Home / Uncategorized / Everything Dental Blog April 2015 (3 Part series)

Everything Dental Blog April 2015 (3 Part series)

Terms That Are Vital To Your Financial Health

(1st in a 3 part series) In this issue: EBIDTA, Smart Equipment, Predictable Intelligence and Sleep Medicine

EBITDA – A financial formula that you should be familiar with, especially if you are a 50+ year old dentist in private practice. Bankers, business analysts, practice brokers and the financial community use a number of metrics to determine the profitability or liquidity of a company. EBITDA is a precursor to transitional negotiations. EBITDA = earnings before interest, taxes, depreciation and amortization. For a better understanding of EBITDA consult a transition expert like Tom Snyder or Maria Melone. They are two professionals that I trust and that will provide first rate honest information and the best transition services available in dentistry.


Thomas L. Snyder, DMD, MBA – Director Transition Services




“We use EBITA as a crucial calculation in one of the three valuation methods that we apply when we appraise a dental practice. When you are ready to sell your dental practice your practice’s financial strength is a critical factor influencing the Market Value of your dental practice. Determining the distributable cash flow that your practice will be able to generate into the future is an extremely important metric that EBITA provides”


Maria G. Melone, MORR Dental Solutions, LLC – Partner mmelone@morrds.com; www.morrds.com

“In the mergers & acquisitions world, most professionals reference the sales price of a business as a multiple of EBITDA. EBITDA is a measure of the cash flow of a business, before consideration of investment or financing needs, and tax requirements. The term is becoming more commonplace in the dental industry as a result of the influx of professional investors, including private equity firms, interest in investing in the industry.”

We are at a unique moment of time; a consolidating manufacturing sector, a movement towards group dentistry (less practice owners) and an aging doctor population. Better than half of the practicing male doctors are 55+ years young. We expect to see a record number of transitions over the next decade.


Smart Dental Equipment


Think your phone is a powerful device? Check out some of the new operatory equipment we are selling and servicing today. Your smart phone is your camera, stereo, GPS, phone book, web browser, clock, calendar, photo album, a miniature computer and so much more. Your equipment just got smarter and is packed with tons of features as well!

Your new equipment is going to change how you work and will provide you and your patients with many amenities. Patients will welcome the benefits from heated, massaging seats, ergonomically designed dental chairs and plush upholstery. Both, patient and dentist will benefit from built in operative and therapeutic devices within arm’s reach.

The digitization of your dental equipment will enhance the patient experience and will streamline business operations. It will improve planning, performance, production, scheduling and oversight.

The key is more production, less down time and a steady work flow. Smart equipment will allow dentists to operate more efficiently. In addition to digitizing the ops, many of the popular devices [Scaler, Curing light, Handpieces, air dryer, soft tissue laser, impression scanner and intra-oral camera] will sit on your dental unit and they’ll be integrated! This equates to better, faster and patient centric dentistry.

Repairs will be done remotely as most issues will be corrected by a software upgrade or new electronic component/module. In the future equipment service technicians will rely on highly sophisticated diagnostic tools to repair your smart equipment. They will plug into your equipment and identify what is wrong much like a car dealer does today with sophisticated diagnostic equipment!

Predictable Intelligencedata mining is so effective today that much of the risk and decision making that sophisticated business people make are based on statistical and analytical data. This statistical data comes from a complex web of historical and real time analysis (buying patterns and other indicators). When that information is uploaded into complex, computational software it can yield predictable and highly accurate outcomes. While not perfect, the advantages of this type of forecasting has reduced risk, improves decision making, enhances sales efforts and target marketing.

Dentists and small business people should learn the tools in their practice management software to help them mine their data. They should also work with professional marketing people to develop campaigns that work and increase new patient numbers and branding efforts. Web traffic is a result of purposeful positioning and marketing.

Sleep Medicine is a medical and dental specialty devoted to the diagnosis and therapy of sleep disturbances and disorders. In the early 1970’s sleep clinics emerged on the scene as concerned physicians were seeking a solution to Obstructive Sleep Apnea (O.S.A.). By the mid 1990’s, several media stories about automobile and truck accidents caused by sleep deprivation or driver fatigue brought this issue front and center. Some believe sleep deprivation and fatigue may have had a hand in accidents like the Exxon Valdez oil spill and the nuclear incident at Chernobyl. Lack of sleep affects concentration, temperament and effectiveness at work. Today, many dentists are getting trained on Sleep Medicine and thousands are already treating patients for mild to moderate sleep disorders and snoring with a customized oral appliance.

Spring is in the air! Historically, March thru June is our best months!

Check Also

Everything Dental Blog April 2017

Everything Dental Blog April 2017 What’s your next move? The landscape is changing and the ...