Making the leap into dental practice ownership is an exciting step in your dental career. Buying a practice is also one of the most important financial decisions you will make in your lifetime, so you want to choose your new business carefully. If you’re wondering what to look for in a dental practice, here are a few aspects to consider:
There is a difference between the price and the value of a dental practice. You may find a practice listed at a great price, but it may not necessarily be a great practice. An accurate practice valuation can guide your decisions when purchasing a practice to ensure you are receiving a quality practice for a fair price.
Once you find a practice you are interested in, you should visit the site and tour the facility. You will want to evaluate the general condition of the office and equipment. At a later point, you should receive a formal equipment inspection.
The practice should be conveniently located for you, your patients and employees. The space should also match your growth plans, so check if there is the possibility of expanding into the existing or adjacent space.
Additionally, you will want to look for dental practices with solid finances, so thorough due diligence of the practice’s finances is a crucial step. Look at elements such as employee salaries, aged accounts receivables and the property lease agreement.
A practice’s patient demographics are an important component to look for in a dental practice. Do patients consistently come in for regular prophy? How many patients have insurance? How many new patients does the practice see each month? These factors may all play into your decision.
As you consider different practices, you should find out why the current owner has decided to sell. Selling in order to retire is a completely different scenario than selling due to financial distress, dental licensing problems or the death of the owner.
Overall, be sure to choose a dental practice that matches your skill set, personality, budget and growth plans. Menlo Dental Transitions has many great practices available for sale that may be exactly what you’re looking for. While we only represent sellers in transitions, we are happy to connect with you and provide resources to facilitate a smooth transition.