You’ve made the decision to purchase a dental practice—congratulations! This is an exciting time when you will finally have the opportunity to put all your years of education and training to good use. So let’s get started.
By now, you have zeroed in on the geographic area for your practice and have a sense of the practice size that is right for you. Do you want to purchase a “drill and fill” practice, or a practice with added specialization? Just remember, if you buy a practice that includes sophisticated services you don’t plan to offer, you will stand a greater chance of patient attrition.
Be aware of the competition in the surrounding area, especially if you offer specialty services. You may not want to open a practice in pediatric dentistry if there is a strong pediatric dental practice around the corner. What is the potential to build your practice based on the current demographics of the area as well as any plans for growth in the 10-mile radius of your targeted search? Look at homes and how far apart they are from one another. What is the commercial district like? Are there plans for a new housing development? Will it attract young families or seniors? What are the traffic patterns? This is where a good healthcare real estate professional would come into play and be extremely beneficial.
Along with the real estate professional, a trustworthy team of professional advisors will help ensure that no detail about the purchase will be missed.
Line Up Your Team of Advisors
Once you have identified the location, you’ll want to continue to put your team in place. The team should include a dental accountant, an attorney with expertise in dental/medical practices, a small business banking specialist and a practice consultant to help facilitate the transition. Ask these professionals for the names of dental brokers. Your broker will know the selling market and be instrumental in managing the transaction. They will help you identify practices that are ripe for sale within the area you have identified and be able to provide information including:
- Type of patients
- Type of dentistry
- Patient base
You will also want to work with an insurance agent who will help you get your business insurance, life, and disability policies in place. These policies take some time, so make sure you plan in advance to avoid financing delays.
Now that you have your dental license in hand (you do, right?), you are ready to proceed.
Download our free e-book, "Guide to Buying a Dental Practice," for more information. Topics include:
- Financing the Purchase
- Due Diligence
- Asset Allocation
- After the Sale
This guide outlines the steps you need to take and the resources you need to put you in the best position to buy a dental practice. The dental accounting team at Goldin, Peiser & Peiser will monitor IRS guidance that provides clarification around the TCJA.