Following a succession of corporates buying dental practices outright, new comer to the market Panda Systems is offering practices alternative methods of gaining the benefits of additional management expertise without losing their equity.
"We are seeking to build financial and management partnerships with young, independent dentists to super-charge their growth, improve and support their practice management and program their financial success, generally over a five year period," said Simon Bubear, Managing Director of Panda Systems.
"During this period, the dentist retains ownership of their practice, so they not only have access to their capital investment without selling their business, but throughout their time with Panda and beyond, they can realise business growth and the subsequent profits this will provide."
Mr Bubear said that Panda Systems offers practice support plus the option of a joint venture agreement if desired.
Practice support services include:
- Financial administration - accounts, banking, payroll, reporting, BAS, super, tax;
- Advertising and marketing;
- Practice software support;
- Access to subsidised clinical up-skilling;
- Weekly financial reporting and detailed analysis to facilitate growth; and
- Monthly site visits.
The optional Joint Venture agreement includes:
- Full "Practice Support";
- Capital injection of an agreed amount - relating to net profit;
- Interest free loan;
- Discount on consumables;
- 50% gross minus lab for principal, paid weekly;
- Industry benchmarking; and
- Freedom to maintain clinical delivery.
"In addition to the service of providing financial management and practice support, Panda Systems also selects suitable practices with a view to providing equity capital to facilitate growth without the principal dentist relinquishing ownership of the asset which the practice represents," Mr Bubear said.
"Retaining this ownership enables dentists to exercise their right to the clinical delivery which they choose, without outside interference. Enlightened by accurate financial reporting, dentists partnered with Panda Systems are free to make their management choices within the constraints of their documented profitability. Also, because they retain ownership of the practice, participating dentists can look forward to the enjoyment of any growth in profitability and asset value. This model is totally different to that offered by the corporates."
Focused on business best practice, Panda Systems is confined to providing practitioners with a clear view of their business performance allowing accurate and strategic business decisions to be made.
"We have an innate respect for the dentists' right to control the clinical side of their practice without external interference," Mr Bubear said. "By allowing Panda Systems to look after their administrative responsibilities, dentists will be able to concentrate solely on their clinical strengths, which will assist them to achieve a more balanced working life.
"The dental industry is already recognising the need for a greater focus on the business management of their practice, but for many practitioners this can be time consuming and can detract from their patient care. Our aim is to help dentists address this balance, by taking advantage of our business expertise."
Monday, 14 October, 2024