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July 21, 2024, 4:34 am

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Buying a dental practice is a big decision, and, like any other big decision in your life or career, you want to make sure that you're handling it properly, taking the right factors into consideration and making sure that nothing is overlooked. Are there other dentists in the area? Before you even start shopping around, it's key to think through what you'll need and expect. Ensuring that you buy a practice that is compatible with your core philosophy and values is critical, as is the need to consider the practice location and equipment needed for your transition. Use this as a starting point for practice valuation discussions, and make sure to talk with your accountant to help navigate this decision. At a minimum, the items listed below should be reviewed by a professional who understands the economics and practicalities of a dental practice acquisition. It's best to consult with a dental practice consultant to ensure you make sure you follow through with the right processes so that you can have a successful dental practice transition. Here are some questions to consider asking.

Questions To Ask When Buying Dental Practice For Sale

In addition to looking at the size, condition, and aesthetic of the property, you should also consider whether or not you'll have to make tenant improvements or undergo remodeling to change the office layout. Your neighbor's aunt's father-in-law's second cousin may be a fine general CPA, but you need a skilled dental CPA who works primarily, if not exclusively, with dentists. Here are questions to ask when buying a dental practice. See: No Surprises: How to Prepare for a Smooth Practice Transition and download our free sample Integration Plan. In the easiest scenario, the current wait time is more than eight weeks and the practice is losing patients due to inadequate coverage, meaning there should be no issue with finding enough patients for multiple full-time doctors.

Questions To Ask When Buying Dental Practice License

Understanding what you want to accomplish — whether it's offering a wider array of services or hitting a higher revenue — can help you narrow your search and prioritize the right opportunities. The cash flow provided by the receivables can be extremely helpful. Who will be working in the system and how will you train them? You must be sincere and listen carefully so you are ready to ask follow-up questions when indicated and to make it a focused discussion, not like an interview required so you can write a college paper or like a drill sergeant barking commands. Contact us online and have a Henry Schein Professional Practice Transitions expert help take the stress and confusion out of dental practice transitions. Some suggestions might include: If the layout of the dental practice is particularly effective, you may want to ask if the dentist was involved in the layout and design. Also, think about the kind of dentistry you want to run and the income you want to make. What short-term and long-term changes can I expect to see?

Questions To Ask When Buying Dental Practice Watertown Wi

He or she also has a patient base that will be left behind, and no one wants to let them down. You can estimate the value of a practice — and figure out how reasonable the seller's price is — by looking at the practice's revenue, Stalcup explained. Is the seller willing to be a resource for you? Effective communication with your banker throughout this process is critical. A better measure of a practice's success is active patients, or people who are scheduled out 12 months into the future (for a teeth cleaning, for example) and have appointments dating 12 months back, Doublestein said. File my tax returns? Although the accountant conducting his/her due diligence should see all liabilities upon reviewing the balance sheet, it is still important to order a lien search. Replacing medical equipment can be expensive. The seller may own the building and not want to include that in the deal. These are two very different transactions. Perhaps divide questions into broad categories that appear positive while you delve into the "meat and potatoes" so to speak of the dental practice. Be wary if the seller has not been completely transparent and answered all of your questions in a satisfactory manner.

Questions To Ask When Buying Dental Practice Online

You also want to make sure that the existing equipment is up to industry standards. What will happen to my staff? Visit the website at. In general, if treatment wait time is less than four weeks, the practice is already adequately staffed and the owner should commit to reducing their own hours if bringing in a new full-time dentist. "We anticipated losing a percentage of patients, " he said, "but when we looked at the numbers we figured out we could sustain those losses. Numbers are black and white, but it's the gray area that will make or break your transition. The advantage to this option is that the seller will have a vested interest in your success. Although non-economic considerations are important, such as how the physical structure and office environment look and feel, economic considerations make a difference in the success or failure of the dental practice you purchase. If fees go up right after a new dentist joins, either as an associate or an owner, that dentist may be seen as "greedy. "

Questions To Ask When Buying Dental Practice In The United States

Doing any type of construction takes time and money, so it's important to ensure you have enough cash and resources to make the changes you want. Things that will be covered later in due diligence. That's great news; a star employee is worth his or her weight in gold. For example: Understanding how the office runs may uncover other opportunities for you to add value, especially if you have relevant experience – just be aware that it may take some time to make big changes in current policies, particularly if the staff enjoys a more 'fluid' environment. No doubt, buying a dental practice is stressful. How big is your list of active buyers currently? As an example, if the seller's dental practice has $100, 000 in annual revenue and $2, 000 in inventory, it's worth roughly $62, 000 to $72, 000. She has been an active volunteer with Junior Achievement and the national program "Teach Kids to Save Day. Additionally, patient retention should be in the mid-to-high 90s range when the transition is handled by experts.

Questions To Ask When Buying Dental Practice Without

At Professional Transition Strategies (PTS), we have successfully guided hundreds of dentists through the process of selling and buying a dental practice. Plus, a professional transition consultant can help you create a plan, organize your documentation, and negotiate terms with the seller. After all, they will be tied to those policies for their foreseeable future. What features are most important to you? "The dental hygiene program is the economic engine of the dental practice, " Doublestein said. You don't need to have perfect credit, nor do you need to submit extensive paperwork to apply. The Types of Dental Practice Sales Have Changed Over Time. Due diligence — the time when you and your lawyer, accountant, and broker or coach get serious about looking under the hood of the practice — will be extremely important, and will help you know what to negotiate as the sale moves forward.

What you want to know is what worked and what didn't back when they were growing! This factor is extremely important from a tax planning and risk management standpoint. But what about some of the less obvious things that can make or break a situation?

You can deal with those things later. What is your preferred way for me to initiate contact? We have the experience to help set up new business ventures as well as structuring the purchase of an existing business. If so, you may want to ask how much input they had and is the entire layout of the dentist's design. In reality, however, the lawyer is frequently not brought in until after the deal is made and the buyer and seller have either shaken hands or signed a letter of intent (prepared, in many cases, by the broker). Purchasing a practice will be one of the biggest decisions of your life. Look at how much time is allotted for different procedures and see where you might add value. Listen to what isn't being — what is conveniently left out or glossed over. And Philip M. Bogart, Esq. How many write-offs are there annually?

You will need to make a decision on whether or not your skill extends to treating children or if you will refer child patients to a pediatric specialist. Remember what I said about emotion being a big part of this purchase? For example, how will the selling dentist transfer the goodwill to the buyer? First, the old adage holds true: location. Paige regularly writes for a number of B2B industry leaders, including fintech companies, small business lenders, and business credit resource sites. Charts where the patient has not had a visit in the last 18 months should be excluded since it is questionable if the individual is still a patient—and even if they are, they hold little value because of their infrequent visits. Find out whether or not you have similar specialties, leadership styles, practice management systems, and philosophies on patient care. Of course, one of the benefits of purchasing an established practice is that you are purchasing an established income stream. This one is more targeted, less open-ended. A production and collections report and a breakdown by each dentist and hygienist.

"If dentists are business-minded and they like a challenge, " Doublestein said, "they might want to take a practice that's not doing so well and ramp things up. There is more to a well-run practice than simply how much is collected each month. If patients pay based upon a treatment plan (e. g., orthodontic contracts), will there be an adjustment to the price based upon services that have been prepaid? "We needed a bigger space for our current practice, " he said, "but we also wanted to expand our patient base and look ahead to future growth. "

Those who choose to launch a new practice should be prepared to endure a couple of lean years before it is fully established and generating significant revenue. Having a solid base of patients to exam right out of the gate will give you the opportunity to present dentistry. Are there traditional buyers for my practice? Can you do it yourself or will you need to hire someone from their company or an independent IT contractor to do it? Before you meet with the seller or get on a call with the broker, write down your questions.

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