The art of the deal: making sense of co-ownership
What is it about Dentex’s vision for co-ownership that sets it apart? We take a closer look at the deal structure to find out why it’s worth considering
Dentex isn’t like other dental businesses or corporates. When you join, for example, you don’t sell out; you become a partner. In the same way, it’s not corporate dentistry; it’s co-ownership. These are positive-sounding words, but what do they actually mean?
Thankfully, they are more than just snappy branding. The concept is simple, but unique – and it’s designed from the ground up to create a network of inspired, passionate and committed dental professionals.
How does it work?
There is one fundamental difference to Dentex and it is written into the very heart of the business. As a partnering principal, you’ll take 80% of the value of your practice as an up-front payment, immediately releasing much of the equity in your practice.
The remaining 20% is invested into Dentex shares at group level – in effect, making you one of the owners of the business that you and your practice have just joined, on the same level as all other investors.
Day to day, you will carry on as the clinical lead of the practice. You will take a percentage of the work you carry out, operating as a self-employed associate, and Dentex will treat you as a valued client, not an employee.
But because you’re also a shareholder in the wider business, you benefit from the growth of Dentex as a whole.
Based on the recent market activity, even conservative forecasts suggest that the equity value in Dentex could more than triple in the next five years.* There have been four large dental corporate transactions in the past three years, indicating a strong market for consolidated dental groups, with demand from UK and international investors.
Dentex offers a unique structure for investing in the dental company you work in. Our partners share in the value we create which encourages an all-inclusive, client orientated business.
Business owners profiting as the company grows is nothing new – but because Dentex’s principal dentists are also shareholders, the value created by the business goes back to those who have been involved in it clinically.
Where is the money coming from?
At present, Dentex has approximately £45 million of equity already in the business, almost all cash equity. This is not through loans but a group of investors who have invested in the concept. Dentex’s investors and management team have extensive experience in creating substantial businesses over the long term.
These shares hold the same economic benefits as the ones partnering dentists get when they join the group.
Dentex CEO, Barry Lanesman, explains, ‘We’re creating a business that’s unique. It’s very culture-based, so the ethics of the business are at the heart of what we do. We can keep Dentex independent, unique and different for shareholders that want to keep driving value in dentistry – we don’t have to sell it out. Our aim is to create a long term, independent dental business, for dentists. This is something we ensure our shareholders understand and support.
In just over two years, we have grown to over 50 practices and provided a return to our shareholders of over 35%. Most importantly we have a network of dentists who are committed to the growth of Dentex and what it offers to the industry.
In a dental landscape dominated by corporate buyouts… doesn’t that sound like something that’s genuinely different? Should you wish to find out more, we’re always delighted for an opportunity to discuss how Dentex may suit your needs and we can always introduce you to a Dentex Partner who can share their experience.
* This article offers information about investing, but not personal advice and we would suggest that you obtain independent financial advice. Past performance is not an indicator of future performance and since investments can fluctuate in value, you may get back less than you pay in.
To find out more about partnering with Dentex, please email or visit the website.
Telephone: 0333 305 5631
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