Article Review: Bracing for Change: A Turnaround Tale | Axial

By Emily Sackett, Axial | February 10, 2016

History of Dr. Alex Giannini:

• Alex partnered with dental school classmates upon graduation.  There wasn’t enough work to keep dentists busy. He spent more time on marketing and operations. He made as much money working on the business than in the business.
• In 2008, Alex jumped on board with a new venture Dynamic Dental Partners.  By 2014, the company was number 14 on the Inc. 500.  They sold to private equity investors and Alex eventually exited.
• Alex had a lengthy stint as an executive of Heartland Dental Care, the largest DSO in the country today with over 700 offices.
• Alex was brought Blackford Dental in the fall of 2014 as a consultant. Blackford was losing over half a million dollars per month. By January 2015 Blackford was break-even, and by March they were making money.  Same store sales increased over 75% and EBITDA growth has been astronomical.

The Blackford Turnaround:

• When Alex arrived at Blackford there were 21 offices and 19 partners. 
• They were solo dentists who didn’t communicate as a group. Alex installed systems and structural policies to give doctors freedom to focus on their practice. 
• His vision was doctor-led and patient-centered and everyone was on-board.
• Alex's goal is to provide the best technology, equipment, and training to run successful offices. 
• Blackford is a business partner providing back-office support, marketing, compliance, IT, and procurement.
• Doctors spend more time taking care of the patient creating a happy, recurring customer base and a predictable flow of revenue and referrals.

The Dental Industry:

• In the early 2000s, 3% of all dentists were in a group practice and today it’s estimated to be almost 15-18%. By 2030 it is expected to be near 50%.
• To build a great DSO group you need capital and operational experience.
• Blackford expects acquisition to be their primary source of growth.
• Blackford looks for dentists who want to spend more time with patients and less on the administration of running a practice, yet value an entrepreneurial mentality. 

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For additional information regarding Florida business sales, acquisitions and valuations, please contact Eric J. Gall at Eric@EdisonAvenue.com or 239.738.6227. Also, visit our Edison Avenue website at www.EdisonAvenue.com or my personal website at www.BuySellFLbiz.com.