St. Louis dentist buys the practice she envisioned — and triples its value.

When Victoria Daugherty, D.D.S., bought her dental practice in 2022, breaking revenue records was not the first thing on her mind. She was more interested in finding a small, manageable office where she could practice dentistry on her own terms.

In Kirkwood, Missouri, she found just that — a modest practice ready for its next chapter. Three years later, its value has tripled.

Rethinking her career path.

Owning a practice hadn’t always been part of Dr. Daugherty’s plan. “It seemed like such a big responsibility, and I worried about the extra burden and time commitment,” she recalled.

Instead, she spent the first 15 years of her career as an associate dentist at a large St. Louis dental anesthesia center. Two Fridays a month, she practiced in a local hospital, attending to the dental needs of patients with complex medical needs.

As time went on, she began to dream about what her own practice might look like. Friends who owned practices encouraged her to go out on her own. “I started to get a wandering eye,” she admitted. “My children were three and five at the time, and I decided it was time for a change.”

Taking the leap.

As her search began, Dr. Daugherty knew she wanted to purchase an established dental office. “Everyone told me to buy a million-dollar practice, but that didn’t make sense for me. I wanted one that wasn’t reaching its full potential — one I knew I could grow,” she said.

Her search led her to Kirkwood, where she found a small, private office with one retiring dentist, two hygienists and a front desk staffer. The price was more affordable than many, but the space needed substantial technological upgrades.

“I knew I would need to update the heart, lungs and brain of the practice,” Dr. Daugherty said. “But then I could operate it my way.”

She was sold. All she needed was a way to finance the purchase.

Enter Commerce Bank.

Buying a lower-revenue practice and requesting a substantial loan for upgrades can make lenders nervous. Dr. Daugherty approached three banks, including Commerce, with her plan.

“As a female dentist, I got a lot of mansplaining from two of the banks,” she recalled. In contrast, the small business banker from Commerce — who had experience working with dentists — took a different approach.

“She was direct, efficient and asked all the right questions,” Dr. Daugherty said. “When the practice’s financial numbers didn’t align neatly with the size of the loan I needed, she told me how to present my case — and then she went to bat for me.”

Commerce not only approved her practice loan, they also wrapped an equipment loan into the package. In addition to offering the best rate, they also extended a line of credit for operating expenses.

“My banker stayed in constant contact, and I never had to chase her for updates,” Dr. Daugherty said. “She made me feel like she was as invested in my success as I was.”

Starting fresh.

Once the deal closed in March 2022, Dr. Daugherty moved quickly to re-engineer the practice. She upgraded equipment link opens to a Commerce page, digitized patient intake forms and records, automated insurance verification and streamlined billing.

To simplify payment processing, Commerce provided merchant services link opens to a Commerce page and credit card capabilities.

“All these changes help us manage cash flow link opens to a Commerce page and cut down the time we spend on paperwork and chasing payments,” she said.

The office team — including a new fourth staff member — was completely on board, she added. “We set goals and worked together. Everyone felt like they had more purpose.”

By the end of her first full year, the practice had doubled its revenue.

Insurance decisions.

Early on, Dr. Daugherty made another bold decision — gradually leaving all 12 of the practice’s in-network insurance plans.

“When you’re in-network, you may only get reimbursed for 55% of your fees,” she explained. “So, you basically have to complete two crowns to get paid for one. That creates more stress and the need for more patients in the chair.”

“By going out of network, we could charge our full fee and see fewer patients without losing revenue,” she explained. An automated insurance verification system helps staff determine what patients will owe prior to their visit.

“The transition was nerve-wracking, and there has been some attrition as some patients moved to in-network providers,” she said. “But long-term, it is worth it. Our team is happier and less overworked, and we give more time to patients, who can feel that difference.

Success on her terms.

Since cutting the “in-network” insurance cord, the dental practice now averages 1,000 active patients a year, down from 1,500 under the prior owner. Meanwhile, the practice’s value has tripled.

Dr. Daugherty attributes her success to a combination of operational changes, an engaged, motivated staff and expanded services — including sleep apnea treatment, restorative and cosmetic dentistry, clear aligners and more. She also credits the strong financial foundation Commerce helped her establish.

“I’m not looking to expand or add another dentist,” she added. “We’re a small team, and I like it that way. Lower overhead, less stress and more time to focus on the kind of care we want to provide.”

Her advice to other dentists considering owning their own practice? “Find a lender who listens and fights for you. For me, that was Commerce Bank link opens to a Commerce page. They helped make this possible.”