Expect a rebrand to happen within the first 12 months. Additionally, you need to ensure that all equipment complies with industry standards and has been properly serviced. Ask smart questions. Make sure your practice can financially absorb those costs if you absolutely need to move. It's a good idea to assess not only your cash flow, Stalcup said, but also your professional experience and personal strengths and weaknesses. 10 questions to ask before purchasing a dental practice. Updated: March 27th, 2020.
However, failure to proceed with caution can produce devastating financial consequences and hinder your ability to attain your career goals. If you can, break the numbers out on a monthly basis for at least the first two years, and then on an annual basis for years 3 – 5. Critical Questions to Ask Your Banker Once You’ve Decided to Acquire a Dental Practice. One of the main reasons cited by dentists and dental students for pursuing a career in dentistry is the potential to be their own boss. Equipment — If not already in place, it could cost tens of thousands of dollars to upgrade a low-tech practice with technology such as digital radiography, a high-end intraoral camera system and a robust Electronic Dental Records System. Apparently, the dentist has attracted patients, has a team, and has kept the practice running long enough so that he or she is now selling it.
You need to work with a CPA and an attorney who are both experienced in the sale and purchase of dental practices. During the interview process, ask how you can work together to integrate you and your philosophy into the current office culture. In general, if treatment wait time is less than four weeks, the practice is already adequately staffed and the owner should commit to reducing their own hours if bringing in a new full-time dentist. Maybe you feel like the list price is $100K too high. As you begin the process of buying or selling a dental practice, you will naturally have many smart questions. But, it also has the potential to pay dividends. Beyond looking at the practice's patient base, Stalcup said you also need to determine other key details, such as: Above all, "Take advice from people who are familiar with dental practices, " said Stalcup. Questions to ask when buying dental practice without. Amanda Mombert, Private/ Professional Banking Relationship Manager in the national healthcare space, specializes in providing end-to-end counsel and support to healthcare clients, especially dentists. At Dental and Medical Counsel we are proud to be one of the most trusted law firms for dentists. When you do a buy-out with no transition, Doublestein said you can expect to lose between 20% and 25% of patients.
It's best to consult with a dental practice consultant to ensure you make sure you follow through with the right processes so that you can have a successful dental practice transition. Who do you represent in the transaction? In a stressful conversation, it becomes even more so. "The most important thing to do is be productive: do the dentistry you were trained to do, be transparent, educate your patients well, and work hard to gain their trust, " Doublestein said. Is the hygiene department under-developed? Questions to ask when buying dental practice sales. Asking this question could save you a lot of time and money! According to a recent presentation by Aligned Dental Partners, DSOs are expected to represent nearly 30 percent of all dental practices by the end of 2021, with the following breakdown by size: Elite Groups (75+ locations): 39. Location – Is the practice's physical location in an area that will support how you visualize your practice? It could also be because the buyer did not know what documents to ask for and failed to consult with proper professionals to assist in the purchase. What type of dental work is performed at the practice? Sometimes it can be hard to narrow down all of the key points, so pick your top concerns and go in order. You want to be assured of a quick response time. These considerations will directly impact the practice's growth potential.
This includes household income, number of residents per dentist and number of competing dentists. Find out how I can get tax credits? The amount you're comfortable borrowing will define what practices are in your price range. While the buyer can continue to conduct due diligence until closing, the initial step should not be "glossed over. Is the location of the practice close to your target patients, easily accessible for you and your team, and within easy walking or driving distance to other neighborhood amenities? These are expenses that need to be identified upfront so that you can evaluate the practice's true profitability. Buying a dental practice is a big decision, and, like any other big decision in your life or career, you want to make sure that you're handling it properly, taking the right factors into consideration and making sure that nothing is overlooked. Questions to ask when buying dental practice in san francisco. If patients pay based upon a treatment plan (e. g., orthodontic contracts), will there be an adjustment to the price based upon services that have been prepaid? Dr. Roger Levin, Founder and CEO of Levin Group Inc. How are bad debts handled? "You can't just look at the number of patients in the dental software, " Doublestein said, "because that could account for someone who came in one time for an emergency. "