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I Hate to Say I Told You So…

Colin Campbell
by Colin Campbell on 10/12/17 18:00
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A few weeks ago I wrote a blog about rumours and whispers about what is happening to one of the large dental corporates, you can read it here if you want.

I am really lucky because I get contact on a day-to-day basis from people all round the country and in all aspects of dentistry from different places. I was on the phone to one of my friends yesterday who confirmed the downward spiral of the as stated and unnamed organization!!

They’re selling off practices cheap, not just in Torton where it started and not just giving away contracts in Lincolnshire but now all round the country; they’re dropping out the ‘dead wood’.

The reason for this is that they have practices with large UDA contracts (they took as many UDA’s as they could get off everybody else) but no one will work for them now.

These practices start with a dentist racking up enormous claw backs and the shareholders don’t like that very much.

Dentists have realized that they just don’t want to work in a workhouse anymore.

They’re leaving, to work for less money and better practices, or leaving dentistry all together.

Some of our colleagues who came from overseas are returning back home and leaving their claw backs here.

Another nail in the corporate coffin though is one you may not have considered and I only heard about recently.

Many of the guys who sold at the top end of the market 5 or so years ago are coming to the end of their ‘earn out’ periods. These are high grossing talented individuals who built practices up to big levels and were able to sell onto the corporates at big sums.

The corporates are now returning to them and saying “Your earn out is over here is your new contract”, these guys are saying “No!”

They’re playing the corporates at their own game and then saying “How much are you going to pay me to sign back in?”

This will wreck the corporate model because either they have to pay out significant sums of hard cash to lock people in for a year or two or they have to let them go and lose the gross, which is irreplaceable.

If you’re a corporate but not the one that I am talking about here then you might want to look on with interest because it’s coming down the track to you too.

If you have a hankering after owning more dental practices where you would treat people properly, look after staff and do the best for your patients, now might be the time to start getting in!

 

Blog post number: 1488

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Colin Campbell
Written by Colin Campbell
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