SBA Pre-Qualified Dental Marketing Firm | SaaS Tools + SEM, SMO & Web Development for Dentists | No Ad Spend | 59% Net Margins | Semi-Absentee Owner
Deal Pipe® presents a Dental Marketing Firm that has strove to keep dentists smiling since their launch in 2017. They offer a Dental Website and Marketing platform built specifically with dental practices in mind, with their services including staples such as Website Management, Hosting, SEO, Paid Ad Management, and Social Media Management. They are operating on pure word of mouth alone, with no paid advertising used to drive traffic, which is low hanging fruit for an enterprising entrepreneur to come in and create a smart Sales & Marketing plan to further grow the business … or a new owner could keep the same semi-absentee owner profile as adopted by the current owner and just focus on organic traffic only.
Pricing runs from $99 to $1,199 depending on which package the dental office chooses, with their Monthly Recurring Revenue (MRR) landing at $872.30/client. They also offer a custom package with multi-location discounts and pricing. Out of the packages offered, the highest tier is their most popular as it offers a complete marketing solution for their clients’ practices.
The business operates on significant margins and is seeing tremendous growth. As of today, they see 59% Net Margins and are realizing 63% YoY Net Profit Growth. They see little seasonality throughout the year, outside of a slight decrease between the end of fall and an increase in the new year due to many offices taking time off during the holidays.
Business Broker Takeaways
1. Proven System. The brand’s proven and highly intuitive dental marketing system is suited for dental offices’ front offices, serving as both a marketing and productivity solution. This proven system has given them a minimal churn rate of 3 to 4%, with a strong, dedicated client base and high search rankings. The business operates like a Software-as-a-Service (SaaS) platform.
Their typical client is a smaller practice with 1 to 2 locations. This client is based in a competitive market but lacks the in-house expertise to get the new patients they need to succeed. They then come to the brand looking for assistance and find it through their complete Advanced Marketing Solution.
2. Smooth Operations. Over the years, the seller has crafted a system that operates very smoothly while requiring little oversight on his part. He works an average of 10 hours per week, with this time typically being spent on going through emails, strategizing, and following up on website leads. He also regularly meets with the marketing and development teams to perform reviews and assign new tasks as needed.
3. Long-Term Team. The bulk of the brand’s day-to-day operations are handled by their director of marketing, who handles direct contact with the clients and manages the company’s team of outsourced contractors. This team consists of a front-end developer, two back-end developers, a social media assistant, and a SEO & Paid Ads Consultant, all of whom work for the brand part-time.
Marketing
The company has cultivated a healthy presence for themselves in the dental industry, as shown by their strong search engine ranking for terms such as “custom dental websites” and “custom dental videos”.
Their current strategy right now revolves around SEO efforts, which includes a blog they post each month. This blog incorporates semantic keyword list that they have cultivated, fueling their organic growth further. The company also posts on social media channels for LinkedIn, Facebook, and Instagram.
Scale Opportunities
The highly organic nature of their current marketing campaign has left plenty of room for an ad-savvy buyer to scale this company.
They could attend as many dental conferences and trade shows as possible, forming valuable connections with dentists who may need their services. They could supplement this with niche paid ad campaigns or ad videos, further developing their online brand presence.
From there, a buyer could take advantage of this fresh wave of interest by releasing more custom products for clients. Not only would these additional services appeal to new clients, but they could also upsell them to their existing consumer base, strengthening their profits and repeat client rate.
Conclusion
This acquisition offers a tried-and-true platform to a profitable niche. As the dental marketing industry is highly fragmented, many practices have been eager to find the personalized attention and service that larger companies may not offer, which this brand skillfully offers.
They have a great foundation with a loyal client base, a low churn rate, and strong SOPs in place. With new marketing strategies, the brand could see an influx of new clients looking to meet their marketing needs.
This Company is Represented by:
Deal Pipe.com
Technology, Internet & eCommerce Business Brokers
WC 3498