Dental Cooperatives vs Private Equity Buyouts

Dr. Alex Otto and her husband, Tim, are previous guests on the podcast. Dr. Alex is a pediatric dentist, they own and operate four offices in the Austin, Texas area. Tim has an MBA and a strong business background working with fortune 500 companies. They join me on the podcast to discuss their latest project, Alcan Dental Cooperative. Alcan is a cooperative model in which pediatric dentists can join in exchange for a minority equity position. Unlike DSO/PE buyouts, a dental cooperative works by helping dentists systemize and grow their practice without being forced to sell out to a majority shareholder. The dentist keeps the practice but gets the benefit of outsourcing A/R, marketing, HR, etc. using scalable systems. This also increases practice valuation in the both companies as well. Tim and Alex explain this model to me and describe the benefits that it offers to pediatric dentists who are stuck somewhere in between the grind of solo practice ownership, and selling out the entire practice to a DSO. You can learn more at www.alcandentalcooperative.com