The Dental Boardroom

In this episode of the Dental Boardroom Podcast, host Wes Read, CPA and financial advisor at Practice CFO, is joined by Brandon Hobson and Paul for their quarterly deep dive into the stock market, global economy, and what dentists and practice owners should prepare for as 2026 approaches.The episode covers:The Federal Reserve’s rate movements and expected leadership changeWhether the current AI wave is a bubble or a true productivity revolutionThe future relevance of the traditional 60/40 investment strategyHow economic shifts impact dentists’ borrowing, practice finances, and patient spendingPractice CFO’s investment outlook and positioning for 2026A must-listen for dental entrepreneurs and investors navigating today’s unpredictable financial landscape.Key Topics & Takeaways1. Federal Reserve Update & Interest RatesCurrent Fed Funds Rate: 3.75%–4%, with another 0.25% cut expected soon.Kevin Hassett is the likely replacement for Jerome Powell in 2026   potentially a more politically influenced choice.Concerns about Fed independence rising due to political pressure.Rate cuts stimulate borrowing but risk inflation if overdone.Importance for dentists:Affects practice loans, buildouts, refinancing, and equipment financing.Impacts patient discretionary spending, especially in cosmetic dentistry.2. Stagflation Risk?Inflation appears stable around the mid-2% range.Unemployment creeping toward 4%.Risk emerges if inflation rises while unemployment increases = “stagflation.”Not yet alarming, but the rate of change is what matters.3. GDP & Economic StrengthU.S. GDP last reading (Q2): 3.8%, stronger than expected.Global GDP remains surprisingly strong despite trade tensions.Q3 & Q4 readings delayed due to government shutdown but expected to stay positive.4. AI: Bubble or Breakthrough?Big tech’s AI infrastructure spend expected to hit $3 trillion by 2028.53% of investors believe we are in an AI bubble.OpenAI & NVIDIA valuations are 30–40× revenue, compared to Walmart at 1.3×.MIT study: 95% of companies currently see no ROI from AI.Major concerns:Revenue lag vs. massive AI investmentCircular funding structures (promising investments without cash to fulfill them)Big tech taking on debt to fund AI (Meta’s off-balance-sheet financing)Parallel drawn to the dot-com era   huge innovation + huge speculative hype.5. What About the Magnificent Seven?High valuations and interconnected dependence create contagion risk.NVIDIA’s unusually high profit margins may attract new competition.Some tech (like Google, Meta) still offers strong fundamentals & cash flow.But investors should avoid blindly overweighting tech indexes.6. Is the Classic 60/40 Portfolio Back?After years of underperformance, value stocks and quality companies are regaining momentum.PracticeCFO’s positioning:Lower tech exposure (15–18% vs. S&P 35–40%)Higher weight in value, quality, and cash-flow-focused companies20–40% international stocks for diversificationAI benefits will extend to all sectors   consumer staples may monetize AI faster and cheaper than mega-tech.7. Guidance for Dentists & Practice OwnersElective dentistry depends on consumer discretionary income   market downturns may reduce patient demand for cosmetics.Rising long-term rates affect:Practice purchasesBuildoutsNew location expansionDentists should:Lock in favorable financing when possibleWatch overhead and maintain cash reservesAvoid emotional investment decisionsReassess risk tolerance if nearing retirement

In this episode of the Dental Boardroom Podcast, host Wes Read, CPA and financial advisor at Practice CFO, and Chris Marshall break down some of the most important warning signs dentists should watch out for when evaluating a dental practice for purchase. Drawing from real client cases and common deal-flow patterns, they discuss the financial, operational, and clinical red flags that often hide beneath the surface of seemingly attractive listings.Listeners will learn how to interpret declining numbers, inconsistent hygiene schedules, sudden production increases, PPO manipulations, risky seller behaviors, and gaps in patient flow. By the end of the episode, you’ll understand how to look past broker language and identify the true health or weakness of a prospective practice.Key Takeaways1. Declining Production or Collections Are a Major Red FlagIf collections or production drop year-over-year even slightly it signals deeper issues.This could mean a declining patient base, ineffective ownership, poor systems, lack of demand, or mismanagement.2. Hygiene Department Instability Signals Deeper ProblemsLarge swings in hygiene revenueInconsistent recall schedulesDeclining hygiene visitsThese typically indicate poor systems, weak re-care, or a lack of organization affecting long-term revenue.3. Sudden, Unexplained Production Increases Are Often ArtificialA seller spiking numbers in the year before the sale is a common tactic. Examples include:Over-treatmentRunning unnecessary proceduresPre-billing treatment A buyer should be cautious: inflated numbers ≠ sustainable revenue.4. PPO / Insurance Manipulation Is a Growing ConcernPractices sometimes:Drop PPOs before sellingSwitch PPO participationAdjust fee schedules to appear more profitable Understanding the insurance environment is essential to projecting true cash flow.5. Seller Behavior Tells You Almost EverythingPay attention if the seller:Wants to leave immediatelyAvoids answering questionsHas incomplete recordsShows disorganized systems These behaviors often align with financial or operational decline.

In this episode of the Dental Boardroom Podcast, host Wes Read, CPA and financial advisor at Practice CFO, and Dr. Howard Farran, Founder of Dentaltown, delve into the evolving landscape of dental ownership from the rise of private equity in dentistry to the challenges and opportunities facing today’s practitioners.They explore how cheap financing and investor enthusiasm fueled massive consolidation in the dental space over the past decade, and why the focus is now shifting from quantity to quality. As interest rates rise and capital tightens, DSOs and private equity groups are becoming more selective, prioritizing well-run, profitable practices over sheer scale.The discussion also contrasts private equity-led DSOs with those founded and guided by dentists, examining how leadership, culture, and long-term vision shape patient outcomes and professional integrity.Dr. Farran passionately defends the importance of dentist-led organizations, transparency, and long-term patient relationships, emphasizing that dentistry is a “sacred profession,” not just a business. Wes complements this view with a grounded financial perspective, offering practical advice for dentists who aspire to grow sustainably, without losing their clinical focus or personal balance.Key TakeawaysThe PE Boom and Shift: Low interest rates and abundant capital fueled a buying frenzy in dental practices, but the landscape is changing with higher borrowing costs.From Volume to Value: DSOs are now focused on high-quality operations and sustainable cash flow rather than mass acquisitions.Dentist-Led vs. Investor-Led DSOs: Dr. Farran stresses that DSOs led by clinicians, not “suits,” create better care models and stronger trust with patients.Operational Mastery First: Before expanding, dentists should perfect one successful “prototype” practice much like McDonald’s perfected its first store before scaling.Liquidity and Transparency Matter: Private equity’s lack of transparency and illiquidity pose risks; publicly traded or dentist-owned models offer more accountability.AI and Dentistry: Both see promise and potential pitfalls as AI expands into diagnostics and insurance, cautioning that technology can empower or restrict clinicians depending on who controls it.

In this episode of the Dental Boardroom Podcast, host Wes Read, CPA and financial advisor at Practice CFO, sits down with Howard Farran, founder of Dentaltown and one of the most influential thought leaders in the dental industry. Together, they explore the evolution of dentistry from emerging AI technology to the rise of DSOs, the challenges new grads face, and the skills needed to thrive in today’s rapidly shifting landscape. This episode delivers raw insights, bold perspectives, and practical lessons for dentists at every stage of their careers.Key PointsAI & the Future of DentistryAI is transforming dentistry at historic speed—comparable to the rise of the internet.Dentaltown is building AI tools to unlock insights from 10+ million dental conversations.AI won’t replace dentists but dentists who adopt AI will replace those who don’t.Example: Robotics like Yomi are enhancing implant surgery, not eliminating the surgeon.The Real DSO LandscapeNot all DSOs are massive corporate chains.The real competition for private practices? Local 4–9 location DSOs scaling smartly across small regions.These local groups win by leveraging:Shared marketingCentralized operationsBetter purchasing powerStructured systemsAdvice for Young DentistsStudent debt is real, but so are lifestyle choices that amplify it.Early career focus should be:Clinical reps and speedLearning practice systemsStrong mentorshipThe best first job is one that teaches:Business operationsFull-scope clinical carePatient flow and case acceptanceThe Competitive Edge for Private PracticePatients choose loyalty, trust, and relationships.Private practices win when they deliver:Consistency in careStable teamsReal human connectionHigh staff and doctor turnover in corporate settings creates opportunities for private offices to stand out.Know Your Numbers With the Right AdvisorA general accountant isn’t enough in dentistry.Dentists need advisors who understand:PPO strategyOverhead benchmarksPractice-specific financial planningGrowth vs. profitabilitySpecialized financial guidance is a competitive advantage.Insurance is Not the Whole MarketHalf of patients don’t have dental insurance.Present multiple treatment paths:Basic → Mid-tier → Ideal careNever assume what a patient can or can’t afford—let them choose.Who Should Listen?✔ New dentists navigating debt and career choices ✔ Private practice owners competing with DSOs ✔ Clinicians curious about AI adoption ✔ Anyone wanting unfiltered industry truth

In this episode of the Dental Boardroom Podcast, host Wes Read, CPA and financial advisor at Practice CFO, kicks off a new multi-episode series focused on the most common financial mistakes dentists make in both their personal and practice finances. After returning from an October break, Wes zeroes in on cash flow discipline, spending habits, tax inefficiencies, depreciation strategy, excess distributions, and the development of automated systems for long-term wealth.Wes explains how many dentists struggle with lifestyle inflation, unmanaged owner draws, and treating the business account like personal cash, often without understanding tax basis limitations. He highlights the “depreciation trap,” where large Section 179 write-offs paired with financed equipment purchases create short-term tax relief but long-term cash crunches. He encourages dentists to align depreciation schedules with loan terms to avoid future financial strain.Key Points:Automate savings and retirement contributionsMatch depreciation timelines with equipment loan termsAvoid treating the practice account as personal spendingMonitor tax basis before taking distributionsMaintain disciplined budgeting and lifestyle controlReinvest profits to strengthen practice efficiency and growth