of today's episode, and that is how to find a practice. And man, it.
11:32
The traditional way, which is going to be the next six or seven episodes following this one, is to talk to a broker. We're going to talk to brokers from East Coast all the way over to West Coast. If you're watching on YouTube right now, it's all backwards on here and screws me up. East Coast to West Coast, whatever, coast to coast. And we're going to deep dive and talk about the things you need to be thinking about and what makes a good practice broker.
12:02
you're going to pick up so many great tips and tricks from all of those great brokers. But today, finding something organically, how do you do it? Let's let's start off with letters. You already mentioned it. I love that strategy. It's it's it's what brokers do is sending letters, don't they, Justin? I you work for a pseudo brokerage firm now. So it's very personal. think when you do a letter, it's more of about just saying hello, introducing yourself.
12:31
You're putting yourself out there, you're attaching your resume, right? And remember, the transition might not occur in six months. You might go associate for a year, a year and a half, right? And then that could lead to a transition quicker than you sitting around looking on websites and asking transition teams or brokers for their newest and greatest listing every time it comes. This might not happen overnight, especially in today's world, but you put yourself off on a good footing by highlighting what you've done, where you've worked.
13:01
who you've worked with, the type of clinical skills that you have, why it might be a potential good match. I would say this, there is a big difference between a generic letter and one that's custom, right? A generic one that you send out to 20 doctors near Seattle. No one's gonna tear it up, but if it's personalized, Dr. X, I looked on your website, realized you went to dental school here, you do these types of procedures here, you're open this day of week here.
13:28
Do you agree is a completely different way to establish connectivity early? Thousand percent. I was just going to hit that point. You have to stalk these doctors like it's an ex boyfriend. OK, you you you have to dig into their life and find some commonality. Right. And and connect to them. And by the way, this whole process of buying a practice, finding ways to connect with the seller is going to be.
13:58
is going to be your what I would call your your silver bullet. And this is step one of that is trying to find a connection somehow and appealing to that. And I would even say handwritten probably works best. I would also say multiple letters, multiple touches. I used to work in the print industry. I don't know if Justin even knew that. But before I worked for Bank of America for Justin Newman, I worked for a printing company for six years and
14:27
Was a decent print rep. There's such a thing. Yes, a print rep. But it was a very big commercial print house. We had Victoria's Secret and some really big accounts and stuff. And you do these mass mailings. But everybody knew that mailings takes anything in marketing. takes multiple touches before you're going to get some kind of response. So I would say layer these letters and hit them multiple times.
14:55
and even say like, hey, I sent you a letter. I'm not sure if you got it. Love to hear from you, even if you're not interested. And hey, by the way, if you know anybody else, connect me. I'd be happy to give you a finder's fee. I know that feels greasy, but I mean, it tells the seller or the potential seller that you're serious. And to like the.
15:20
The doctor that's looking to sell their practice might end up hiring a broker transition person on the deal. Even if they do get your letter, they're still going to remember your letter. They're still going to say, hey, I remember that candidate. They've talked to me two or three times. Yes, let's go touch base with them. Because if you're the doctor, you might not want to deal with the financials of actually doing it. You might want to hire somebody to outsource it, but you're still putting yourself in that frontline position of being recognized, being remembered.
15:50
It's no different than if I send you a text say, hey, thanks. Appreciate being on your podcast. It'd be more meaningful if there's something showed up at your office and said, Denzio, that was a lot of fun. Thanks for having me. Appreciate it. Which one goes along? Right. The text that you just scroll like delete with all your other 100 texts or nice little note like man, right. Well, one thousand one one trillion percent. I letters are a great way. That's that's probably one. OK, so.
16:19
There's a word called FizzBos in our industry. Folks, I don't know if you know what that means. Justin and I definitely do. It's for sale by owners. That's what we're fishing for. And to your point, yeah, they might hire a broker later on. But how would you get a hold of more FizzBos? OK, so letter drop we've covered. There's a lot of best practices there. Reach out to me or Justin after this episode. can we can dig into more strategies with the letter, but letters probably the number one that comes to mind.
16:47
What about networking? I know it works. What would be your strategy? We were in the banking industry for so many years. I knew of practices selling. Yes. What about calling bankers, CPAs, Patterson, you name it. And I think that's that's all about your brand. think the first step is you establish as a young doctor your team. That doesn't cost anything. You get pre-qualified with a lender that's showing initiative and that's showing your finance. That's showing you understand your production.
17:16
You talk to a CPA, if you're a young doctor, you're serious about buying a practice, you're gonna need a CPA and attorney on your team, right? Have you talked to one? Do you understand you're gonna need an entity created, you're gonna need XYZ, and then you ask those individuals on your team to start is, hey, I'm looking in this area. Do you have relationships with other individuals in your network that might know of a practices for sale? I'm looking in Walnut Creek, California. I'm looking here.
17:44
Mr. Mrs. CPA, you've seen my resume. Here's my letter that I'm pre-qualified. Start with your own team and then work out because as that team, like you live this world, you're going to go out to lunch as the lender, the CPA and attorney and have 10, 20, 30, 40, 50, 60 deals going on at the same time. You're going to want your name as that dentist being brought up over and over. Hey, do we have anything for Dr. Denzio? I got this resume. It's good.
18:14
They're pre-qualified, they're ready to go. Like start with your own team there. And again, you lived it. What do you think about that approach? I couldn't echo that louder that dentists in general, folks, audience, you guys, some of you, I've seen some of you being natural born killers when it comes to networking. We've all seen those dentists at dental society meetings where they're just like,
18:43
work in the room and you know that dentist, right, Justin? But the majority of the room is not. They're just hanging out. They're there for the free CE. They're going to chit chat to a couple of their buddies, but they're not working the room, right? You have to get into that mentality. Let me put this in perspective. So, to Justin's point, when you're talking to folks, bankers, CPAs, your team,
19:09
Think about this. The world revolves around in this scenario business. A banker wants to do a loan. A CPA wants bookkeeping and accounting work. The attorney wants a practice sale agreement and a lease review. We want business. That's what we do. That's why we're all in the room. Let's call it what it is. And so if you make an impression on these people, they're going to think,
19:39
Oh, maybe I can make some money on this person. Hey, let's be super uncensored here. Like that is the reality. I wrong here? Like we want to put deals together. When did I get paid? When the deal gets done. Not when I first get introduced with the doctor. And if I know there are, which we know, multiple banks, same thing applies, multiple CPAs and multiple attorneys. If I could help that doctor find the practice,
20:07
my chance of winning that deal goes up 95 % because I was a value add. I helped, I cared, I did the extra email, the extra introduction. And I think what Mike and I are trying to echo is that's the industry norm right now. And if you don't have people like that on your team, you're working with the wrong team if they're not going that extra mile and helping you. Right? But the other thing is when you have people like that, utilize them because they want...
20:34
the doctor is their long-term customer, whether you're a bank, whether you're an accounting firm, whether you're a lawyer, use that leverage, right? You, you know, we talk about it all the time, didn't get a ton of business classes, you know, throughout all the years of education. So you need a team around you, leverage that team to help you, help you early and often. And that makes it, that makes, you know, I'm a buyer's rep now, so I don't really care about.
21:00
much of that the politics are just getting a deal done. You all pay me to represent you and tell you which deals great and which ones not. But what I'm saying is, is the network, that's the way the network thinks. That's the way the bankers think. That's the way everybody thinks. And so I always say that like my old pass, and you probably can appreciate this, Justin, my old pass of being a banker, a heavy, heavy networker.
21:24
My networking and my relationships are probably my greatest asset for my clients because when I get into a sticky situation that I've never been a part of, first thing I can do is call my friend who's an attorney or a CPA and ask them a question and they're going to tell me and then they're not going to bill you. that's a great, that's a great thing. So what I'm saying for you all is to adapt that mentality of getting out there and networking with folks that are in the know.
21:52
heavy networking and are touching a lot of deals. And then I, so that's obvious. But the other thing that I want to say is don't have an unhealthy skepticism of this person just because, or these people, just because they want to make money. That's not bad. We live in America. This is a, this is a capitalistic world. And so, you know, they're not going to sell you into something that you shouldn't do. But remember, this is all about opportunity and networking.
22:21
and you want to see all the opportunities. so networking with as many people as possible is a good thing. That doesn't mean that you take their first opportunity that they bring you. No, but I'm just saying activity breeds activity is what I'm trying to say. Yeah. And I think too with with as small as a dental community is there are outstanding professionals. I still got 20, 30, 40, 50 close. Closest of my friends are good people that work in the dental community. How you sustain.
22:49
your line of business, whatever it is in the dental community is by doing a good job for the doctor. Right. And yes, we all have a profession. We all have families. Right. How we feed in the dental industry, our families is doing good work for dentists on stuff that they don't necessarily want to do. Right. Let's get them in the chair. Let's help them find that practice, get the cash flow. So it's not a bad thing at all. It's great if every industry, every industry be dying to have all these experts around them all the time. Tell them what to do. Right. Like
23:19
Totally. My best clients call me years after the transition and be like, Mike, you are the reason I have this practice. Thank you so much. wouldn't have been able to do that without. remember this one doc. I wanted her business so bad as a banker. It didn't work out. I didn't lend her the money, but I made the connection and she came up to me at the trade show and was just like, I love this practice. It's the best thing ever. It's perfect for me. Thank you so much without you, blah, blah, blah.
23:47
You think I care if I got a bank commission? No, she's going to refer me to someone else. That's the way it works. Now, as a consultant, that goodwill has just helped me tremendously of helping so many people. And so that's what it's about. That's what it's about. There's like there's no Dunkin Donuts on center uncensored, right? Like there's no like if you were starting another franchise or another business, like you don't have the resources the dentist have available, right? Like think about all the other.
24:15
You know, opening up a med spa, right? And all the abilities, right? You're more on your own. In this industry, you can plug in and figure out a lot or work with somebody like you to walk them through step one, two, three, four, five. That's unique. It's totally unique. The fact that there are so many dental specific professionals in our industry is a blessing for you all. can't.
24:43
Let's let's go uncensored again. Like everybody talks about the dental tax and it's a real thing folks. You guys get charged more for us. Let's just pick on you a little bit. A CPA firm that knows dental like amazing versus a CPA that's literally in a freestanding building that I'm looking at. It says Smith accounting. If you went to Smith accounting, they're going to butcher your tax returns.
25:10
a company like yours is going to be flawless about how they're approaching the whole strategy of tax. Are you paying for more? Absolutely. It's worth that. But what I'm what Justin and I are trying to say is, is sure there is a dental tax, but this is a blessing that there are so many resources that are specific to dentistry. Yeah. You will you will get that money back if you make sure. And I'm not a CPA. Right. But our tax team would make sure.
25:38
your supply costs are in line, your rent costs are in line, like all of those things that are so specific to your niche industry, it's a savings, right? It's just reinvesting in yourself by hiring a good team. And if you just went to, you know, a random, like I said, a Dunkin' Donuts, someone does Dunkin' Donuts tax return, then they try to do a dental tax return. Like they butcher it. Like you'd be losing money. You wouldn't be doing it correctly. Might take a little bit more time, but you know, as well as I do.
26:05
We've got some of the the technology in this industry too about making sure things are aligned. You could look at a tax return very quickly, although you're not accountant and identify the 20 things that are right or wrong with it. And I just think it's about being an expert when it comes down to it. It is it is. All right, guys, let's switch. Let's switch it a little bit. OK, so we've covered letters. We've covered networking.
26:33
Any other really good ideas? I think the other obvious is probably going to events, networking again, networking with fellow dentists. What am I thinking? The study clubs and societies and stuff. What else? What am I missing? Let me let me again. This is uncensored, right? Let me just throw one out there at you, right? So if you're if you're representing a buyer and they come to you and say, hey, I've got a great opportunity. This individual wants me to come on for an associate one or two.
27:03
to years and then buy. What's your mindset there? Like, are you telling that doctor, hey, let's review it, let's talk about it? That's something I think that a lot of doctors don't have transition plans. I was always weary if I rep the buyer of like, how do you know they're gonna sell to you in a year or two? Like, do you enter into that deal to try to find a practice that's off market, right? Or do you just hold tight?
27:29
Maybe that could be another episode. I love where that where you're heading. Let's touch on it quickly because Justin, you're spot on. If you go out and network and you start doing this organically, you're going to run into these conversations. Hey, why don't you associate before we sell to you? That's going to happen. People are going to respond to the letter and you have to be very, very clear about what we're trying to do here. This is a podcast about buying practices, not associating.
27:58
Yeah, yeah. As So my answer is if you're hiring me, you're pretty you're pretty freaking serious about ownership. Yeah. So if you're going to bring me a partnership opportunity or an associate opportunity, I'm going to say, sure, that's cool. You can be an associate, but you're not doing what you're trying to do. You hired me to help you get into ownership. So I'm going to push for an immediate buy in at least 50 50. I'm not going to.
28:28
take anything less than 50-50, I get that all the time. Because what are we doing here? Are you guys sitting on the sideline and being associates the rest of your life? Sure could it work out, you asked, so I'm giving it to you Justin, sure could it work out where you work for someone for two years and you get into an opportunity that you may never have by doing that? I just think there's a lot of risk there, I don't know, that's my
28:54
I agree. And my dad said he was going to retire seven years ago. My mom was like, he's never going to retire. So like, might be told one thing, right? So like that's what, yes. And my whole point around it was don't get caught up in an offer like that. Stay the path and go aggressively, try to find a practice, however it takes, because those deals are historically bad for the associate because you got no leverage. Get back on path with buying a practice. Don't mess around with those. They're just.
29:22
They're bells and whistles at the end of the day, 95 % of the time. This is my opinion. It's the opinion. It's the opinion. Is associating cool and work works for a lot of people? Absolutely. And I'll be the first to tell you that not everybody's cut out for ownership. That's OK. You can be an amazing associate and make a ton of money and not have the responsibility of dealing with team. But but it wasn't until
29:51
I left corporate and started my own thing at next level until I realized what ownership really could create for myself, my family, my situation. I believe in ownership so, so big that this program is all about inspiring people to get into ownership. I remember back in the day when I worked for B of A,
30:16
And there was a statistic that like 50 % of dentists will own their own practice at some point in their lives. It may even been higher than that. Do you remember anything like that? think it was 50 to 60. And I'm telling you the best thing at your work and we talked about trade shows when a doctor comes in and they were nervous about buying, right? They were the ones that were always, you know, texting, calling you like, I don't know, I'm buying this high. It's X amount of purchase price. I'm like, sure. Do I have enough working capital? Is this going to work out?
30:45
Two years later, they're like, oh my gosh, I didn't even have to sweat this thing. This is awesome. Right. And that is the majority of the conversations, right. That you're in there and you're battling and you're talking about all this stuff and all the hard work is on the front end. Right. Find the practice is the hard thing. Getting in there and making the practice work, right, is is the part. Don't say it's the easy thing. It's hard. It's less burdensome. Right. It's a different heart. It's a different.
31:12
You get into the clinical stuff, the stuff you're more comfortable with, not the business side, 100 % of finding the practice. Yeah. And full circle while you need that team that can help you being an owner. All right. So last segment here, we'll wrap this up soon, folks. Hang in there with us. I think it makes a ton of sense to touch on it. And it is, so how do you find a practice? Conversations you're going to get into to avoid.
31:42
do's and don'ts. We've covered all that. Now, let's talk about the pros and cons of having a broker on a deal or not on a deal. And I think this is really important. We could probably talk for an hour on this topic, for sure. Now, you're starting to build a practice brokerage firm inside a really credible and amazing accounting firm. So you're going to be a little biased, but take that hat off, Justin, from when you were a B of A guy and
32:12
buyer exclusive. On the buyer representation side, I love when there isn't a broker involved. However, I hate it also. And the reasons I love it, actually, let me just ask you, why would you love it? I could talk all day. Why would you like a scenario like that? I know the bad, yeah. I would, I guess I would like it.
32:37
the most is when a doctor comes in and you get some of the stuff out of the way the first, there's instant trust. You get the walls are down because when you work with the transition team, you have to go through the transition team. It expedites the process a lot. Like, hey, what are we talking about? Here's the purchase price. If you've got key terms and you've got other parties involved, that's a whole different ballgame than when the seller doesn't have financials together. They don't have an attorney. They don't know what the price is. They don't know.
33:07
that I'm not putting my transition hat, that's the reality. Those are a nightmare. But the ones that are just like, hey, we've agreed to the price, just paper the deal, attorney, get the financing involved. That's a whole different ballgame. Right. And I'm a big believer there's enough business for everybody, whether you're a transition person or doing it on your own, that doesn't matter. Right. There's enough deals out there. But the ones that are that would go the smoothest is when the buyer and seller knew each other, had an attorney, had the key terms worked out.
33:33
than the ones that went the worst or when there was no person representing the seller. Turns weren't worked out. I was being seller broker as the buyer trying to figure out what the price is, what it's worth. I got a quarterback the whole thing and there was a nightmare, but some of them were fantastic. You gotta remember how many things are done without transition teams. I don't know what the number is. It's gotta be. 50. They say it's half. So FizzBos, for sale by owners.
34:03
50 % of the time does not have a broker. Okay, so Justin, you touched on like 100 things right there, it's perfect. Instant trust, instant credibility, check, check, absolutely. I like them as a buyer's rep because usually I can get a better price. Because I know what I'm doing as a buyer's rep. I know how to value, I know how to approach the seller, I can get everybody warm and cozy. It's a lot more massaging, sometimes sellers have this like,
34:31
crazy idea what their practice is, but once they come back down to earth, usually the broker's fee can be somehow worked with for the buyer's favor. So I love that part of it because you got to think there's a broker's fee involved for the seller if the seller has representation and the seller will know that. And so there's a little wiggle room there. But I must say, if you don't have someone helping you to.
35:00
It be train wreck because the deals that I've been on where there wasn't a broker, you said it exactly right. Not organized. Seller usually has no idea what their sale price is. They don't have all the documentation. It is a very, very hard thing to get to the finish line. And that's obviously a con. And that's a topic for another day. But what I've seen your post to where you're.
35:28
shaking hands with other side of the deal. Why is that? Right. And that's again, another podcast, but why, why did that deal to where the parties at both sides are shaking hands and saying good deal, right? Those are, those are fantastic test cases as to why those work or why those don't work. So I think you do a good job though, getting everybody to, to get along. I'm not saying it just cause your podcast, but that's your, your, one of your strengths is getting everybody to be reasonable.
35:55
get from point A to point B to point C and ultimately get to the finish line. So there's no such thing as a lose win. People, I don't know if I'm pretty sure I've said that many, many times on the startup uncensored podcast, but this is even more importantly that there's no such thing as a the seller has to get what they deserve. You have to buy at a reasonable price. It it this is a transition. This isn't we call it. We call them transitions for a reason.
36:25
I mean, the word transition and acquisition are the same, same, but really it's a transition world. We're helping people transition their lives and their business. Acquisition, you're just buying it. You're just buying assets and acquiring and you know, it's very transactional, but you're right, Justin. Like the cons of not having a broker, can really
36:51
be a challenging thing. And as you do this like organic hunt, you're going to fall into be my associate buy in or let's let's go ahead and sell you the practice. And without professionals involved on both sides, nightmare, nightmare. And what are your strategies? If you're if you're the doctor and you're the buyer side rep and you're not you're you're sending out all these things that the transition teams throughout the country.
37:21
and you're not getting a response. You're the young doc. What are you advising them? Are you saying then you go back to what we're just talking about and hit it hard that way? Do you keep pounding on people that aren't responding? Cause you know that happens, right? They'll just say, you know, what do you advise your doctors that come to you and say, look, I've registered, I've Googled, I've signed up for X, nothing's working, Mike, nothing. Is that why we're here today?
37:46
That's when you're going practice broker. You mean like when all things fail? I'm saying when a young doctor comes to you and saying, I've emailed and I've signed up for every transition consultant, every broker in the country, and I'm not getting responses right now. I think that's very common. Like they don't have quality listings. What's on the website is not really accurate.
38:11
I think you're forced to go back into what we started talking about at the podcast a lot of times because of the inventory is so low. I think the doctor starts out by thinking I can just Google and register. This will be an easy process and I can send an alert on my phone like Zillow. So when a house comes up, I'm going to be notified, right? It's like that. That's not like it. There is no MLS. There is people for those that don't know MLS. MLS is a database for all houses being listed. If you're
38:39
a real estate broker and you have a listing, you put it up on the MLS. That's what you do. There is no MLS in the practice broker world. And so you have to have excellent relationships with the practice brokers in your market. That's where we're heading on the next seven episodes. How to get into the good graces of the practice broker. How do you get to the top of the list? How do you make an offer and not insult? All of that we're going to get into. This is
39:07
a dangerous topic of you heading down this path by yourself, but it's 50 % of the time is what happens. So, this has been fun, man. God, I could talk about this stuff all day long. Final comments on this topic of like someone organically trying to do this hunt without too much, without a practice broker, without maybe a buyer. I'll say it again, I've said it for years, practice ownership's awesome.
39:34
That's the way to go. However you got to get there. If you got to grind it out, do some of the stuff we're talking about and take five, 10, 15 hours to write a letter, update your resume or go to a local event or sit down at a seat. Do it. Just do it. Right. It'll be worth it. So get outside, get outside your comfort zone. Even if you're dealing with a deal with someone on the other side and representing seller, just do not give up.
40:01
Stay at it. It is a great industry filled with great people. You will own a practice center then later. We and I can go all day back and forth on startup or acquisition. They're both great models. This one's really good and for a ton of reasons and just don't give up. Yeah, I love that, Justin. Dude, thanks so much for being on the show. I know you're going to be on some future shows here representing your company.
40:27
Well, apparently I'm in the co-host. I want to know who my other co-host competition is. Well, you're out. You didn't pass the test. So that sucks. this was a good one. Thank you. No, no, this was super fun, guys. Just as a reminder, show notes below. If you're watching on YouTube, you can always look at our silly faces talking at each other.
40:53
But all of Justin's contact information is below, just like mine. If you're interested in buying a practice, of course, reach out to me or Justin. I'd be happy to represent you. Justin's firm would be happy to probably sell you a practice or even help you through the process as well from an accounting perspective. But we love what we do. We love what we do. That's the bottom line. We got some big news coming for you, for the, that you know about that I'll be announcing on the
41:21
transition one so stay tuned so big big announcement we got coming. Well hey stay tuned folks and I guess with that signing off thanks Justin for being on the show buddy. Thank you. Tune in next time for another truth-filled episode of Acquisition Uncensored. We want to hear from you. Interact with your host Michael Dinsio. Follow us on Facebook and YouTube. Comment and subscribe.