WebsiteClosers® presents a SaaS Model Software Company in the Dental Industry, recognized today as a pioneer in the field of software designed to manage the business end of dental offices. Launched in 1978, the company’s technologically advanced legacy software and continued training and support services have proven so popular in the lucrative dental industry that most active clients have been with the business for 30+ years. The software is highly sticky, resulting in a very low churn rate.
The additional services this company provides, including solutions for computer hardware and ongoing technical support, have given this business excellent recurring revenues. The business remains on the cutting edge of new technology and maintains a prominent role in the advancement of dental software. The company recently launched a new generation of their software that is attracting additional customers and has enabled their team to upsell that version to existing clients ready for a more sophisticated software system. With the next version now in development, the company will have additional future opportunities to drive sales higher and expand its customer base.
The company’s support services now make up 92% of its revenue, and the business maintains a skilled and professional team that manages technical support, customer training, continued development of its software, and customer service. The business is known among customers for being both accessible and innovative, and their next generation software is both server and cloud-based … workings on mobile devices and tablets. The business also provides clients with electronic statements and a patient engagement platform that allows dentists to send out appointment reminders, confirmations, patient forms and to direct them to Google my Business review pages. The business now offers 17 services, and sales remain steady throughout the year with no seasonal factors impacting sales.
Over the years, the company has attracted dentists in private practice, dentists operating multiple practices under one office, and medium-sized dental firms. No single client makes up the bulk of the company’s sales, since their top 3 customers represent just 6.67% of revenue. Most of their clients have been with the firm for decades, stay on for ongoing support services, and can be billed monthly, quarterly, or annually, depending on the individual clients’ preference.
The business is operating in two immensely profitable and evergreen verticals. The dental industry is now undergoing a major shift, driven by new technology and shifting patient expectations. More dental practices are following the lead of this company’s clients by looking for AI-based solutions to successfully manage the business end of the practice.
SaaS business models are also in high demand today. The revenue model of software licensing companies relies on subscriptions and long-term customer loyalty, not sales of common products, and B2B SaaS models providing software to other businesses are red hot now. This sector brought in $623 billion by 2023 with an 18% growth rate, and SaaS now represents the largest segment of the world market for public cloud services.
With this company’s long track record, loyal client base, and continuing software development and innovation, there are plenty of clear opportunities for a U.S. Buyer to acquire this company and then scale it quickly. That could include continuing to convert past and existing clients to the next generation software, building out a thriving sales team, and attending trade shows and other dental industry conventions to promote the software more vigorously.
Business Broker Takeaway
We are excited about this business for 3 important reasons:
1. A High Tech Team. One of the key reasons for this company’s successful track record has been the team of employees managing operations behind the scenes. The seller has employed a highly skilled and professional group that includes three developers, a technical support operator and a customer support operator, and two trainers who oversee customer success. These are all full-time positions, and the team’s vital work includes managing calls that come in through the company’s support line or to the customer success managers. This team manages client accounts, daily operations, and the development of new software, freeing up a new buyer to focus instead on scaling this business, which has plenty of untapped potential for growth in the future.
2. Proven Marketing Tools. While customer testimonials and word-of-mouth referrals within the dental industry have been strong advertising tools for the company, additional digital marketing tools are being used to build their client base. The business has been particularly successful in using paid media ads on Google that include SEO keywords and links to their website. The company also has an educational blog on its website that gets updated regularly, and the team uses a social media marketing campaign to target new dental practices. With nearly 1,000 subscribers in their email database, the business targets current customers and prospective ones with newsletters and regular email blasts.
3. Improving Technology. One reason why the company is attracting new clients is its decision to update its legacy software and introduce a new version. The next generation software has brought on new customers in impressive numbers. While the original version was server-based, the new version is both server and cloud-based as part of their SaaS model. The fact that it can also be used on a mobile app or a tablet also appeals to more tech-savvy customers. The company has also continued to introduce new services, including software for electronic prescriptions and cloud backup for their accounts.
Conclusion
Launched in 1978, the business set out to create a dental practice management software that would provide a complete solution for running the business side of dentistry. The business has thrived since its founding through a commitment to building lifelong relationships with clients and making customer satisfaction its top priority. The business also set out to remain on the cutting edge of technology, which it successfully does with its ongoing, next generation rollouts.
Dentistry remains a thriving industry, and the industry has followed other businesses in shifting to a SaaS model for maintaining patient records and communications. This has given the company a successful recurring revenue business model and a 47-year history with a proven product that has now been updated and improved.
With their very loyal customer base, professional team in place, and clear scale opportunities, this is a business that will open up huge possibilities for an ambitious investor.
