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R E C R U I T I N G &R E T E N T I O N S E C R E T SF O R Y O U R P R A C T I C EA S K T H E E X P E R T : I M P A C TO F I N T E R E S T R A T E S &O T H E R U N K N O W N S P R O F I T A B I L I T Y : T H E G O O D , T H E B A D &T H E N E C E S S A R Y T H EF R O M W E S T E R N C A N A D A ' S L E A D I N G D E N T A L B R O K E RM A G A Z I N EI S S U E # 1 2 • J U N E 2 0 2 3

Page 6 - Ask The Expert:Impact of Interest Rates& Other Unknowns Page 9: You Can't HandleThe TruthPage 12: Tips For APositive WorkplaceCulturePage 14: Recruiting &Retention Secrets ForYour PracticePage 19: Profitability:The Good, The Bad & TheNecessaryPage 20: Interest Rates:What Goes Up MustCome Down?Page 22: The 'Big Deal' InA Climate of HigherInterest RatesDear Readers,As spring transitions into hot summer days everyone is, both, ready for abreak and also wondering what in the world is happening with interestrates!Honestly, this is the hot topic right now. Everyone is a little bit nervousabout what will happen with practice transitions (and mortgages andother lending). There is no doubt that these higher interest rates aremaking people behave a little more cautiously, but it is good toremember that today’s rates are the same as they were back in 2001.Truthfully, we all got along just fine with those rates - but it wasspectacular to enjoy those super low rates for awhile. Realistically though, today’s rates have created a correction in themarketplace and have shaken us out of those high multiples. That said,practices continue to be bought and sold, and bought and sold. So, chin up - we’ll guide you through this blip in the map with the samecompassion and attention to detail that you know and expect fromAvail. I’m here to answer your questions anytime.CEO's MessageLooking For Featured Practice Listings?www.AvailDentalAdvice.comTHE DENTAL DESK MAGAZINE  | 2Founder, CEOAvail Dental Exit Advisory ServicesD A R R E N S H A N A H A NCLICK HERE

Taking Care of Business, Taking Care of YouThis got me thinking about thosefamous instructions on theairplane - ‘To start the flow ofoxygen, pull the mask towardsyou. Place it firmly over yournose and mouth, secure theelastic band behind your head,and breathe normally. If you aretravelling with someone whorequires assistance, secure yourmask first, and then help theother person’. WHAT'S UP IN EDMONTON?byYvette Shanahan As I’m putting together our 2nd annual ‘Health and Wellness WinterEscape’ I have been researching ways to improve our event and make iteven more impactful for our attendees. Through this research, Iinevitably wander onto other, so-called, ‘health and wellness’ sites tocheck out their offerings - what they do right and what I believe they canimprove upon. However, I’ve been pretty surprised to find that many‘health and wellness’ conferences / retreats / escapes etc. have little, ifany, actual focus on the attendee’s health and wellness. Mostly, theseconferences seem to have a priority focus on technical presentations(which is the crux of health and wellness for patients) but very littleoffering for the health and wellness of the health care professional.Are you truly putting your oxygen mask onbefore helping someone else?THE BUSINESS OF YOUwww.AvailDentalAdvice.comTHE DENTAL DESK MAGAZINE  | 3Why is it so important to put yourown mask on first? I know this isa well used example, but it sobeautifully illustrates that we, ashealth care professionals andcare givers, simply must prioritizeour own self-care, our ownemotional and mental wellnessas well as our physical wellnessin order to provide the bestpatient care possible.

Register now for this one-of-a-kindevent and watch for more detailsevery month.Invest in your own wellness andself-care. Trust me, you’reworth it. We have a tendency to de-prioritize our personal self care. We mustprioritize wellness and self-care activities, instead of making themthe first things to be scrapped from an overflowing schedule orwhen times get tough.Now, I can’t speak for other conferences / escapes, but I canconfidently say that the focus of our ‘Health and Wellness WinterEscape’ is to put the focus on you, the healthcare provider. While wedo offer a few technical courses, the majority of the content of thisevent is providing wellness and self-care tools and techniques thatyou can easily apply to your daily life. This event aims to re-fill your,potentially, depleted cup and to assist you with creating a plan foryour self-care going forward.It is well-recognized that the complexities and stress of thehealthcare environment can compromise the well-being of theworkforce. Burnout and other mental and physical health concernscan be a direct result of these challenges. It’s clear that wellnesspractices and self-care are vital tools for not only having well-beingtoday but for years to come.So, if you’re considering investing in yourself (and your co-workersor office’s) health and wellness, I encourage you to stronglyconsider attending the ‘Avail Health and Wellness Winter Escape’.Our presenters will include; Dr. Kristin Yont and Dr. Volinder Dhesi(and many more). There will be daily yoga, laughter therapyworkshops, as well as ergonomics and physiotherapy sessions,reflexology instruction, meditation tools, sleep coaching, trust andcommunication workshops, positivity in working with anxiety anddepression workshops, creating passion and positivity in theworkplace seminars, living your authentic life seminars and so muchmore.TAKING CARE OF BUSINESS,TAKING CARE OF YOU CONTINUEDwww.AvailDentalAdvice.comTHE DENTAL DESK MAGAZINE  | 4

Join Us Health and Wellness Conference This event is focused on the Health and Wellness of the doctor his her family and team When Tuesday 20 Feb 2024 Start Saturday 24 Feb 2024 End Where Margaritaville Resort Palm Springs North Indian Canyon Drive 1600 Palm Springs CA 92262 United States Questions Contact Yvette Shanahan Phone 403 701 8780 Email yvette availdentaladvice com Reserve Your Tickets Now OR

Ask The Expert:D E N T A L I N D U S T R Yby Darren ShanahanFounder & CEO of Avail Dental Exit Advisory Services & has been in theindustry for more than 10 years.Impact of Interest Rates & Other Unknownswww.AvailDentalAdvice.comTHE DENTAL DESK MAGAZINE  | 6

Over the last several months we’ve been receiving some questions from the dentalcommunity. Our experience in brokering and appraising hundreds and hundreds ofpractices has made us a natural place for professionals to turn with theirquestions. We realized that several people had the same questions and so wethought this might make a great forum for people to ask their questionsanonymously and receive their answers. Therefore, ‘Ask the Expert’ was created.Please feel free to send us an email with your questions toDarren@AvailDentalAdvice.com.Question: Is there still a ‘big deal’ in a climate ofhigher interest rates?Answer: I find I am answering this question nearly every day and theanswer is, Yes, there is still a big deal. Practice values are not fallingthrough the floor they are actually returning to 2018-2019 levelsbefore they started to jump up for a few years. And, you will stillhave made the profit you earned at 18-25% which is way higher thanyour portfolio. There is still a big deal to be had for your practice.You just need the right person to bring the right group of buyers tobid on your practice giving you options. Call us - we can help.Question: What’s the purpose of having a plan to sellwhen we don’t know what will happen with practicesales?Answer: You know, in times of uncertainty people often ask whythey bother making a plan. The truth is that plans can actually makeyou feel like you have a little more control in uncertain times. Thepurpose of the plan isn’t really so that you can time the market toget the most out of it because you will never know when things willchange up or down, or what will cause that issue. Consider thosewho bought in Fort McMurray before the wild fire, or those who justpurchased and then were flooded out, or those who sold /purchased CANDID COMMENTARY ON PRACTICE VALUATIONASK THE EXPERTThe "COVID Effect" OnYour Practice Value:Call Us To Learn More.In order to prepare for the future,In order to prepare for the future, you must consider the past.you must consider the past. We can help.We can help. 1-866-Go-Avail1-866-Go-Avail ((1-866-462-82451-866-462-8245))THE DENTAL DESK MAGAZINE  | 7

just before the world closed for 2.5 months! You can’t time themarket, but you can plan to make sure you have your ducks in arow to get the best value, best transition and the best tax andfinancial planning in place. We can help you start with yourpractice market valuation so that you can make informeddecisions.Question: I’ve been an associate since I graduated 6years ago. I’m really hoping to buy a practice, but Ifeel like I can’t compete with corporate offers andI’m not sure what financing is available to me. Howdo dentists like me get a shot at ownership?Answer: You certainly aren’t alone with this question, but thegood news is that there is plenty of opportunity out there for youand others. There are still a good number of practices that eitherdon’t fit the corporate model or the owners don’t desire to sell toa corporation! So you just need to understand the marketplaceand how much your bank will allow you to borrow. You need to letyour owner know if you are interested in buying their practice, asyou never know when they might want to sell. You also need toget on the buyers list of several brokers so that you can see asmany practices as possible, so you are ready to move when theyare available. You need a ‘Be Ready’ attitude so that you canmove quickly on something you like when you see it.THE DENTAL DESK MAGAZINE  | 8ASK THE EXPERT CON'T:Question: These days is it easier to builda start-up than to buy an existingpractice?Answer: I can certainly see where theremay be the impression that doing a start-up might be the path of least resistance.However, start-ups are are rarely, if ever,the easy answer. Today, costs are up, sobuilding will cost you more than it did inthe past - but so will interest costs withcurrent practices. However, prices aresettling down due to the rising interestrates so it is balancing out. Buyingexisting cashflow has been, and willalways be, the easier route to ownershipbecause you already have cash to payyour loan payments or to return yourcapital back to you quicker. Start uplocations are hard to find on a good day,but these days with lots of practiceseverywhere, finding a location that willdraw patients away from the practice thatthey are currently in is a tough sell. Astart up means you need to have more ofyour own time and money to put towardsthe operating cost and sustaining yourlifestyle so you need to consider how thatwill look as well. But if you do go for astart up remember to not overspend, beprepared to work 6-7 days a week to getpatients and make sure you have otherincome to balance the householdexpenses.

equipment condition, fancyleaseholds or production type - themain reason is that one practice ismore profitable than the other one. When we encounter a practice thatis underperforming we have twochoices 1) lie to the owner and tellthem that the practice is worthmore than it actually is or, 2) showthe owner why the market practicevalue is lower than they expectedand show them how the situationcan be rectified. This will give theseller the most beneficialinformation to either take what theycan get (if they have to sell at thatmoment) or to take the time toimprove the profitability of theirclinic. Most sellers, althoughdisappointed they didn’t check thisearlier, are grateful for someonetaking the time to tell them thetruth. Sadly, over the years, we havepicked up practices that have beenon the market for some time andthe reason they have remained onthe market so long is that they areovervalued. We, at Avail, will alwaystell you the truth – and we knowyou can handle it. Determining theprofitability and marketability ofyour practice is something youneed to get done every 5 years, andit’s not expensive if you use theright appraiser and the right format.You don’t need a full appraisal ifyou are checking profit levels,doing financial planning and or justchecking to make sure your keymetrics are in place. There aremany different types of appraisals,let us diagnose the situation andrecommend an appraisal that willwork for you and give you thevaluable information you need.ContinuedY O U C A N ' T H A N D L E T H E T R U T H- O R C A N Y O U ?BY DARREN SHANAHANSometimes in life we are presentedwith a situation that is out of ourcontrol - or is it? The truth is hard totake, sometimes, but it is usuallywhat we need to hear otherwise wehave no way of making a soliddecision. If we don’t have all thefacts and information, we areunable to make a good decision. Over the years I have seenthousands of practices and mostare profitable, to some extent, butsome are not for various reasons.Some might have you believe thatprofit doesn’t matter in determiningthe practice value but I would askyou, “If you are buying a stock or abusiness why would you purchaseit without some level of profit?” It’sok. You don’t have to answer that …because I already know the answer.The difference between twopractices, and why one will sell fora much higher price than the other,isn’t just location, hygiene, THE DENTAL DESK MAGAZINE  | 9

The creation of proper appraisals is crucial for determining the value of a dental practice accurately. Here aresome key things we consider when conducting a dental practice appraisal:1. Gather comprehensive financial information: Collect detailed financial data about the practice, includingincome statements, balance sheets, tax returns, and profit and loss statements. This information will provideinsights into the practice's financial performance and help evaluate the value.2. Assess patient and production statistics: Review patient records, treatment production reports, andscheduling data to understand the practice's patient base, case mix, and productivity. This information canhelp evaluate the potential for future revenue generation.3. Analyze market and industry trends: We know the local dental market and continually analyze industrytrends to understand how the practice performs compared to others in the area. Factors to consider includedemographics, competition, reimbursement rates, and demand for dental services.4. We evaluate tangible and intangible assets: Assess the value of physical assets such as equipment,technology, and real estate (if owned). Additionally, consider intangible assets such as the practice'sreputation, brand, patient loyalty, and goodwill.5. We Consider legal and regulatory factors: Evaluate any legal or regulatory factors that may impact thevalue of the practice, such as compliance with healthcare regulations, licensing requirements, and anypending legal issues.6. We are professional, bank-approved, practice appraisers and we have the knowledge and experience toconduct a thorough appraisal, considering all relevant factors and using appropriate valuation methodologies.7. We will compile the appraisal report that summarizes the findings, methodologies used, and the finalestimated value of the dental practice. This report will serve as a valuable reference for potential buyers,financial institutions, or other interested parties.'YOU CAN'T HANDLE THE TRUTH- OR CAN YOU? CONTINUEDTHE DENTAL DESK MAGAZINE  | 10www.AvailDentalAdvice.com

Remember that dental practice appraisals should be conducted periodically to account for changesin the market, practice performance, and other relevant factors. Additionally, it's essential tomaintain confidentiality and ensure compliance with applicable laws and regulations throughout theappraisal process. This will give you the relevant information to take to your accountant and find outwhat your ‘after tax’ situation is and then you can take that information to your financial planner tomake sure it will meet your future financial goals.Call Avail Today!'YOU CAN'T HANDLE THE TRUTH- OR CAN YOU? CONTINUEDIf you'd like to discuss your practice, give us a confidential call! 1-866-Go-Avail (1-866-462-8245)

concerns. Encourage two-waycommunication and actively listento feedback. This fosters a senseof trust and transparency, whichhelps to build strong relationshipsbetween team members andmanagement.3. Provide opportunities for growthand development: Offer trainingand development programs thatenable employees to enhance theirskills and knowledge. This not onlybenefits the individual employeebut also improves the overallquality of service provided by yourpractice Continued on next page. T I P S F O R A P O S I T I V E W O R K P L A C E C U L T U R EBY SMILE & CO.A positive workplace culture isessential for any business,including the dental industry. Ascompetition for top talentcontinues to increase, creating apositive workplace culture andfostering that team morale can setyour dental practice apart from therest. In this article, we’ll discuss theimportance of a positive workplaceculture to attract talented dentalprofessionals and provide tips onhow to create one. Importance of a positive workplaceculture: A positive workplace culture hasnumerous benefits for both dentalprofessionals and clinics. It fostersa sense of belonging, improvesemployee morale and reducesturnover rates. When employeesfeel valued and supported, they aremore engaged, productive and motivated to provide high-qualityservice to patients. In turn, patientsare more likely to recommend yourpractice to others, leading toincreased revenue and growthopportunities.Tips for creating a positiveworkplace culture: 1. Define and communicate yourcore values: Identify the corevalues that define your practice andcommunicate them clearly to yourprofessionals. Make sure everyoneunderstands how their work alignswith these values and why they areimportant. This helps to create ashared sense of purpose anddirection.2. Encourage open communication:Create an environment whereemployees feel comfortablesharing their thoughts, ideas, and

4. Recognize and reward good performance: Recognize andreward employees for their hard work and achievements. Thiscan be in the form of verbal praise, bonuses, or otherincentives. This helps to reinforce positive behaviors andcreates a culture of excellence. 5. Foster a work-life balance: Encourage employees to takebreaks and prioritize their mental and physical health. Thishelps to reduce stress and burnout, leading to improvedemployee well-being and job satisfaction.In today's competitive job market, creating a positiveworkplace culture is crucial for attracting top talent in thedental industry. By defining and communicating your corevalues, providing opportunities for growth and development,recognizing and rewarding good performance and fostering awork-life balance, you can create a workplace culture thatattracts and retains the top dental professionals. This will notonly benefit your practice but also improve the quality of careprovided to your patients.TIPS FOR A POSITIVE WORKPLACE CULTURECONTINUEDTHE DENTAL DESK MAGAZINE  | 13www.AvailDentalAdvice.com

Celebrate wins as a team anddon’t be cheap about it. Do thingspeople will appreciate. Show Recognition andappreciation. Handwritten notes have moreimpact on a team memberthan any other gesture. Showing mutual respect. Greeting with a good morningand a thank you at the end ofthe day. Foster an environment foropportunities and growth. Foster a positive workenvironment. Be a supportive leader. Flexibility. The days of takingtime off when you are away isno longer. People will walkout. Allow them to have someflexibility and balance withtheir own life. Continued on next page.R E C R U I T I N G & R E T E N T I O N S E C R E T S F O R Y O U R P R A C T I C EBY STRATEGIXHire SMART people as it is toohard to train an idiot. Smartpeople can learn anything. Hire HAPPY people as youdon’t have time to fix theproblems everything else intheir life has created. Hire for a CULTURE fit. Everyteam has a culture, and youneed to learn what it ‘actually’is and what you want it to be.Misalignment with personalvalues will increase turn over. Having the best team starts withrecruiting the best individuals. Thekey success factors Strategixemploys when recruiting forpractices just like yours includes: Once you have your team in place,turn them into a loyal team excitedto service your patients. StrategixLeadership training includes thebelow team-based focuses: The leadership required tobuild a team cannot becaptured in a short newsletter,but the one undeniable elementis the importance of everyonesharing a common GOAL. Fire Quickly. Yup, that seemslike a negative but once youhave given someone all thesupport and encouragement tobe successful and know it isnot working out ... the rest ofyour staff will genuinelyappreciate and respondpositively to the change.OrthoBite: Always say goodbyewith nothing but dignity andrespect. Everyone is watching. “Nothing will ruin a goodemployee faster than watchingyou tolerate a bad one. Addressall performance issues astimely as possible”. RMW www.AvailDentalAdvice.com

We are in a profession experiencing staff shortages. Not sure where everyone went in the past three years, not tomention the entitlement that comes along with the candidates looking for a position. The past few years, ourconsulting business has been dealing with the dynamics of employing a new generation of team members whichis a challenge. An entire division in our company was built (Strategix Recruiting) https://www.strategix-ltd.com/programs/strategix-recruiting to help offices like yours. We need to accept this change and manageexpectations. Understanding how you as leaders can inspire them to generate the results for the business to be successful iskey! RECRUITING & RETENTION SECRETS FOR YOUR PRACTICECONTINUED

Darren Shanahan,Darren Shanahan,CEO & FounderCEO & FounderCorinne MarkCorinne MarkLéoLéo MorrisonMorrisonAngiAngiMcGarryMcGarryMEET THE TEAM AT AVAIL:Western Canada's Leading Dental BrokerJessie McCrackenAndrewJonesSaraSaraTrennTrennComing Soon!Coming Soon!LoriLori WilliamWilliam National Ortho RepNational Ortho Rep1-866-Go-Avail (1-866-462-8245) AvailDentalAdvice.com

OUR FEATURED LISTINGS*Client-approved promotional information.New Listing Edmonton SW Practice Ref#1742 97 Dental is situated at 12914 97 St NW, Edmonton, ABLocation: Edmonton (Northwest), Retail Strip-mall, Street levelOps: 3· Gross production: $372,193· Retail strip mall location, excellent visibility of major high traffic roadway· All equipment and leaseholds in “new shape”· Value: $410,492· Hygiene production: 15%· Digital charts and Intra oral X-ray/Pan· Lease of the premises is in effect until 2025 with two (2) five-year renewal options.· Note: Dental office was built in September 2020 by My Dental group and they operated from thefacility for a few months. Later this facility was run a few days a week by associates.· A general dental procedures office that includes Restoration, Crown and bridges, Hygiene,extractions, surgical extractions, night guards, complete and partial removable dentures, Root Canals andperiodontic cases.· Facility square ft: 995 square ft. A functional dental facility with Three (3) operatories, Sterilizationarea, PAN and Intra-oral X-ray area, Patient waiting area, Front desk area, Kitchen area, Dentist room andone (1) washroom. A WARM Start-Up Dental office that started in April 2022 in a brand-new built facility, with no patientcharts. Has been growing consistently month by month with new patients. This clinic is currently run as aremote/satellite dental office by the current owner dentist. Dr. Madan started this office in the first weekof April 2022. Owner dentist works 2-3 half days in this facility as he is busy with another dental office. Afull-time receptionist and a part time Registered Dental assistant 2 are the current dental staff.As the owner dentist is getting very busy with another dental office and cannot spend enough time for 97Dental, he would like to pass over the facility to another potential buyer. Low investment fully built up andoperational dental facility with a potential to grow exponentially if more time is spent.Asking Price: $380,000 by Darren Shanahan

OUR CURRENT LISTINGS by Darren ShanahanGeneral Plus Real EstateRural West of Edmonton(Ref #1717)$1,794,829$799,148General PracticeRural East of Edmonton(Ref #1712)Gross Income:Clinic Type:THE DENTAL DESK MAGAZINE  | 16#of Ops:77QUESTIONS ABOUT LISTINGS?Call/Text Darren Founder & OwnerCell: 403.862.7406Contact Darren Shanahan for further details on all of our current listings.$1,069,208 + Real Estate$2,412,864Listing Price:www.AvailDentalAdvice.comGeneral PracticeSaskatchewan Rural(Ref #1392)8$1,250,000$1,300,000Gross Income:

treatments or overcharging patientswould be considered unethicalbehavior - which as we all know,where there is profit there will bepeople or companies who put thisat the forefront. We don’t see ahigh volume of this in our industrythankfully.Dental professionals are bound bycodes of ethics and professionalstandards that guide theirpractices. These codes emphasizethe importance of maintainingpatient trust, providing quality care,and acting in the best interest ofpatients. If you have this right andwatch your bottom line you canhave your cake and eat it too!Overall, profit in dentistry is notinherently bad. It is a necessarycomponent for the financialviability and sustainability of dentalpractices. However, it must bepursued in a manner that upholdsethical standards and prioritizesthe well-being of patients.P R O F I T A B I L I T Y - T H E G O O D , T H E B A D , A N D T H E N E C E S S A R YBY DARREN SHANAHANWhy is it that most peopleassociate profitability with bothsuccess and unscrupulousbehaviour? Why do people believethat businesses which enjoy highlevels of profitability must be doingsomething evil or bad in order tomake those profits? You know thefunny thing is that dental practicestend to enjoy decent profitabilityand there is no bad or poorbehaviour associated with it.The recent pandemic has shone alight on an age old issue. Dentalpractices have, in the past,succeeded in spite of themselvesdue to the average profit levels andincome they generate. But whathappens when we have higher costof staff and supplies etc. I will tellyou that good practices pivot andadjust to their situation, and theones that aren’t doing this willwatch their value decline with theirprofit.Profit in dentistry, like in any otherindustry, is not a bad thing, not anevil thing. Profitability is an essential aspectof running a successful dentalpractice and can contribute to itssustainability, growth, and ability toprovide quality care to patients.Profit allows dental practices tocover expenses, invest inequipment and technology,compensate staff and provideongoing education and training.However, it's important to note thatthe pursuit of profit should bebalanced with ethicalconsiderations and the well-beingof patients. Dentistry is aprofession that prioritizes patientcare and oral health. Whilegenerating profit is necessary for adental practice to thrive, it shouldnot compromise the ethicalstandards and responsibilities ofdental professionals.There can be ethical concerns ifprofit is prioritized at the expenseof patient well-being or by engagingin unethical practices. For example,recommending unnecessary

financing for various purposes,such as acquiring a practice orequipment, expanding the practice,or covering operational expenses.Higher interest rates mean higherborrowing costs, which can putfinancial strain on dental practicesand impact their market value.2. Reduced profitability: Risinginterest rates can also have anindirect effect on the profitability ofdental practices. Higher borrowingcosts can squeeze profit margins,particularly if the practice hasexisting loans with variable interestrates. This might not affect thevalue directly, as with Dentalpractices we add the debt back, butit will affect the buyers ability to getthe loan and pay it back at today’sinterest rates.Continued on next page.I N T E R E S T R A T E S : W H A T G O E S U P M U S T C O M E D O W N ?BY DARREN SHANAHANThe phrase "what goes up mustcome down" is a commonexpression that highlights theconcept of gravity and the naturalorder of things. It means thatanything that rises or ascendseventually falls or descends. Thisprinciple can be applied in variouscontexts, both literal andmetaphorical.In the literal sense, objects throwninto the air, such as a ball, willeventually return to the ground dueto the force of gravity. Similarly,anything propelled upward, like arocket, will eventually descendback to Earth.Metaphorically, the phrasesuggests that success or goodfortune is often followed by adecline or setback. It reminds usthat life is full of ups and downs,and no state of being, whetherpositive or negative, is permanent.It encourages us to be prepared forthe inevitable fluctuations andchanges that occur in variousaspects of life.In this case we are talking aboutpractice values, not their moralvalues but their market value. Weare seeing a decline across theboard over the last 12 months dueto interest rates being as high asthey were back in 2001. I know thismight seem like a lot but prices arenot dropping through the floor andpractices don’t need to be at firesale prices. However, prices doneed to settle down to come in linewith the buyers ability to afford thepayments. Banks have beenstretching ‘interest only’ periodsand amortization periods toaccommodate the hot market overthe last few years. This was fueledby a lack of practices available, dueto an abundance of buyers, andpressure from corporations topurchase practices. Let’s look atthis from a practice standpoint.1. Cost of borrowing: When interestrates increase, borrowing becomesmore expensive. Dental practicesoften rely on loans or

INTEREST RATES: WHAT GOES UP MUST COME DOWN?CONTINUEDIt's important to note that the relationship between interest rates and market value is complex and can beinfluenced by other factors such as overall economic conditions, supply and demand dynamics, and the specificcharacteristics of the dental market in a particular region.If you're facing concerns related to declining market value in dental practices due to interest rate hikes, it'sadvisable to consult with financial and industry experts who can provide more tailored advice and insights based onthe specific circumstances.It is important to understand that this is affecting different parts of the market at different rates. Practices doingover 3M in gross sales/year might still get higher premiums because their buyer might not need financing. Call us and we can explain the current landscape and help you to understand where your practicecurrently sits in the market.If you'd like to discuss your practice, give us a confidential call! 1-866-Go-Avail (1-866-462-8245)

sugarplums. There was definitelywork to these transitions but theimpression was that Santa Clauswas sliding down the chimney ofevery owners clinic.Conversely, those who were lookingto purchase a clinic were taskedwith finding ways to keep the magicof Santa Claus alive, through bigmultiples, taking on debt loads andpeople management, creating easytransitions and maintaining highlevels of patient care. Santa Claussurely existed as one party’s hardwork lent magic to another party’sdreams.I assure you that Santa Claus existstoday too, as one party’s hard workwill lend magic to another party’sdream. However, what has tochange to keep the magic alive? It’sthe dream? The dream of enormousmultiples and big corporate pay-outs. Continued on next page.T H E ' B I G D E A L ' I N A C L I M A T E O F H I G H E R I N T E R E S T R A T E SBY YVETTE SHANAHANYou might be familiar with the storyof a little girl, named Virginia, whosent her question ‘Is there a SantaClaus’ to the New York Sun morethan 100 years ago? The answer tolittle Virginia O’Hanlon’s questionbecame the famous foundation forexplaining things which may appearas somewhat ‘unexplainable’.Francis B. Church explained; ‘Yes,Virginia, there isSanta Claus. Heexists as certainly as love andgenerosity and devotion exist, andyou know that they abound and giveyour life its highest beauty and joy.Alas! How dreary would be theworld if there were no Santa Claus’.Yes, I know it’s June and Yes, Iknow this magazine and thesearticles are written for adult dentalprofessionals. Doctors and ownersand buyers faced with strugglesand fears and real world problemsof 2023. But consider, for amoment, the parallels between littleVirginia’s question (loaded withboth faith and fear) coupled withthe compassionate and insightful answer from Mr. Church (careful tobalance faith and reality andkeeping joy alive) - with the dentalownership landscape today. New buyers and new doctors areboth faithful and fearful that theywill ever get to realize their dreamof ownership. Owners looking toretire are both faith-filled andfearful that this investment theyhave worked so hard for, may nowfail to pay-off all due to problematicinflation and rising interest ratesmeant to combat inflation.But, much like Mr. Church’scompassionate response to littleVirginia O’Hanlon, I will attempt toput your mind at ease with anhonest and realistic look at thissituation. Not so long ago, owners enjoyed atime when it seemed like SantaClaus was everywhere. Stories ofhuge multiples, big corporate pay-outs and easy transition danced intheir heads like visions of

THE 'BIG DEAL' IN A CLIMATE OF HIGHER INTEREST RATESCONTINUEDYou see, as little Virginia grew up and the world changed around her, she began to understand the magic ofSanta Claus. She began to understand that both hard-work and faith, compromise and understanding -these were the two-sides of the Santa Claus coin. It didn’t mean that there were no presents under the tree,it merely meant that, sometimes, those presents weren’t the enormous, elaborate presents but they werejust as important and just as precious. It didn’t mean that there were several years where Santa didn’t visit,just so that he could bring one enormous gift. It meant adjusting the vision of sugarplums dancing in headsto a - more reflective of the times - vision of sugarplums.This is what is happening today in the dental world. It doesn’t mean we’re waiting years for transitions, sothat we can get enormous multiples and huge corporate pay-outs. It means we adjust our vision ofmultiples to reflect the current climate and we understand that corporate deals are no longer those hugepay-outs. But, it does mean that two parties are still working hard to lend magic to dreams. So, don’t feel discouraged by the transition landscape today. I assure you that, ‘Yes, Virginia, there IS aSanta Claus’.THE DENTAL DESK MAGAZINE  | 23QUESTIONS?Call/Text Darren Founder & OwnerCell: 403.862.7406www.AvailDentalAdvice.com

Your practice isunique. So are our business solutions.Your practice is more than your career — it’s your life’s work. That’s why MNP is committed to delivering customized solutions to help you manage your practice from start-up to succession, empowering you to meet your career and personal goals.Hall Murdoch, CPA, CA, Partner, Professionals Services403.536.5595 | hall.murdoch@mnp.caMNP.ca

YOUR TRUSTED INDUSTRY PARTNERDid you know that for over 2 decades, our Founder, Darren Shanahan, hasbeen in the dental industry as the "go-to" for other industry professionalsand leaders? Every phone call that comes into our office is about a dental or healthcareclinic. We don't work in any other industry.We provide owners with a "firewall" to protect them from all of the pitfallswe know are out there throughout a transaction because we know how toprepare the deal and navigate the waters. We're here for you.Meet Our TeamDarren ShanahanCEO & FounderYvette ShanahanCo-FounderLogan ReynoldsTransaction SpecialistJennifer LarocqueTransaction ManagerMorgan MinkusTransaction SpecialistQuestions?Call 1-866-Go-Avail (1-866-462-8245) orvisit: AvailDentalAdvice.com

THE DENTAL DESK MAGAZINEB Y A V A I L D E N T A L E X I T A D V I S O R Y S E R V I C E SThe Dental Desk Magazine runs on a monthly basis to keepstakeholders in the dental industry in the loop.Avail Dental Exit Advisory ServicesProudly Serving Western Canada (Alberta,B.C. & Saskatchewan)1-866-Go-Avail (1-866-462-8245)www.AvailDentalAdvice.comSummer 2023 Come back for Issue #13 which will reveal industryinsights, predictions and trends for the Summer.