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Bentson Copple & Associates Welcomes New Placement & Talent Acquisition Consultant

Bentson Copple & Associates New Placement & Talent Acquisition Consultant

Bentson Copple & Associates, LLC, the leading valuation, transition, career placement, and recruiting company for the orthodontic profession, is excited to announce the hire of Shane Burden as a Placement & Talent Acquisition Consultant.

Shane brings over 13 years of orthodontic and dental industry experience to the BCA team. He began his orthodontic career with Rocky Mountain Orthodontics (RMO), where he reached success at every role and rapidly excelled into a management position, leading a team throughout the Mid-Atlantic and Southeast Region. After just a few years in his leadership role, he became the Manager of North America, leading the RMO aligner team. Shane also has developed lifetime friendships with many of the doctors he has met during his career. Shane graduated from Northern Kentucky University with a degree in Secondary Education and a minor in Business. 

Shane will be working very closing with Shannon Patterson, CPR, CMSR, the company’s current Director of Practice Opportunities, and one of the company’s partners. “To keep up with the increased demand for orthodontists seeking short-term and permanent career opportunities, we are excited to welcome Shane Burden into this role,” said Patterson. 

Shane’s role serves as a liaison between Bentson Copple & Associates and all orthodontic residents, doctors seeking career opportunities, and orthodontic residency programs located in the United States. Shane is tasked with developing lasting relationships with all orthodontic candidates by:

• Locating the best orthodontic career opportunities based on the doctor’s personal preferences and financial needs. 

• Providing guidance in developing overall career goals.

• Coordinating Lunch & Learn webinars for all orthodontic residency programs.

• Offering feedback and advice on personalized CVs and cover letters for candidate doctors.

• Becoming a long-term resource for all things orthodontic career-related. 

“He is an outstanding new addition to our team and brings a wealth of knowledge and industry experience. Our company continues to grow to better serve the orthodontic community in all steps of their career – from seeking opportunities, to adding an associate or partner, to retiring,” says Chris Bentson.


About Bentson Copple & Associates:

Bentson Copple & Associates performs orthodontic practice valuations, provides recruiting services, and negotiates transactions with seekers & sellers. The company assists orthodontists nationwide during the pivotal points in their careers. Their career placement arm is unmatched as they place orthodontists in private practices & corporate entities. The company has extensive experience and knowledge of the orthodontic marketplace, having worked with thousands of clients. In addition, the company publishes the Bentson Copple reSource, a quarterly publication focused on the non-clinical aspects of operating a thriving orthodontic practice.

What Is the Difference Between a Non-Disclosure Agreement and a Non-Compete Agreement?

What Is the Difference Between a Non-Disclosure Agreement and a Non-Compete Agreement?By: Shannon Patterson, CPR, CMSR
Kolbe Certified™ Consultant
Director of Practice Opportunities

As a recruiter, I often hear the question “What is the difference between a non-disclosure and non-compete?” from candidates who are seeking employment opportunities. It is important to understand the differences and what they mean for you as a candidate.

A non-disclosure agreement is a promise that you will not disclose any of the information shared with you about a potential practice opportunity. Often it will include practice and/or doctor name, location, patient information, expansion plans or any financial information about the practice. It does not mean you can’t work for a competitor; it simply means you can’t use proprietary or confidential information you learned or obtained from the practice with another practice. You will often be asked to sign this agreement by a client or representative of a client before they discuss the specifics about their practice opportunity. Importantly, non-disclosure agreements almost universally allow you to share confidential information with your attorney or other advisors in the buying process.

A non-competition (restrictive covenant) agreement means you agree not to directly compete or provide services within a certain proximity of the practice for a set period of time. The purpose of a non-compete is to protect the former practice employer against unfair competition. As a provider, you will have access to confidential business information and develop close relationships with patients and staff and could exploit the information to lure patients away from the practice. A non-compete is designed to protect the practice from this risk.

Who enforces a non-compete? The enforceability of non-compete agreements will vary from state to state. Most states have statutes or case law that either prevents or restricts the enforceability of a non-compete agreement. States that permit the enforcement of non-competes will do so only if the covenant is reasonable in scope (meaning it is limited to the services the provider actually rendered while employed by the practice), duration and geographical area.

What geographic area does a non-compete cover? A non-compete covenant should only prohibit a provider from continuing to provide services in the same general area where he or she provided services before disengaging with a previous practice. In most states, the restricted area should be no larger than the area from which the previous practice draws 80% of its patients. Therefore, a reasonable radius for a non-compete will depend heavily on the population density of a particular area – generally, a larger radius is enforceable in rural areas. The opposite is true in more urban areas.

How long do non-competes typically last? The time periods can vary, but generally, the covenants are in effect during the employment period and for a period of 12 to 24 months following the last day services are provided to the practice.

Non-competes and non-disclosure agreements are two important documents to understand each having a distinct but separate purpose.

What Metrics Should You Focus on During Your Initial Review of a Practice Opportunity?

What metrics should you focus on during your initial review of a practice opportunity?By: Anthony Copple, JD
Transition Specialist

Reviewing an opportunity to purchase a practice outright or to buy into a practice as a partner can be an overwhelming task. You may have been presented with a mountain of data about the subject practice: tax returns, profit and loss statements, and operational reports. What does it all mean? What should you focus on? What data is important in determining a fair value for the practice?

Well…the long answer is that all of the data and information surrounding a practice is important in determining its value. After all, an orthodontic practice is a unique asset and no two are exactly alike. However, there are a few things you can focus on that will provide a reasonable snapshot of any practice. Three of the most consequential are explained further below:

Practice Overhead Rate
The overhead rate of a practice is one of the most important factors in determining a practice’s value and the benefits that practice will provide to a buyer. After all, the overhead rate ultimately determines the amount of cash the owner can reap from the business. Generally, the lower the overhead rate, the more valuable the practice. So, a practice at 55% overhead will be more valuable than a practice at 65% overhead, all else being equal. The average practice overhead rate for an orthodontic practice is 58% of collections. If operating expenses are below this level, it can drive the price of a practice up while expenses above this threshold will generally have the opposite effect.

Practice Production
Production acts as a bellwether for practice collections; it tells us where we’re headed. If the practice produces $1,500,000 this year, we can expect that the practice will collect something close to $1,500,000 next year. Knowing this, we can use practice production, practice collections and their relationship to one another to identify trends within the practice. If practice collections have grown over the past two years and production in each particular year exceeds our collections in the same year, we can be fairly confident that the practice will see continued collections growth in the following year. This can be vital to practice value because a growing practice has more potential, and less risk, than a declining practice.

Practice Contracts Receivable
The contracts receivable balance is the total amount remaining to be billed to the active patients of a practice. This can be distinguished from accounts receivable because accounts receivable have already been billed to the patient and are currently due. The contracts receivable balance gives us an indication of the stability of the expected future cash flow of the practice and an idea of the number of active patients that are paid-in-full.  We know that we can expect cash flow from the contracts receivable balance as we treat current patients of the practice regardless of the number of new starts we have. On average, a practice’s contracts receivable balance is approximately 50% of prior year production. Below that level, and the practice likely has more paid-in-full patients than the average orthodontic practice. This would add risk for a buyer expected to continue to treat those paid-in-full patients after the closing without collecting patient fees. This additional risk tends to drive the practice price down. Of course, if the contracts receivable balance is above this threshold, it can add value to the practice.

As I said above, there are dozens of factors that go into determining the value of a practice. No one point of data will tell you everything you need to know about a practice. However, analysis of the three metrics above should give you a pretty solid idea of the type of practice you are looking at and whether it is worth pursuing further.

As an Orthodontic Resident, When Should I Begin Searching for a Practice Opportunity?

As an orthodontic resident, when should I begin searching for a practice opportunity?By: Mandy King
Client Support Associate

As a liaison for residents seeking orthodontic opportunities, my job is to provide you with support during the recruitment process with our placement services. In doing so, I am able to share insight about crafting an “About Me” letter, preparing a curriculum vitae, and answer any questions you might have, including ‘when should I start looking for an opportunity?’

You should begin to determine in which state and city or town you wish to practice after the first six months of your residency. If you wait until your last year to start the process of identifying the area in which you wish to live, you are taking a gamble on finding an opportunity. Some of you are pretty open to different areas, which is great because this will give you more opportunities. A good rule of thumb is, beginning when you are one year out from graduation, you should dedicate two hours per week to your job search depending on your geographical preferences.

If you are considering buying-in or purchasing a practice, you need to start preparing early. Be on the lookout a year or two in advance for practices for sale in the areas where you hope to purchase. Speak with a lender to determine financial goals you may need to meet in order to be extended a loan.

Do not hesitate to inquire about opportunities that interest you or to ask questions you may have about current market trends. You never know when the “right” one will present itself.

Each month our team sends out the Bentson Copple InSight e-newsletter which includes a list of available practice opportunities. If you are not receiving the InSight and would like to stay up-to-date with current orthodontic career opportunities, please click here and sign up.

How Do You Determine Your Career Path After Orthodontic Residency?

By: Mandy King
You have taken that step in identifying a career that appeals to you, but deciding your next step may still be the missing piece of your puzzle. There are many factors you need to examine and decisions you need to make as you approach your final year. You should be asking yourself a few questions:

Where Do I Want to Live?
This is extremely important for those who have a family. Being in agreement about where you would like to practice is a decision that should be made with your spouse. Does the community culture align with your beliefs and values? Ask yourself if the area meets your interests and financial needs. Making sure you and your family will be “happy” is a key factor when deciding where you want to practice.

What Are My Short-Term and Long-Term Goals?
Making a career plan takes time and effort on your part. Commit to establishing your expectations and objectives as you seek an opportunity. Remember who you are and why you chose this career.

Do I Want to Practice as an Associate in a Private Practice?
Ask yourself if you desire mentorship from a senior doctor. Do you see yourself working with this potential employer? Do your personalities “mesh”? Make it a point to visit the practice and see if the culture is a good fit for you. Observe the interaction between the staff and the patients. Can you see yourself practicing in that environment?

Am I Willing to Work for a DSO?
If you are wanting to focus solely on orthodontics, corporate may be a better choice. In some cases, you can negotiate a schedule and salary that are guaranteed regardless of the organization’s ups and downs. As with a private practice, just be sure to find the right fit.

Would I Like an Equity-Minded Associateship Opportunity?
This is an opportunity to consider for an orthodontist that desires to own their own practice in the somewhat near future. You are able to come in as an associate and “get your feet wet” by getting to know the patients and learning about the ins and outs of the practice you would one day be a partner in. Understand that non-competes in most states will be required and are enforceable.

Should I Purchase a Practice?
Financially speaking, is this possible for you? This path does allow you the ability to control your own schedule and usually maximize income. However, the freedoms of having your own practice come with a price. As a small business owner, you have many responsibilities that come along with that title and there are many resources available for you to get help in these areas.

This is an important decision that simply comes down to making sure you stay true to yourself by seeking the best opportunity for you and your family. Know who you are, choose a location, identify the right practice, and begin your journey in confidence.


This article was featured in the September 2018 edition of The InSight, our monthly email published for orthodontic residents and doctors seeking practice opportunities. This monthly email provides news and information focused on the fast-changing orthodontic industry and its relation to current and future orthodontic careers, highlight commonly asked questions that are timely to the young orthodontic community, and provide a current list of available practice opportunities. Click here to sign up for the email. 

New Bentson Clark & Copple Website Launched


We are excited to announce the launch of our new and improved website, www.bentsonclark.com.

The new mobile-friendly website features a modern design and an easy-to-navigate interface. Created with the user experience firmly in mind, the website has been developed using responsive design so it is compatible with today’s browsers and mobile devices to deliver a better cross-device experience.

“Bentson Clark & Copple is continuously looking for ways to deliver the best experience to our current and potential clients,” said Chris Bentson, Partner of Bentson Clark & Copple. “The website was created to allow easy access for visitors to obtain the information they need when considering the future of one’s orthodontic practice, across any device.”

Over the past few years, the Bentson Clark & Copple team has experienced growth in the Recruiting/Placement Services portion of their business. The new website provides orthodontic clients and candidates valuable resources and information regarding recruiting and placement of orthodontists who are seeking associateships, equity-minded associateships and permanent placement services.

The website also includes the following:

  • Searchable Career Opportunities – Orthodontic residents and doctors seeking career opportunities can search available practice opportunities by geographic location, type and status.
  • Helpful Resources – Browse an array of articles and consultant links for orthodontists of all career stages.
  • Bentson Clark reSource Information – Subscribe or renew one’s subscription, learn what readers and contributors are saying about the publication and read samples of past editions.
  • Blog Posts – Peruse posts offering practical, useful advice and knowledge addressing a variety of topics.

To access our new online experience, simply visit www.bentsonclark.com from your desktop or mobile device. Let us know what you think!

True Overhead of an Orthodontic Practice

P&L StatementWe find that a doctor’s Profit and Loss Statement (or P&L Statement) hardly ever reflects the true expenses required to produce the top line revenue stated. Why? Depending on how the practice is structured, there are a number of discretionary expenses that a doctor and his/her accountant may choose to run through the practice. Some common items hidden within a P&L Statement are the doctor’s payroll taxes, the doctor’s health/life (and sometimes disability) insurance, the doctor’s retirement contributions, automobile expenses, and certain travel and entertainment expenses, just to name a few.

To understand the true overhead of an orthodontic practice, it is often necessary to deduct these expenses from your P&L Statement, and then recalculate your overhead rate. After doing so, the question most doctors ask us is how they compare to industry norms. While there is no correct answer to what a practice’s overhead should be, we have produced a document that will help doctors compare his/her overhead to the average benchmarks seen in the orthodontic practices we value. Click here to access this sample P&L Statement document. Once you download this reference sheet, take out your P&L Statement from the last complete year and begin to make entries. Enter your actual expenses in the unadjusted column on the left (entering each into the best available category), and then remove discretionary business expenses in the adjustments column to determine the final adjusted figures, which will provide your true expenses to operate the practice. In an hour or less, you’ll have the best view of your practice.

Click here to download the sample P&L Statement.

Practice Valuation 101

You may be aware of the general concept of business valuation, but may question how an orthodontic practice valuation works. Obtaining a properly performed valuation is the key to maximizing a doctor’s return on their investment of time and effort in the practice. There comes a point in each orthodontist’s career when he/she must determine the value of their practice and the best way to do so it is through a properly performed valuation.

The most important part of any valuation is collecting the practice’s financial information. To determine the fair market value of a practice, a critical assessment of a practice’s current and past operational and financial information is required. We provide an information-gathering package that outlines the information necessary to properly establish the practice value. Various financial and operational data and reports are requested, including the following:  the last three years’ profit & loss statements and the most current interim profit & loss statement; the practice’s tax returns for the past three years, including any other supporting statements; the most recent tax year-end and month-end balance sheets; a list of fixed assets; production and patient starts for the last several years; and a list of active patients that are paid-in-full. The information should be pulled from a number of sources including one’s practice management system, accounting system, and the practice’s accountant, among other sources.

The next important step in the valuation process is an on-site practice visit, which, ideally, should happen on a patient clinical day. During the on-site visit, we verify the fixed assets, examine the physical building and surroundings, ask questions to clarify certain data, observe patient flow and view the staff’s interaction with patients and staff (including the doctor). The visitation helps identify important items that cannot be documented in financial reports, such as the feel of the practice location, location relative to schools, competitors and referrals. It also lets us verify fixed assets in service, strength of staff and many other critical intangibles that could impact the overall value.  The visit is also important as it allows us to review the data sent in prior to the visit, fill in any missing data pieces and to discuss the doctor’s transition preferences that will occur after the valuation is complete.

Once all of the information has been received and the practice has been visited, a valuation can be produced. The valuation report includes not only the value of the practice but summarizes the financial and operational data and provides an overall review of certain demographic information potential buyers will want to understand and consider.

How Long Will My Orthodontic Practice Transition Negotiations Take?

In the world of orthodontics, timelines are extremely important.  From day one, patients ask, “How long will I have to wear my braces?” As a doctor you provide your best estimation, stating if all things go as planned AND you are compliant, things should stay on time.

In the world of practice valuation and transitions, the second question asked by many doctors (after the total cost of the transaction) is: “How long will my orthodontic practice transition negotiations take?” At Bentson Clark & Copple we tell orthodontists to allow about 6 months, 90 days for a valuation study and another 60 to 90 days for any negotiations and documents.

You’ve identified the candidate; they have reviewed the prepared practice valuation and physically visited the practice. You want to move forward. You have likely discussed the transaction on a high level, and you are now delivering the terms of the proposed transaction to your candidate. The terms are typically delivered in a document called a “term sheet” or “letter-of-intent.” This is usually a five-to-seven page document that outlines the asset allocation of the purchase price (for tax purposes), association periods and compensation for both doctors before and after closing, remedies for breach, non-competes or liquidated damages, how retreatment issues will be addressed, real estate matters, financing terms, and certain representations and warranties by both buyer and seller. This document will be the road map for the attorney to draft legal, definitive documents. Typically, a cash-flow pro-forma is presented in conjunction with the terms so that both parties have a financial illustration of how the transaction relates to their expected income over a period of years.

An open, back-and-forth dialogue between both parties is expected as terms are agreed upon. We suggest that both parties have knowledgeable representation during this stage of the transaction. There are companies that encourage the idea of representing both parties, but Bentson Clark & Copple suggests that both parties seek separate counsel, as there are definite financial conflicts on almost each deal point in a transaction.

However, be aware of pitfalls during this process.  A “my way or the highway” attitude is likely not practical. The fairest spot or win-win most commonly occurs with both sides feeling a similar degree of discomfort. On the other hand, giving too many scenarios or too many different ideas of how to get to agreement often confuses one or both parties to the point of not being able to make a decision. Paralysis by analysis can happen on both sides of the transaction. Careful is good, but if you miss seeing the forest for the trees, the transaction can die, and an opportunity for both buyer and seller could be missed.

Orthodontic Practice Lease Considerations – Part 2

We previously discussed some of the issues regarding an office lease that need to be considered when buying an orthodontic practice and the selling doctor owns the office. In this article, we will discuss lease issues to be considered when the office is leased from a third party.

The first item to consider is when you can contact the landlord about lease terms once you purchase the practice. Quite often, the selling orthodontist wants the sale of the practice to remain confidential as long as possible. The seller may not want the landlord to know that he/she is selling the practice until many of the other sale and financing terms are agreed to by the buyer and seller. Thus, the buyer’s conversations with the landlord may not begin until later in the negotiation process.

Just like when the selling orthodontist owns the real estate, the lease terms must be considered. The buyer generally has to get at least a 5 year lease term, inclusive of renewal options, in order for a bank to provide financing for the transaction (the bank wants assurance that the buyer will have an office to treat patients and earn income for a reasonable amount of time in order to repay the purchase loan). The landlord generally prefers a longer lease term, and the buyer has to consider how long he/she plans to stay in the office and whether another office or location in the city is better for the practice. If the buyer’s plans are to relocate the practice soon, he/she should try to negotiate a shorter initial lease term with options to extend the lease for one year periods (to satisfy the lender’s requirement).

The lease rate also needs to be considered as we have seen some instances where the seller has been in a tenant in the office for a number of years without a rate increase, or without a formal lease agreement, and has a very good relationship with the landlord. When the seller is no longer the tenant, the landlord may see this as an opportunity to increase the rental rate to fair market rates, which has an impact on the practice’s profitability. Similar to when the seller owns the office and the fair market lease rates should be considered when the practice valuation is prepared, if it is fairly certain that the lease rate will be increased in the future, the practice valuation should take this into account and the buyer should be made aware of this early in the process.

Finally, one of the biggest issues we often face is the landlord’s reluctance to release the selling orthodontist from personal liability related to the lease (particularly when the lease is assigned to the buyer). The individual doctor often personally guarantees that his/her professional corporation will pay the lease.  The selling doctor usually has been a tenant in the building for a number of years, is financially well established, and may have a great relationship with the landlord. With the sale of the practice, the buyer will be required to personally guarantee the lease payments, but the buyer usually doesn’t have substantial personal assets as does the seller. More than likely, the buyer has minimal liquid assets, a lot of student debt, and very little or no experience running a practice. Understandably, this makes the landlord nervous and the landlord may refuse to release the selling doctor from his/her personal guarantee of the lease. This is an issue for the seller, which may require additional negotiations with the Landlord as to how long the seller will remain a guarantor.

There are many items to consider when selling and transitioning an orthodontic practice, and the lease agreement is just one of those items. However, the lease can often turn in to a multi-faceted negotiation process that can take longer than the parties anticipate.

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