Dental Practice Broker Articles
Dental Practice Transitions: A Buyer’s Mindset, Part 2
As discussed in Dental Practice Transitions: A Buyer’s Mindset, Part 1, a solid first step is a free consultation with a dental practice broker. The most important part of buying a dental practice is self-knowledge. What exactly are you looking for when you make the purchase?
An NAPB dental transition broker can help you not only to really articulate your plans but also with creating an outline of the appropriate actions to take in order to reach your aim. For example, a dental practice valuation is assessing both tangible and intangible assets. Knowing what your priorities are can simplify the process and save you a great deal of both time and money. Purchasing a dental practice is a hefty investment and having a plan offers better odds for a successful dental practice transition.
For example, it might be prudent to ask yourself the following questions:
- Does the patient demographic match my style of dentistry and support my current type of practice or the practice I envision?
- How do I relate to the existing staff? Vendors? Surrounding community?
- Is the seller interested in selling outright? If so, does that align with my professional and personal goals? Does the structure of an outright sale support my financial objectives?
- Is the seller interested in a selling stock in the practice and continuing to work alongside me for a period of time? If so, do our work styles compliment one another?
Once your aspirations are clear, you can partner with your dental transition broker to study specific dental practices. Study is the right word; at this point, it’s vital to thoroughly investigate a prospective practice. It’s helpful to dig into patient files and ask the following questions:
- How far do the patients have to travel to the practice?
- How often are patients making appointments (and showing up for them)?
- What are the most common forms of insurance utilized by patients when visiting the practice?
- What services have been performed?
- What services (beyond regular cleanings and checkups) still need to be performed?
Beyond the state of the practice’s patients, it also might be beneficial to have a frank discussion with the seller. Why is the seller selling the dental practice at this time? Look around the building. Is it a well-maintained property? Is there appealing landscaping around the entryway? Are the tangible assets of the practice in good condition?
These inquiries should give you a good sense of the viability and potential continued profitability of practice for sale. Your dental practice broker can assist you and design a customized list based on your particular requirements.
Understanding your ambitions and working closely with a NAPB dental practice broker will give you a list of questions to maintain your buyer’s mindset. Staying in the right mindset will aid your positive experience when buying a dental practice.
|Dental Practice Transitions||Selling a Dental Practice|
|Dental Practice Valuation||Dental Practices For Sale|