Buying a Practice

Choosing Between Buying an Existing Practice or Doing a New Build

By Corey Young, Practice Transition Advisor

Choosing between buying an existing practice and doing a start-up practice can be one of the biggest decisions of your life. Here are four considerations and two suggestions for when you are contemplating.

The four considerations:

Market Saturation – How many veterinarians are practicing in the area you are considering? Hardly any? One on every corner? Somewhere in between? Establishing traction in a high competition area will require a much higher marketing budget. Do you know your marketing budget? Do you have a marketing plan?

Available Practices for Sale – How many practices are for sale in the area you are considering? Do those practices have a broker representing them? Broker representation usually equates to well-substantiated pricing and a defined plan for acquisition. For-sale-by-owner practices can be more of a wild card.

Population Demographics – If you are considering an area for a new build, will the demographics of the area you are considering support your business plan?

Personal Financial Situation – Do you have the financial reserves to weather a start-up? While there are pros and cons to both routes, buying an established practice certainly generates more initial cash flow.

The two suggestions:

Get Help – This will be one of the biggest decisions of your life, whichever route you take. There are some truly skilled and experienced professionals out there that will help guide you through this process in an efficient manner and allow you to minimize risk while seizing the opportunity.

If You Can Produce, Get Moving – Are you a high producer? Can you manage and lead? Can you practice great veterinary medicine without someone looking over your shoulder? If you answered yes to these questions, what are you waiting for?

Choosing between Buying an Existing Practice Or Doing a New Build

By Corey Young, DDS, MBA

Choosing between buying an existing practice and doing a start-up practice can be one of the biggest decisions of your life. Here are four considerations and two suggestions for when you are contemplating.

The four considerations:

Market Saturation – How many dentists are practicing in the area you are considering? Hardly any? One on every corner? Somewhere in between? Establishing traction in a high competition area will require a much higher marketing budget. Do you know your marketing budget? Do you have a marketing plan?

Available Practices for Sale – How many practices are for sale in the area you are considering? Do those practices have a broker representing them? Broker representation usually equates to well-substantiated pricing and a defined plan for acquisition. For-sale-by-owner practices can be more of a wild card.

Population Demographics – If you are considering an area for a new build, will the demographics of the area you are considering support your business plan?

Personal Financial Situation – Do you have the financial reserves to weather a start-up? While there are pros and cons to both routes, buying an established practice certainly generates more initial cash flow.

The two suggestions:

Get Help – This will be one of the biggest decisions of your life, whichever route you take. There are some truly skilled and experienced professionals out there that will help guide you through this process in an efficient manner and allow you to minimize risk while seizing the opportunity.

If You Can Produce, Get Moving – Are you a high producer? Can you manage and lead? Can you do great dentistry without someone looking over your shoulder? If you answered yes to these questions, what are you waiting for?

Attend Technology In Your Practice: What is the Best Return on Your Investment?

Want to Purchase a Practice?

By Megan Urban, Practice Transition Advisor

Want to purchase a dental practice? Here is a basic starting To-Do List to get you going!

– Where do you want to practice and where will you and your family be happy?

– Get your last 3 years of personal tax returns together.

– Gather your debt details: student loan, credit card, mortgage, etc.

– Start to look at your current production, or if you are in public health, monitor your procedure frequency report.

Talk with a transition specialist that can guide you through the process. They will look at some or all the following items in detail with you:

– Select a dental-specific attorney, bank, and CPA.

– Assist you to understand details of the practice, such as active patient count, expenses, insurance participation, recare, procedures completed and those referred out, potential marketing, cash flow, and due diligence in general.

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