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In this episode of the Stress-Free Dentist podcast, Dr. Eric Block welcomes back Elijah Desmond, an experienced entrepreneur and Co- founder of Dental Pitch Brokerage, to discuss how dental practice owners can effectively prepare for and execute the sale of their practices.
Elijah shares his expertise on the critical steps dentists should take to ensure a smooth and profitable transition, emphasizing the importance of planning several years in advance.
The episode focuses on understanding EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization), a key metric for evaluating practice performance. Elijah explains how to improve EBITDA, leading to higher valuations, and also stresses the importance of working with experts, such as specialized brokers or coaches.
Elijah introduces the unique approach of Dental Pitch Brokerage, which presents practices to qualified buyers in a relaxed, engaging environment. This helps establish cultural and personal alignment between buyers and sellers, fostering better long-term partnerships.
This episode is packed with actionable advice; this conversation highlights how proactive planning and expert guidance can help dentists achieve a stress-free and financially rewarding transition.
Episode Timestamps
- 00:00:12 – Introduction to the Stress-Free Dentist podcast
- 00:00:31 – Overview of resources available for dentists
- 00:00:57 – Details on scheduling a complimentary marketing strategy session
- 00:01:24 – Introduction of Elijah Desmond
- 00:02:22 – Elijah’s company, Dental Pitch Brokerage
- 00:04:35 – The importance of EBITDA and how it impacts practice valuation
- 00:05:58 – Why a quality of earnings report is essential for accurate valuations
- 00:06:59 – Traditional methods when working with brokers
- 00:10:59 – Using fun methods to connect buyers and sellers
- 00:17:07 – The official handbook on EBITDA by Matt Ornstein
- 00:17:34 – Example: the higher the EBITDA, the higher the multiple
- 00:18:51 – Negotiations of the earnout value
- 00:23:17 – Importance of earnouts and cutting from your bottom line
- 00:25:47 – What is arbitrage?
- 00:29:48 – About the buyers at Dental Pitch Brokerage
- 00:33:15 – How often Dental Pitch Brokerage hosts events
- 00:37:13 – Tips on how to be successful with your exit strategy
- 00:39:53 – How to get in contact with Elijah Desmond
Resources