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I N A C C U R A T EV A L U A T I O N ST H E S K Y I S F A L L I N GT H EF R O M W E S T E R N C A N A D A ' SL 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 4 • S E P T E M B E R 2 0 2 3C O N F E R E N C E S E A S O NHigher Interest Rates& Lower MultiplesHow To Make The Most Out Of ItCreate Big Dreams &Even Bigger ProblemsL I S T I N G S O N P A G E 1 4

Page 4 - Ask The Expert:Setting Your Practice UpFor Success Page 8 - ConferenceSeason: How To MakeThe Most Out Of ItPage 15 - The Sky IsFalling: Higher InterestRates & Lower MultiplesPage 18: InaccurateValuations Create BigDreams & Even BiggerProblemsPage 21: Laughter Is TheBest MedicineDear Readers,It’s hard to believe that we are barreling towards the Autumn Equinoxwhen it feels like summer just arrived! Maybe that’s the sign of a goodsummer, the speed at which it flies by.I hope everyone had a wonderful summer and is entering autumn feelingrefreshed, content and invigorated.Summer was definitely not a slowdown in our industry! We are busilypreparing another 6 listings to come on in the next couple of weeks. Wecurrently have 15 listings in various stages and our production team isworking diligently on our more than 40 appraisals at this time. While wehad noticed a slight slowdown back in the spring, we can definitely seethings picking up at a rapid pace.Interest rates continue to create ripples, however, the latest ‘stay’ of ratewas a welcome change. That said, it’s looking more and more likeanother rate hike may come to be in the near future.September is always a busy conference month and I am so excited toget out there and see everyone at the Shine Golf Tournament, TheNWDE, and The SOHC! Be sure to drop by our booth and say hi!Happy September everyone!CEO's MessageLooking ForFeatured 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 HEREP.S. Don’t forget to register for the Health and Wellness Winter Escape For TheDental Professional’s Mind, Body and Practice! Registrations are rapidly coming inand I don’t want you to miss out on this great opportunity!

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 VIEW SPEAKER INFO HERE

Ask The Expert:D E N T A L I N D U S T R Yby Darren ShanahanFounder & CEO of Avail Dental ExitAdvisory Services & has been in theindustry for more than 10 years.Setting Your Practice Up For Successwww.AvailDentalAdvice.comTHE DENTAL DESK MAGAZINE  | 4

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: I was looking at an appraisal that hadassociate wages removed. My banker told me thathaving associate wages removed makes the appraisalinaccurate and I could potentially be overpaying. Doesit really make a difference if associate wages aren’tincluded in a valuation?Answer: Each appraiser has their own methodology, but at the coreof a business valuation you need to understand the net income, asthat determines how profitable the clinic is after ALL expenses - andthat includes Associate wages. If your appraisal doesn’t have all ofthe standard calculations included, you and /or one of your advisorswill have to do those calculations to understand if that clinic is A)Profitable, B) Profitable enough to support the debt payments, andC) Worth what they are asking for it based on normal years to payback or appropriate Cap Rates. If you need a second opinion on theappraisal you have, feel free to call.CANDID COMMENTARY ON PRACTICE VALUATIONASK THE EXPERTNeed some personalized,confidential advice?Book A Call With Darren.Book A Call With Darren.We can help.We can help.CallWithAVAIL.comCallWithAVAIL.com

Question: Does the structure of my practice impactthe sale of my practice?Answer: The short answer is “Yes it does,” especially if you aredoing a partial sale. If you have a cost-share it can dramaticallyimpact the value the buyer gets from “buying” into your practice.The buyer needs to understand how they will be profiting from theclinic and make sure the assets are able to be taken as collateralfrom the bank. If you have a partnership, cost-share, or hybrid ofone of these structures, you will need to asses this at least 5years out from the sale of your part or the entirety of yourpractice. For a buy-in scenario, you will need at least that samelength of time to contemplate how that partial sale would bepossible and how you go about protecting your asset.THE DENTAL DESK MAGAZINE  | 6ASK THE EXPERT CON'T:Question: I’ve heard that it’s more challenging to make a good living as an owner/doctorin rural markets than in urban centres. In your experience have you seen a disparitybetween rural and urban clinics?Answer: Honestly, No. The big difference between rural and urban clinics is the overhead. On one hand, you maypay more rent in the urban clinic but on the other hand, it may cost more money to attract staff to a rural clinic.At the end of the day, it really comes down to how well you manage your overhead. If you do it properly, they canboth be profitable. In fact, some rural practices are more profitable than urban practices. Truthfully what youneed to consider is a lifestyle choice, and while profitability is vitally important, the more important question youmay have to ask yourself is whether rural living or urban living will fit your lifestyle goals better.Avail Dental’s CEO, Darren Shanahan, at the ShineDentistry Charity Golf Tournament in Edmonton, AB Sept. 16, 2023.

Question: The Dental Desk usually has an article about self-care or stressmanagement etc. I was just wondering what kind of things you do, personally, toaddress your own self-care and stress management.Answer: Wow! Great question and well done for challenging me to be authentic in the material we present.For self-care, I do make sure to shut my phone off after 8pm (most nights). I try to soak in my hot tub 2 or 3times a week, I go to bed at a consistent time and I listen to meditations before going to sleep. For stress-management and physical health I play recreational hockey once a week, I curl once a week and I walk withmy wife almost every night. My wife and I practice clear communication on our walks and it seems to help usboth when we bounce ideas and struggles off of one another and help each other to find the solutions. Itmight sound cheesy but my wife is truly my best friend and we make each other laugh - a lot. Together, mywife and I try to practice gratitude each and every day. Having said all of that, sometimes creating time tokeep up with self-care and stress management gets deprioritized and I don’t always succeed with it. It reallyis a practice and when I fail, I have to remind myself to let it go and keep trying. THE DENTAL DESK MAGAZINE  | 7ASK THE EXPERT CON'T:Interested In 2024 The Health & Wellness Winter Escape?Reserve Your Tickets Now!OR

C O N F E R E N C E S E A S O N :H O W T O M A K E T H E M O S T O F I T !BY YVETTE SHANAHANAutumn is (almost) officially here and back to school is in full swing! It’s also the beginning of “conference season,”when loads of conferences pop up, attracting professionals from all over this beautiful country and beyond. Thequestion is: are they worth it—especially for busy professionals and leaders? Personally, I feel the answer is aresounding, YES!Most of us feel that time is our most precious resource and spending some of that precious time at a conference canfeel like a waste of time. However, there is something to be gained for everyone who attends a conference, whether it'slearning the latest skills in your field, gaining a new understanding of business operations as it relates to your clinic, ormaking new connections with fellow business owners, team members or supporting professions. It’s important to bebuilding these types of relationships far earlier than when you may need them—and conferences are a great place todo that. So what can be done to make the most of our precious time when attending conferences? We recommend findingways to optimize your time, prioritize social activities where you can make connections in a more relaxed setting andwork to make a positive memorable impression on fellow attendees and vendors.Optimize Your TimeEfficiency is key when attending a conference where you only have as few as 24 hours, or potentially 2 or 3 days to fiteverything in. Study the list of speakers, vendors and potential attendees (in advance on the conference website). Ifyou hope to have some one-on-one time with particular people, contact them well before the conference and set up atime to speak one-on-one. This prevents anyone from feeling ambushed during the conference or embarrassed if theycannot give you that time. If you’re uncomfortable setting up formal meeting times try reaching out and offering toexchange cell numbers so you can text to meet up once you’re on site. These brief in-person meetings will help you tobuild more personal connections, especially given the fact that we are still returning to in-person events after a longperiod of Zoom connections!THE DENTAL DESK MAGAZINE  | 8

CONFERENCE SEASON CONTINUED Prioritize Social Activities Consider using your meals and drinks strategically Meals are usually a more private relaxed and quiet time to get one onone time with an important person Drinks in the lounge or casino show times are opportunities to causally socialize with people or groups that you wish to make initial contact with The actual content of the conference is important but opportunities to make a connection and get your foot in the door to what may develop into a wonderful work relationship are arguably the higher purpose of in person conferences Make An Impression Something that attendees potentially don t think about is the advantage of using social media during conference season Think about posting to X twitter and or instagram and or Linked In and or a facebook live a session always using the conference hashtags Don t forget to tag the people involved in the conference attendees vendors speakers and coordinators Like it or not socials are the universal language of every activity and business now Use it to your advantage gain followers build your profile and stay connected with those you met at the conference It also creates a little FOMO fear of missing out among those who aren t attending the conference and gives a peek into what is going on at the event Using social media to your advantage means that you control the narrative and the image you project but remember to be positive in that image and to be true to that image in all of your interactions No one wants a meme made from a glimpse into a real image or worse a temporary lapse in judgment Conferences can be one of the few times you can connect with the great minds the movers and shakers in your industry Your attendance can be a great investment in your professional development and your business Enjoy every moment We look forward to seeing you at the NWDE SOHC TODS WCDS PDC and of course the Health and Wellness Winter Escape for Dental Professional s Mind Body and Practice If you d like to discuss your practice give us a confidential call 1 866 Go Avail 1 866 462 8245

Reserve Your Tickets Now!Reserve Your Tickets Now!ORHEALTH AND WELLNESS WINTER ESCAPE FOR THE DENTALPROFESSIONAL’S MIND, BODY AND PRACTICE

It seems like everywhere you turn there is a lot of talk about creating positive change – positive change in our lives, in theway we exist as a humanity, in the world and the environment. Generally speaking, we all acknowledge and agree that inorder to make these changes, we need to be clear and firm in our values, be energized, motivated and willing to meetchallenges head-on while remaining emotionally and physically resilient, oh and don’t forget – we need to be happy! But,sometimes, while focusing on making the difference and delivering value to those around us, we tend to forget the mostimportant elements for our overall success - ourselves, our physical health and our mental well-being.When you are working hard to achieve your goals, you can easily put your self-care needs aside. Deadlines dictate, stressand fatigue start to accumulate because of long working hours, and you get lost in the vortex of screens and informationoverload. Putting your needs aside leads to burnout, disconnection from yourself and your values, stress, anxiety and othermental illnesses that you may not notice until the wake-up calls start to appear. The Health and Wellness Winter Escape is an opportunity to find your centre, your ‘true north’ and to remember that youshould be your number one priority. In order to be the best that you can be, to show up for your career and community, andto live with vitality and joy, you first must show up for yourself.Maybe you cannot fully control the demands of everyday life, but you can prioritize self-care and put your well-being on yourto-do list.The Health and Wellness Winter Escape for the Dental Professional’s Mind, Body and Practice promises to help you show upfor yourself. This unique event offers seminars which focus on physical health (such as yoga, mindfulness walks, bikeriding, low-impact circuit training, reflexology, ergonomics to avoid dental-related repetitive stress injuries and more), mentalhealth (such as laughter therapy, mind/body connection, trust and communication, learning to bring work and life intogreater balance, micro-dosing, mindfulness and meditation, breathing exercises and more), and practice health (such asbeing a rockstar team member, passion in dentistry, leadership development, efficiency tips and tricks, and more).This event is ideally suited for Dental Professionals, team members and family members. Everyone can, and will, benefitfrom this opportunity to prioritize self-care and put your well-being on your to-do list.We look forward to seeing you, February 2024, in beautiful Palm Springs California!HEALTH AND WELLNESS WINTER ESCAPE FOR THE DENTALPROFESSIONAL’S MIND, BODY AND PRACTICETHE DENTAL DESK MAGAZINE  | 11www.AvailDentalAdvice.com

BY YVETTE SHANAHAN THE SKY IS FALLING HIGHER INTEREST RATES AND LOWER MULTIPLES WHAT DOES IT ALL MEAN You might recall the old folk tale Chicken Little from your childhood The tale stars Henny Penny and her friends panicking to alert everyone that the sky is falling Of course we find out the sky wasn t actually falling and Henny Penny had merely been bumped on the head from a falling acorn Fast forward to today In the dental world it might feel like quite a few acorns have fallen but does it mean the sky is falling It most definitely does not mean that the sky is falling Acorn Number One and it s a big one was a global pandemic that temporarily shuttered clinics triggered panic sales and purchases reduced our work force and created a fearful patient base If there was a time to feel like the sky was falling that likely was it But look at the recovery Clinics have not been shuttered in more than 3 years The hunger for clinics is reasonable and sales are slow but steady The work force has reduced no doubt about it but the situation is improving and patients are coming back in droves with nary a thought about covid transmission The sunny sky is not falling Acorn Number Two the global pandemic creates a correction in the market place Pre pandemic the rate of multiples was arguably bordering on ridiculous Comparable to the housing market clinic prices were getting so high that mostly DSO s or self financed doctors and groups were the only ones fast enough and with enough dollars to buy in The next generation of dentists were slowly getting squeezed out of the market place and clinic ownership was becoming a pipe dream Now many factors have contributed to the correction in the marketplace but the bottom line is this multiple have dropped to a more reasonable rate For sellers it might feel like you have missed out on a big payday For buyers it probably feels like you finally have a reasonable chance at ownership The truth is for sellers if you weren t ready to sell at the time of highest multiples then that perceived big payday was never on the table For buyers you were always in the game it s just that now there are fewer multiples barriers between you and ownership At the end of the day someone is selling and someone else is buying The sunny sky is not falling Continued

Acorn Number Three - pandemic-related high rates of inflation create reactionary rises in interestrates. Remember when I said there were fewer ‘multiples’ barriers for buyers? That’s probably a goodthing, because it now costs buyers considerably more to finance a clinic purchase than it did whenmultiples were so high. For the sellers who are thinking they missed out, consider that for buyers thecost of borrowing is now 3.2 times more than it was back in the days of higher multiples.Now I won’t lie - higher interest rates have slowed the pace of sales. Purchasers are being verycautious, but they are still purchasing. Every day, across this big, beautiful, complicated, flawed, freecountry, clinic sales are taking place. There is supply and there is definitely demand. The sunny sky, isnot falling.In the folk tale, Henny Penny eventually realizes that the sky was not falling and that she was hit on thehead with a falling acorn. All of the panic and fear was unnecessary. To those who are channelling their inner Henny Penny and who might be believing the panic and feararound the ‘falling acorns’ I offer these reminders … ‘This, too, shall pass’ and the sunny sky is, mostdefinitely, NOT FALLING.THE SKY IS FALLINGCONTINUEDTHE DENTAL DESK MAGAZINE  | 16www.AvailDentalAdvice.com

Numbers tend to beblack and white. Theydon’t lie. Numbers illuminate the tangiblethings - like profitability. But, ifnumbers don’t lie then how can anyvaluation be inaccurate? The answeris that numbers can be manipulated. This is why it is vitally important tohave your valuation vetted by youradvisors. Consider it a sober secondlook. And it’s tricky because youmight really believe that your clinicshould have a higher value. You mayhave heard that your colleague downthe street sold for ‘x’ and thereforeyour clinic should have that value too. ContinuedI N A C C U R A T E V A L U A T I O N S C R E A T E B I G D R E A M SA N D E V E N B I G G E R P R O B L E M S BY DARR EN SHAN AHANRecently, it seems like we (at Avail)have been seeing more and moreclients coming to us withinaccurate appraisals (for a varietyof reasons), which have led tosome frustration and heartache. It’san unenviable position to be inwhen we are tasked with explainingto an owner why the number on theappraisal is not a real-world numberand why it is not going to be usablewhen trying to move forward with asale.Business valuations are, both,straight-forward and tricky beasts.Unlike the value of a home,business valuations require manyfactors, which are constantly influx, in order to determine anaccurate value. For example, In ahome sale, you may have recentlyrenovated your kitchen, which couldadd significant value to your homeprice. In a clinic, renovations andaesthetic improvements rarelysignificantly impact the value.As owners, there is often atendency to believe that this entity(which we value so greatly) will begreatly valued by potentialpurchasers for all of the samereasons that we value it. Thereality, however, is that potentialpurchasers rarely value all of thesame things that the owner values. This is the grey area. The grey areais not reality. No matter how lovelya practice may look or even feel, itis not a relative factor. It is notquantifiable. Similarly, it doesn’tmatter how much the owner*believes the clinic is worth (or howmuch the owner wants for theclinic). Without solid figures toback the value assigned to theclinic, those beliefs and wants are,generally, not relevant. www.AvailDentalAdvice.com

Sometimes it’s these beliefs, or wants, that can drive your valuator to manipulate the numbers andinaccurately value your asset in an effort to reach the value that you, the owner are expecting. But this isnot fair to you or anyone.Inaccurate valuations can occur when too much emphasis is placed on intangibles. One of the mostcommon ‘inflator’ of valuations happens when intangibles, such as projections, are assigned a significantdollar value. No buyer, and certainly no advisor, would recommend paying for potential - especially whenthe buyer is the one who has to reach the projected production in order to support the value. It amountsto paying someone else for work that the buyer, ultimately, has to do. How does that make financialsense? Ask yourself this one question, “would you buy your practice at an inflated or inaccurate price?” If youanswered yes, then ask yourself if - or how - you would get financing for it and how much of a return onyour investment would you be getting for that purchase? Understanding these pieces may help you toidentify if your practice might be inaccurately valued. Additionally, no two practices are the same, ergo they will not have the same value. If you hear that yourclassmate or colleague got “X” dollars for their practice, that doesn’t mean your practice will get thatsame value. Factors such as you hygiene, location, staff, profitability affect every value differently. Thereare so many factors that, if the valuator doesn’t take it all into account correctly, they can overvalue yourasset, setting you up for frustration and causing you to feel like you’ve somehow lost money. You must be cautious of the over-valued practice as it can set you up for a big disappointment when yourealize that the inaccurate value was never attainable. This can also stigmatize your practice in themarket to the point that, even serious, buyers may walk away and not come back to the table despiteprice reductions later in the sale process.It’s so important to understand that an accurate valuation may initially elicit some feelings ofdisappointment but it will ultimately result in far fewer problems and disappointments for all parties. Relyon your (experienced in the business of dentistry) advisors to give you honest feedback on your valuationand avoid the heartache of an unusable number. INACCURATE VALUATIONS CONTINUED

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

Knock, Knock.Who’s there?A little old lady.A little old lady who?Hey, you can yodel!!‘Knock Knock’ jokes get a bad rap - (see what I did there? Knock, knock - rap? Ha Ha)!Seriously though, I enjoy a good knock-knock joke. I really enjoy a silly ‘Dad’ joke and I absolutely love puns!!Since we all know how good it feels to laugh (and how good laughter is for us), I offer these nibbles to tickle yourfunny bone. These are a few of my favourites:LAUGHTER IS THE BEST MEDICINE!Knock, Knock.Who’s there?Etch.Etch who?Bless You!Dad Jokes: “How do you followWill Smith in the snow? You followthe fresh prints”!“How does dry skin affect you atwork? You don’t have any elbowgrease to put into it”!Puns: “Every day I take my pet cowfor a long walk in the vineyard. Yes… I heard it through thegrapevine.”“I hope I’m still alive in 45 years soI can ask on 2/4/68, who do weappreciate?’

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.comOctober 2023 Come back for Issue #15 which will reveal industryinsights, predictions and trends for the Fall.