Randy Daigler's invitation is awaiting your response

Randy Daigler would like to connect on LinkedIn. How would you like to respond? Randy Daigler Transition Manager at DBS Professional Practicre Brokers Confirm you know Randy You received an invitation to connect. LinkedIn will use your email address to make suggestions to our members in features like People You May Know. Unsubscribe If you need assistance or have questions, please contact LinkedIn Customer Service. © 2014, LinkedIn Corporation. 2029 Stierlin Ct. Mountain View, CA 94043, USA

Randy Daigler's invitation is awaiting your response

Randy Daigler would like to connect on LinkedIn. How would you like to respond? Randy Daigler Transition Manager at DBS Professional Practicre Brokers Confirm you know Randy You received an invitation to connect. LinkedIn will use your email address to make suggestions to our members in features like People You May Know. Unsubscribe If you need assistance or have questions, please contact LinkedIn Customer Service. © 2014, LinkedIn Corporation. 2029 Stierlin Ct. Mountain View, CA 94043, USA

I'd like to add you to my professional network on LinkedIn

Randy Daigler would like to stay in touch on LinkedIn. Randy Daigler Transition Manager at DBS Professional Practicre Brokers Greater Detroit Area Hi ADS, I'd like to add you to my professional network on LinkedIn. - Randy Confirm that you know Randy Other people you may know on LinkedIn Randy Daigler Transition Manager at DBS Professional Practicre Brokers Stuart M Auerbach, DDS VP at ADS Florida, LLC Greg Auerbach Transitions Specialist at Professional Transitions You received an invitation to connect. LinkedIn will use your email address to make suggestions to our members in features like People You May Know. Unsubscribe This email was intended for ADS BLOG. Learn why we included this. If you need assistance or have questions, please contact LinkedIn Customer Service. © 2014, LinkedIn Corporation. 2029 Stierlin Ct. Mountain View, CA 94043, USA

From Hy's Desk: Forging Onward - Surviving Economically Rough Terrain

2009! This will be a year to remember for very significant reasons. We will enter into a new era politically and socially, but more importantly we will be facing a very difficult economy. The recession that has developed is impacting all sectors of the economy, including dentistry. In some areas, it is a very deep impact, where in others it is less severe. But, it is affecting all of dentistry including the financing sector which supports the acquisition and refinance of dental loans, and also the financing of expansion of practices including new equipment purchases and lines of credit.

One of the major finance companies, General Electric Healthcare Services, a division of GE, as of January 9, 2009, has eliminated its dental acquisition financing department and will no longer be providing dental purchaser or start-up financing. Several years ago GE bought HPSC which was the original dental acquisition and equipment financing company in the country and GE initially proposed a very aggressive entry into the financing market.
The loss of GE is a big blow to our industry as GE was one of the big three or four lenders. Fortunately, GE sold its portfolio to Wells Fargo Bank which owns MATSCO Financial, a very reputable company, with whom we have been working for many years.

As of now, Bank of America, MATSCO Financial and Professional Practice Capital (PPC Loan) are the main players in the market place. There are other broker lenders that acquire their money from various sources, including the Small Business Administration. Hopefully, this economic fall-out will not further reduce dentists’ ability to secure reasonably priced financing.

As we face this critical time, now more than ever before, it is important to get your practice running fiscally responsibly with proper fee structure, cost structure (expenses) and management. As I’ve stated before, dentistry will continue to be needed, but now is the time to “get back to basics” and be pro-active in controlling overhead, including staff expenses, adjusting fees, working on internal marketing for new patients and controlling accounts receivable, especially with the insurance companies. It’s probably a time to
have a “State of the Practice” meeting with your staff and lay out specific plans to assure your profitable survival in economically rough terrain.

We, at ADS Florida, wish you all a very happy and prosperous New Year and remind you that you can call on us for any assistance or advice related to your practice. Our team consists of two formerly practicing dentists one of whom is an attorney and two MBAs. I think we can honestly say we ARE THE BEST, and we are very proud of it.

Hy Smith, MBA
Managing Member
ADS Florida, LLC

From Hy's Desk: Watch & Ward

I recently spent time discussing taxes and concerns with potential tax changes that could occur in 2009. As a supplement to that discussion, I want to alert our clients and dental colleagues of disturbing information that has come to our attention.

Attorney Bill Prescott, a close friend and advisor, chairs the Closely Held Business Committee of the American Bar Association Section of Taxation, a tax forum with the IRS and tax attorneys discussing tax and legal issues that affect the relationship with the small business community and the IRS. Bill’s specialty is tax law and the preparation of dental practice legal documents, partnership and solo group structures and complex practice transition strategies. He is revered as one of the two top tax attorneys in the country for the dental community.

In recent discussions with Bill, he brought to our attention some disturbing developments that may very well impact our dental clients and we felt that it would be appropriate to share some of this information with you.

Hy Smith, MBA
Managing Member
ADS Florida, LLC

From Hy's Desk: Another Adage

We’ve all heard the truism: “The only thing for sure is death and taxes.” Regardless of your political leanings, there, most likely, will be a tax increase next year. The most probable area of increased taxation will be the Capital Gains Tax.

At present the Capital Gains Tax is at 15% which was reduced from 28% during the Reagan administration. If implemented it is likely that the tax will be retro-active to January 1st, 2009. If so, any transaction that occurs after that date will be taxed at the higher rate.

This month’s feature article will give you an indication of how an increase of the Capital Gains Tax may affect the after tax income that a seller might receive when selling a practice. I am currently advising all clients that are considering selling within the next 18 to 24 months to review the potential impact of this change with their CPA or tax advisor, now, for the purposes of planning.


Hy Smith, MBA
Managing Member
ADS Florida, LLC

From Hy's Desk: Economically Speaking

Recently, I have been a “Chicken Little” about the economy. Fortunately the sky is not falling, but it seems the price of oil could be the economy’s back breaker. We’ve been through these times before and have survived, but it takes a good, aggressive approach.

The effect on the consumer’s budget is less disposable income to spend. The effect on the dental community is less elective spending, which affects hygiene checks, bleaching, implants, Invisalign, veneers, etc.

So it’s back to basics. It is estimated that a practice grossing $700,000 per year has over $300,000 worth of diagnosed, uncompleted dentistry in its patient charts. Now is the time to do a chart audit and encourage those patients to complete procedures for diagnosed problems. This may require “verbal skills” training which can come from role playing in office meetings.

The successful dentist will do something positive – develop a good offense.

Hy Smith, MBA
Managing Member
ADS Florida, LLC