Why Purchase a Dental Practice?
Purchasing a dental practice is one of the most important decisions you will make in your professional career and often unlocks the door to a considerable increase in compensation and personal freedom. Therefore, it’s crucial for you to begin preparing for practice ownership in advance, build a strong team of advisors, and have a clear understanding of the purchase process and how to evaluate potential acquisition opportunities.
Completing a practice valuation is just one of the steps involved in exploring a practice purchase. If you would like to do so, you can order free sample reports now or place an order with Dentappraisal. For all other needs outside of practice valuations, please contact us and we’d be happy to put you in touch with a member of our nationwide network of dental specialists who can help you through your exploration into practice ownership.
Why Purchase a Dental Practice?
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When it comes time to pursue practice ownership, dentists have two choices: purchase an existing practice or start their own practice from scratch. Here are several reasons many dentists chose to purchase an existing practice:
Immediate Cash Flow
The primary reason that dentists chose to purchase practices is that a healthy, established practice will immediately provide the buyer with sufficient income to cover practice overhead, the debt service associated with their practice loan, and the buyer’s personal living expense needs.
Established Patient Base
Dental equipment, carpet, paint, etc. can easily be replaced and/or upgraded. The true value of a dental practice is derived from its patient base and the recurring revenue stream generated from the practice’s existing patients.
Experienced Staff
High performing practices typically have a well-trained staff that can serve as a tremendous resource to the buyer in a practice transition.
Proven Location
If the selling dentist has successfully operated a dental practice at the current office location for an extended period of time then the buyer can be confident that the practice’s location will continue to be viable for the foreseeable future.
Upside Potential
Many established dental practices have tremendous upside potential and provide the new owner with opportunities to significantly increase new patient flow and practice revenue shortly following a practice purchase. These growth opportunities may include implementing an external marketing plan, expanding doctor days and business hours, retaining specialty services that are currently being referred out, etc.
Mentor Possibilities
In some cases, the selling dentist may be willing to mentor the buyer prior to or following the transition of ownership, which may include teaching the buyer to perform certain dental procedures and/or manage the practice from a business perspective (handling staff issues, marketing, bookkeeping, etc.).
From www.dentappraisal.com.