Younger dentists' evolving career philosophies are changing how transactions are done in the DSO field, according to NextLevel Doctors Group Founder Gary Kadi.
Mr. Kadi recently spoke with Becker's about the trends he is following in the DSO field.
Editor's note: Responses were lightly edited for clarity and length.
Question: Are there any other trends you are following in the DSO field?
Gary Kadi: Smart millennials and really smart associates. We have an equity position for associates and most people who are younger now are learning they don't have to wait until the end of their careers to transact a sale. The young doctors understand that if they have an asset, they can leverage their asset and leverage themselves back in to get way ahead. So there's a smart group of millennials and Gen Zers coming in that are transacting.
The old school way for most baby boomers and early millennials was, you live to work. Now, they're working to live. When you can speak to the work-to-live conversation, and you can show them that you can remove the downsides of dentistry, they can still own a portion of their practice so they feel like they're validated that way, and then we can show them how the percentage we pay for their dentistry at 30% allows them to make more than the profit they would earn if they own their entire business. So what you're offering this group is a lifestyle, and because they really care about their lifestyle, they don't care about things. They're not here acquiring things. They don't have the depression ancestry conversation of fear and scarcity. The next generations know who they are, and they don't want to work the same way boomers and early millennials have.