WebsiteClosers® presents a Software Company that has kept their Dentist Clients smiling for over 40 years. They offer a complete Dental Practice Management Software solution, which has been crafted to help dentists handle the business side of their work.
They offer a full suite of 17 services plus computer hardware/solutions, training, and support. The brand also recently released their SaaS product, which, unlike their legacy server-based on premise software, is both server and cloud based. The new product also works on mobiles and tablets, providing customers with a convenient and accessible experience.
Business Broker Takeaway
1. Recurring Revenue Model. The brand generates most of their profit through their traditional packaged software, which is run locally on a server at the client’s site, or in a cloud instance. However, they also enjoy steady recurring revenue through their support package, with an average annual contract size of $1,600.
Their service contracts are auto renewed on an annual basis, with this system having been in place for over 25 years.
2. Strong Customer Loyalty. Their product pricing is below market and inflation trends, which, along with the quality of their service, has given them an incredibly loyal client base. Most of their current customers have been with the brand for years, with their average client having been with the brand for 3 decades.
3. Marketing Opportunities. The brand’s current marketing campaign consists of Google Ads with keywords, social media marketing, SEO, and an email campaign that targets current customers and prospects with newsletters and e-blasts. Their SEO plan includes a blog they post for monthly.
Their marketing campaign has room for improvement, and a savvy buyer could rapidly scale the brand by investing in the right advertising strategies.
Operations
While current ownership has worked 60+ hours per week in the past during product launch or release, their workload now sits at around 30 hours. Their key tasks consist of overseeing the brand’s operations and departments, handling business growth and development, and leading product innovation and development.
The company also has a team of full and part-time workers in the following positions:
• 1 Part-Time Accountant
• 1 Full-Time Support Worker
• 1 Part-Time Support Worker
• 3 Full-Time Development Workers
• 2 Full-Time Customer Success/Trainers
• 1 Full-Time Technical Support Agent
The brand’s marketing is handled by a third-party marketing consultant.
Scale Opportunities
With the release of their SaaS product, the brand is in a prime position to scale. A buyer could start by converting past and existing clients to the new model, and, from there, improve the company’s marketing campaign to attract a new wave of fresh customers.
They could invest in stronger email marketing campaigns, ramp up their marketing budget to close sales, and attend relevant trade shows. From there, they could outreach to dental service organizations (DSOs) to better target their core audience. A buyer should build out the brand’s sales team, as it has steadily shrunk through retirements.
Finally, the new owner could also easily increase profits by increasing the pricing of their legacy and current product line.
Conclusion
This seasoned acquisition has been trusted by many of their clients for decades, and for good reason. Their services are highly valuable for those in the dental market, and with the brand having finished their tradition to the new SaaS model, they are in an excellent position to expand their client base.
