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
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
As you probably have seen, there are not a lot of dental practice’s for sale. The seller’s market continues for dental practices. The great practices get snatched up literally before they hit the market. The practices that need a lot of work are out there, but it’s difficult to assess what you are getting. Here are a few tips to evaluate a practice that may not be...Read More
Often times, a potential buyer of an existing veterinary practice will simply take on the existing lease that the seller had with the landlord. The seller will do what’s called a lease assignment and assign the lease over to the buyer. But, did you know that there may be a chance you can renegotiate terms in the lease even though there may be a few years left to the end of the term?
When...Read More
I meet over 100 veterinarians each year who are looking to buy an existing veterinary practice. Of those, I would estimate that 40% have not done any research on what is involved in buying a practice. Of the other 60%, very few of them know the beginning to end process of buying a practice. They don’t teach you how to buy a practice in veterinary school, so we don’t expect you to know...Read More
I meet over 100 veterinarians each year who are looking to buy an existing veterinary practice. Of those, I would estimate that 40% have not done any research on what is involved in buying a practice. Of the other 60%, very few of them know the beginning to end process of buying a practice. They don’t teach you how to buy a practice in veterinary school, so we don’t expect you to know...Read More
When buying a dental practice, there are several essential reports you absolutely must have in order to evaluate the practice. The reports are as follows:
Minimum of 3 years Tax Returns and Financial Statements
Minimum of most recent 3 years annual productions, collections, and adjustments
Most recent production by procedure code report
Fee Schedule
Patient demographic information...Read More
A couple of years ago, in 2010, banks that financed buyers in a practice transition, tightened their credit requirements. They began requiring dentists to be out of school for at least 2 years, they would only finance up to 80% of the last 12 months’ production or they would require the seller to take a note back for part of the loan. In addition, they would absolutely not finance a new...Read More
With so few practices on the market, I often get the question “Should I just start a new dental practice?” Since I am a commercial real estate broker specializing in helping dentists find new locations as well as being a practice broker, I can give you an educated answer. That answer is “it depends”.
Here are 10 questions to ask yourself to see if you are a candidate to do a scratch start...Read More
I meet over 150 dentists each year who are looking to buy an existing dental practice. Of those, I would estimate that 30% have done any research on what is involved in buying a practice. Of those 30%, none of them know the beginning to end process of buying a practice. While I can’t cover all the steps in this article, I can give you some guidance on where to start and what steps to take...Read More
