Buying a dental practice can be one of the boldest moves. However, like with any other business, many will be worried due to the uncertainties of following a new path. The truth is this idea can be a bit strenuous and frustrating when you don’t have the correct information at hand.
But with these eight tips for purchasing a dental practice, you’re good to go.
Tip #1: Keep the Dental Supplies
The first tip for purchasing a dental practice is to keep dental supplies. Dentistry involves many pieces of equipment to help run the day-to-day activities. Dental suppliers provide chairs, handpieces, lasers, sterilization essentials, X-ray machines, extraoral cameras and mirrors, delivery systems, etc.
If you intend to purchase a dental practice, it’d be best to incorporate the value of the equipment available in the buying price. Nonetheless, this should be after a thorough examination to determine if they’re of excellent quality before adopting them.
Some buyers sometimes keep only a few useful pieces and neglect others because they cannot purchase them or are of poor quality.
Tip #2: Get a Support System
Purchasing a dental practice is not as complicated as it sounds, but interested buyers should face it with a strategy. For instance, you should have a reliable support system of qualified and experienced professionals. These are the ones to guide, advise, and help you maneuver across different issues and milestones in the business.
They can include an attorney for legal matters, an accountant for financial management, and a consultant for general advice. Other experts may consist of someone who has been or is in the business, financial advisors, or brokers. Ensure to choose your team wisely by evaluating their qualifications, referrals, and performance for the most incredible results.
Tip #3: Have a Budget
Like any other investment, you must have a well-outlined budget to walk you through purchasing a dental practice. This will help you identify what kind of practice you want to acquire regarding size, activities, financial plans, and goals.
Making the first step without a reliable budget can quickly get you into trouble, like excessive borrowing, loss, and other financial frustrations. Hence, let a financial advisor help you make a simple budget a few months before the purchase and ensure you stick to it.
Tip #4: Know the History
When buying a dental practice, it’s evident that someone else has been therefore before you. Regardless of how trustworthy they appear when describing the business’ history, it’s only best to find out yourself.
Even long before you settle on a particular spot, research its previous performances (preferably from 2-3 years ago), like profits, losses, tax returns, expenses, and revenues. You may also need to know more about the general reputation of the business not to mess with yourself.
Tip #5: Buy from a Broker
Many successful dental practitioners advocate purchasing a practice from a broker rather than an owner. The former idea makes the purchase process quicker, more authentic, and more professional.
Often, business owners haven’t decided on selling yet, even after putting up an “on-sale” poster for weeks. That may translate to a back-and-forth before you can sign the agreement. Conversely, brokers are more focused on the business and will work on getting the purchase settled sooner and smoothly- for their reputation.
Tip #6: Be Physically Available
The idea that “it’s just a dental practice,” you can purchase one from a distance and fully involve yourself after the deal closes should never cross your mind. Physical availability significantly matters because you can directly evaluate what you’re getting into.
Therefore, you should spare time from your usual schedule to visit the facility. Some important things to observe may include cash flow, general management, patient flow, inquiries, and customer care.
Tip #7: Take Locations and Demographics Seriously
The facility’s location is a crucial consideration when purchasing a dental practice. It has to be favourable regarding accessibility, customer flow, weather issues, competition rate, and infrastructure.
Regarding demographics, aspiring dental practitioners should evaluate the number of dentists in the area, potential residence, population, and other statistics. After critically evaluating these two, you can make more informed decisions in advance.
Tip #8: Consider Retaining the Existing Staff
Buyers often opt to make everything new when purchasing a business, including tagging along their staff. What if you considered retaining the existing ones for a dental practice? They are more familiar with the practices, local trends and regulations, and the facility in general.
It, however, depends on their qualifications, affordability, and your preferences. Maybe you can make it a subject for discussion and negotiation with the seller and watch how beneficial it becomes. Simultaneously, don’t be afraid to bring a few of your own or terminate the existing when necessary.
Purchasing a dental practice can be devastating, but following the best tips will make you more likely to beat all the odds. Hopefully, they’ll be helpful as you strive to make this rewarding investment. Most importantly, don’t be afraid to bargain your offer- it all takes confidence, preparedness, and some financial knowledge.
