By Brian Christensen, CFA, Chief Development Officer
In this special multi-part series, we’re bringing together financial advisors from across the healthcare industry to help educate you on the decisions, challenges, and opportunities that come with growth, transition, and long-term planning.
Every advisor brings a different perspective to the table, and through this series, we hope to give you practical insights that help you better navigate the road ahead.
Many doctors spend years building a successful practice but begin their transition without fully understanding the decisions that impact their long-term outcome.
In this episode of The Advisor’s Table, Brian and Michael sit down with CPA and Partner David Forbess and Financial Planner Zane Harris from Cain Watters & Associates to walk through some of the most common financial mistakes doctors make when facing a DSO deal.
They explore the tradeoff between immediate cash at close and rollover equity, the importance of being intentional with tax planning, and how owners can position themselves for stronger long-term outcomes beyond the transaction itself. They also discuss the emotional side of a transition, including common causes of post-sale regret, and the proactive steps owners can take before a deal to help ensure they achieve with their long-term personal and financial goals.
“The biggest pitfall is the number on the top of the page being your focal point. It’s a number your eyes gravitate to, but what you miss is the structure of the deal and the stipulations behind the number. Those two things are more important than the number itself.”
Key Takeaways for Dental Owners
- Position yourself for the best outcome. Bad financial statements and not maximizing profitability as a business owner before the transaction results in placing yourself in a weak position when entering the market.
- The right balance between cash at close and rollover equity is rarely a one-size-fits-all decision. How you view risk, liquidity, long-term wealth creation, and personal financial goals all play a role in determining what structure makes the most sense for you.
Why this Matters for Dental Owners
A deal isn’t just dollars and cents or numbers on a spreadsheet. This episode of The Advisor’s Table emphasizes why having a trusted team can help not just with your financial goals, but for navigating the personal side of a transition too.
Listen to the Full Episode Here: