Educate Yourself

Much like how you’ve educated yourself about dentistry, you must also educate yourself about the process of purchasing a dental practice. The easiest way to do this is by assembling a team. An attorney who regularly handles dental-practice transitions will be able to provide specific details about acquiring the practice. A dental CPA who handles ongoing CPA services for dental practices is also valuable, as they’re able to help you assess a practice’s performance, so you understand exactly what you’re buying.

You might also consider speaking with buyer’s representative. Michael Dinsio, MBA, founder of Next Level Consultants is a dental consultant who focuses strictly on helping doctors become business owners via acquisitions or even startups. You will also want to speak to a banker or lender to help you find the best options for a loan.

Crunch the Numbers

Get a handle on your personal financial situation! Lenders will be checking your financial health as part of their due diligence to you, so you should have a solid idea of how much you’ll need to earn before and after income taxes, including how much you’ll need to pay towards your loans. If you can, consider where you’ll want to live and work for the next 15 or so years. You also need to have a good idea of how much dentistry you’re able to produce; this will help you determine if the practice is the correct size for you.

ValuING the Practice FOR SALE

When looking at all the listing and trying to determine if the asking price is fair or if the practice is profitable, your given a very generic set of valuation nambers. Practice owners and brokers always put their best foot forward, naturally. You really need a 3rd party valuation. Working with a buyer’s representative who is licensed to do a fair valuation puts you in the driver’s seat. Once you have that you can start to negotiate on some high level terms.

When it comes to purchasing a dental practice, being educated and staying diligent is crucial throughout the entirety of the process. That said, following these few tips will help you get on the right track. Find the professional help you need, and ensure that your making sound decisions.

About Next Level Consultants

The team at Next Level Consultants is proud to provide doctors all over with the skills they need for to become successful practice owners. Under the leadership of Mike Dinsio and Paula Quinn, Next Level Consultants has helped hundreds of doctors open their doors and start changing lives. If you have any questions about purchasing your first dental practice, don’t hesitate to reach out to their team online or by phone: (720) 309-9551.