Buying a Dental Practice — Should You?
Making the leap to purchase a dental practice of your own is an exciting venture. If you have been thinking about taking this next step since dental school, there are a few things you must consider. It is helpful to merge with the appropriate team, who will assist you with this life-changing endeavor.
When you partner with us at AFTCO Southwest, you are off to a great start. Founded in 1968, we are the oldest and largest dental practice transition consulting network in the U.S. We assisted countless dentists throughout the years, helping them achieve their dream of buying a dental practice.
Once you make your decision, there are a lot of things to consider. The following list is just a snapshot of everything you will need to examine when selecting the right dental practice to meet your wants and needs:
- Financial Stability: It is necessary to know how well the dental practice was doing financially. Research accounts receivable, the lease agreement, and employee salaries. All these items are crucial to your final decision. A practice in a good financial state versus your ability to overcome a bad financial situation must be considered heavily.
- Patient and Practice Characteristics: Go over the fine details of the office, this will help you analyze the types of patients served by the dental practice. For instance, you will want to look at the demographics, is there a steady flow of new patients, how many have dental insurance, do the majority come in for routine visits consistently.
- Price vs. Value: These are two very different things. If you want to acquire a practice at a discounted price, it doesn’t guarantee you will get a good practice. But, if you get exceptional value in a dental practice at an affordable rate, that is much different. Our experts at AFTCO can help you understand the what it means to get a reasonable price for a great value, so you can make the right purchasing decision.
- Reason for the Sale: Find out why the practice is up for grabs. This is a prime factor to consider. Is it owned by a retiring dentist? Did the owner pass away? Were there licensing issues or financial problems with the practice?
- The Condition of Equipment and Facility: First, you should visit the facility you are considering. Inspect the equipment and overall condition of the space. Also, make sure the office will meet your needs now and in the future. Plan for potential growth in the next few years. Look for ways to expand the property or adjacent space. Convenience is important, so location is always something to factor into the equation. You want your practice to be easy for patients and staff to access.
Your Practice Transition Consultant
Going into business for yourself is never something to take lightly. Proceeding along may lead to some very expensive errors. If you are a recent dental school graduate, leaving another office, or a retiring dentist, you may only get one chance to make this work, therefore success matters. Contact AFTCO today to learn more about how we can help you buy the right dental practice for your success.