Dental Practice Purchase: Before you buy
Deciding where to buy, how to handle it, and what kind of dental practice to purchase is a very important step in the career of a dentist. There are many essential decisions to make and key factors to examine as you search for the perfect dental practice that meets all of your needs.
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Dentists must not rush into a purchase, and need to manage their expectations, understanding that the process will take some time. There is no need to hurry through important steps and be impatient. Buying the right dental practice for you matters more than closing a deal quickly when the first opportunity presents itself.
Find the Best Location
Decide on where you would like to live. You’ll want to be a big part of this community, so you’ll need to make sure it’s a good fit. Establishing a connection with the locals will help your business succeed. And ensuring a shorter commute could also pay off. Avoid a long commute and you’ll have the opportunity to spend that time with friends and family. That’s not a bad trade off.
Establish yourself amongst people you can relate to and people you can enjoy. Your practice and your interpersonal life will reap the benefit. Do you like the suburbs, or do you want to live in more of a rural community? Consider where your competition is. This is a major indicator of your likelihood of running a successful dental practice. Will your spouse be able to find work? Will your kids end up in a school district that will nurture them and grant you piece of mind?
Determine the Ideal Practice for You
Consider: size and type, Are you interested in specialized dentistry practice, or a generalized dental practice. Is there room for your particular niche? What is your working schedule? You’ll want to set in place a business plan that is forward-thinking and detailed.
Get the Proposed Business Appraised
Have the business appraised with the help of a certified public accountant or valuation specialist. A professional with experience in this industry is preferable. This way you’ll gain a better perspective.
Enlist Support
Trying to save money by being completely self-sufficient is a poor decision when you plan on purchasing a dental practice. You’ll have to rely on the expertise of others as your patrons will have to rely on you. In the long-run, investing in advisors will save you a lot of trouble. Here are some people you might want to have on your side:
- A tax accountant experienced in aiding dental care practices and other small businesses on remaining tax compliant and reducing tax burdens. You will want a Certified public accountant who can help you establish tax-saving strategies. Seek a cpa to advise you on how to structure your business entity (LLC, PLLC, Sole Proprietorship, S-Corp, C-Crop).
- A Bookkeeper who is experienced in a bookkeeping system like Quickbooks. A certified Quickbooks ProAdvisor is a title bestowed upon a bookkeeper which says the person is certified by the manufacturer of Quickbooks (Intuit Corporation) as knowledgeable with the bookkeeping platform.
- A legal professional to review documents and legally protect your interests.
- A consultant also may well prove invaluable in helping you save money and avoid headaches.
- From the start, establish a relationship with a bank. Getting prequalified informs how much you can afford when putting in an offer.
- Your insurance needs will increase ten-fold once you’re a business owner. An insurance representative will assess the value of your business and evaluate risk to see how much coverage you’ll be needing.
- It is wise to seek advice from a mentor that has experienced similar circumstance to those you’ll face.
- A marketing expert-preferably someone with knowledge of internet marketing.
