There are a few things you should be wary of when buying a dental practice. These are not necessarily deal breakers, but things to bring up and analyze with your team when you are buying a practice.
1. ALL THE TREATMENT IS DONE
You can run an unscheduled or untreated treatment plan report that should give you an idea of treatment on the books. You can also look at the number of true active...Read More
So, you found a practice you like and it has a price tag of $500,000. How do you know the dental practice is valued correctly? A short answer is that the price, or value, is what a willing, knowledgeable and unpressured buyer along with a willing, knowledgeable and unpressured seller would be willing to exchange for a property or asset.
I can probably write a short, very boring book, on...Read More
There are a number of things to look out for when buying a dental practice. If you’re not careful, you could end up with a bag of tricks. Here are some of the top pitfalls to avoid when buying a practice:
1. Not understanding the numbers. Be sure and know what normal dental expenses are and what may be extraneous.
2. Assume the staff are all on board and will be staying with the...Read More
Caveat Emptor is not a garnish at your local Italian restaurant. As you go through the steps in buying a practice, you should be cautious while going through due diligence. Due diligence is the thorough, in-depth analysis of the practice charts, equipment, systems, computers, and everything else in the practice. If you missed our buyers’ seminar last month, you would have received...Read More
I get the question a lot, “do you think I am ready to buy or start a new practice?” I’m probably the wrong person to ask as I’m somewhat of a serial entrepreneur. I tend to live by the quote “Fortune favors the Bold”. Maybe I can answer better by giving you a few real-life case studies.
Case Study #1 – I helped this young dentist locate a practice...Read More
