Buying a dental practice is an exciting proposition and a very big step in your dental career. If you’re considering buying a dental practice, you want to make sure you know what to look for. It’s also a good idea to partner with the right team to help you with your search.
When you work with us at Menlo Dental Transitions, you’re off to a good start. We have helped many dentists over the years with buying a dental practice. As you can imagine, there is a lot to consider. Here are just a few things you’ll want to think about when you’re looking for the right practice for you:
Price vs. Value:
There is a marked difference between the price and the value of a dental practice. If you are buying a dental practice at a great price, it does not necessarily mean you are getting a great practice. However, if you get great value in a practice for a reasonable price, then that’s another story. Our experts at Menlo Dental Transitions can help you decipher between getting a great price for the best value so you can make the right decision when purchasing your practice.
Condition of Equipment and Facility:
The first step, of course, is making a visit to the site and taking a tour of the facility. At this time, you can check out the equipment and the general condition of the office. You will also want to ensure that the facility will meet your needs as you factor in your potential growth plan for the next five to 10 years. This includes checking for expansion capabilities in the existing or adjacent space. Location can also be an issue. You will want to consider the convenience of the site for patients and employees.
The financial state of a practice is certainly important. Doing due diligence and looking at such things as employee salaries, aged accounts receivables, and the property lease agreement are critical to your decision. A practice with solid financials vs. your ability to come out of an unfavorable financial situation should be heavily considered.
Patient and Practice Characteristics:
Looking at the details of the practice, it is helpful to analyze the kinds of patients that frequent the practice. For example, you will want to know if there are patients who consistently come in for their regular prophy. You will also want to examine the number of insurance patients, the frequency of new patients, and the practice’s patient demographics.
Reason for Sale:
Understanding why a practice is for sale is definitely a factor you will want to consider. Is it due to retirement, financial distress, dental licensing problems, or death of the owner?
Your Transition Advisor:
Buying a dental practice is a decision you don’t want to take lightly. Going it alone can lead to costly mistakes. Whether you are just out of dental school or you are coming from another practice, you really only have one shot to get it right. Call us at Menlo Dental Transitions to learn more. We can answer your questions and help you find just the right practice for you.