Monthly Archives: August 2022

Does your dental practice have an exit strategy?  Many do not. As a business consultant and financial advisor, I have learned many strategies to help business owners and their families navigate difficult decisions. One such decision is, “what am I going to do with my business?” “Should I keep it and pass it down to my heirs, or should I sell it?” This Keep/Sell scenario usually plays out before any planning is thought through and implemented. There never seems to be enough time; business owners are typically too busy running their day-to-day operations. In my experience, I have seen several business owners pass away or become totally disabled prior to any plan execution, leaving the family and employees scrambling to keep the business profitable. As the

American poet, Henry Wadsworth Longfellow, once said:
“Great is the art of the beginning, but greater is the art of the ending.”

I was recently in Nashville TN at a business conference where I was introduced to a gentleman and his process of helping General Dentists/Business Owners with the problem of practice value; that is: “how to increase their practice value.” I was intrigued by the process. He stated the possibility of growing the practice with the added dimension of creating an exit strategy for the dentist. I have experience in this area, as I had helped the majority shareholder of a Dermatology practice with a successful exit strategy; however, this process was unique.

The strategy and process of increasing dental practice/business wealth was developed by Matt Kennedy of Dental Impact. As both the COO of a multimillion-dollar dental practice and a published author on the subject, Matt has developed a process that is simple, transparent, and effective. Having spoken to several dentists in the tristate area, I know that they are often approached by both their dental association and independent financial advisors regarding numerous financial subjects. However, I urge all who are reading this to keep an open mind and set 15 minutes aside to hear about Matt’s value proposition. To a general dentist or business owner, that 15 minutes could put $5-7 million dollars back into one’s retirement.

His proven process begins with “The Efficiency Accelerator” in which he uses a “Profit Scorecard”. In other words, he analyzes the business’ Profit & Loss Statement (P&L) along with their Personal Balance Sheet to find money they may be losing. Typically, millions are recovered over one lifetime.

“The Capacity Builder” is another step within Matt’s process. Using the “8 Driver of Practice Value” as a guide and “The Dental Freedom Code” to measure progress, dentists and business owners can see and capture the untapped potential of their practice, enabling them to get out of the dental chair or office.
Instead of an Exit Strategy, they’ll have a practice/business Options Strategy. If the choice is made to sell, one can sell up to 10x the current value. They also have the option to keep the practice and enjoy the profits without all the work. Or, ultimately, the choice could be made to pass the business down as their legacy.

A dental practice or business will be one of the most valuable assets one owns. Matt’s approach demonstrates how to take the outflows and redirect them back into the business. This will create more wealth and security in one’s retirement.

*Claim your free copy of Matt’s book, “Designing Dental Wealth” by emailing jacobr@victoryfiducairy.com. Please provide your name, address, and phone number and a copy will be mailed to you.

JACOB Riloff, Chfc, Casl

Jacob is the Strategic Consultant at Victory Wealth Partners. In that capacity, he specializes in business development issues for closely held businesses and their owners. He is an expert in business succession planning, exit strategies and advanced insurance planning techniques. Jacob focuses on providing business owners with sound planning to increase shareholder value in their privately held businesses. He has over twenty years of experience as a business-planning advisor.

Will the summer rally that started in July continue to pick up steam or will August cool off for investors? Markets were extremely bearish, extremely oversold, and were overdue for a counter rally after the steep selloffs experienced in May and June. We finally saw the expected rally in July where the S&P 500 rose over 8%. We also began to see a rotation from areas of value to areas of growth. Particularly to note, technology stocks have been making a large move off their bottom. Technically, we are currently trading two standard deviations above our moving averages. This means markets are currently overbought and will need to either have a slight pullback or at least trade sideways until some of the overbought conditions can be worked off. In other words, don’t be surprised if markets stagnate for a bit as markets do not typically move straight up. Currently the S&P 500 is finally trading above its 50-day moving average and this is now the current support line. If we can hold above this line, even during pullbacks this would be an encouraging sign that market strength is returning. Market breadth is also returning as currently 36% of funds in the NYSE are currently experiencing new highs versus new lows. That number was as low as 4% in June.

What does this mean in English? I believe the signs are reassuring that markets could continue their move higher. Potential hang ups for the market would be if inflation numbers continue to rise unchecked, or if the federal reserve comes back needing to be more aggressive with rate hikes. So far, earnings reports are showing weak earnings but “not as bad as expected” so markets are considering that a win. I would expect any unexpected weak economic data that has not been priced in could temporarily cool down the market response. We will be hearing more about July’s economic numbers in the coming days. I think any positive news could add to the current rally’s fire.

What should investors consider as we wait to see which way the market moves? Often, we can see major market rotations when we come out of a significant correction. What was working a few months ago may not continue to work once the dust has settled and new market leaders emerge. Don’t be afraid to cut out allocations that are no longer performing their role. Remember, every holding should have a defined purpose. When the market has truly bottomed, and we are on our way to a new bull cycle you want to be properly positioned to capture the current areas of strength and momentum. If you aren’t sure if you are properly allocated, this could be the right time to speak with a fiduciary financial adviser to make sure you are stacking the odds in your favor. No one knows what the market’s next move will be, we can only try to be properly prepared for what might come next.

As we enter in the last month of summer, we have been working hard taping and editing our first “Summer School” series. We have worked with leaders in the mortgage, real estate, debt management and estate planning fields to bring timely relevant content to our YouTube channel. It will be live in the coming weeks, and we hope you check it out. I also record monthly market update videos for our Youtube channel. You can watch our most current video below!

Until next month, enjoy these last weeks of summer. As always you can call me with any questions. We are happy to help.

ASHLEY ROSSER, PRESIDENT

Prior to her career in the financial services industry, Ashley earned her Bachelor of Science in Nursing from Cedarville University.

Ashley decided to make a career change from her ten years within the healthcare industry as a pediatric emergency room nurse to retirement and 401K investment planning. She joined Victory Wealth Partners in 2008 after obtaining her Series 65 professional financial license and went on to earn her AIF (Accredited Investment Fiduciary) professional designation from the Center for Fiduciary Studies.