BUYING A DENTAL PRACTICE
Having Buyer's Representation
When Buying a Dental Practice
Buyer representation is one of the best ways to hedge any risks when buying a dental practice. NEXT LEVEL CONSULTANTS has been a part of hundreds of practice acquisitions and knows how to avoid pitfalls and challenges that arise when buying a dental practice.
The best part about working with a Next Level Consultants buyer representative is that we can save you thousands of dollars. We provide a fully comprehensive practice valuation and a deep dive into practice location and competition analysis. We help you secure the best lending options and provide a transition blueprint and personal counsel during the entire due diligence process. We can even help you understand and negotiate LOI and Leasing terms and agreements, saving you time and money along the way.
The advantage you have working with a Next Level Consultants buyer representative is having someone looking out for you. Someone who has no vested interest in the transaction and is looking at the deal from the perspective of, “Will this doctor be profitable and successful for years to come?” after buying this dental practice.
Work With A Buyer's Representative
When Buying a Dental Practice
When buying a dental practice, having buyer's representation is one of the best ways to hedge any risks. The best part about working with a buyer representative is they can save you thousands of dollars and give you certainty in a deal. A good buyer rep will provide a full and comprehensive practice valuation. One that deep dives into a practice's location and gets a competition and demographic analysis.
They will also help you secure the best lending options. One that streamlines a deal and avoids closing delays. They can help you find a lender that knows the dental industry, a lender who will give you the best rate and options for the practice you are purchasing. Not all buyer reps provide transition support and coaching for the post purchase strategy and counsel including credentialing.
NEXT LEVEL CONSULTANTS has been a part of hundreds of practice transitions and knows how to avoid pitfalls and challenges that arise when buying a dental practice. The advantage you have working with a Next Level Consultants buyer representative is having someone looking out for you. Someone who has no vested interest in the transaction other than, “Will my doctor be profitable and successful for years to come once they own this practice?”
HOW TO BUY A DENTAL PRACTICE
Buying a dental practice is a multifaceted process that requires careful planning and evaluation. It begins with defining your goals and a well thought out budget. Then, researching the market to find a suitable practice in a promising location. The key steps toward buying a dental practice include
- Assessing the practice’s financial health
- Evaluating patient base
- Inspecting the equipment and office condition
- Reviewing the lease
- Analyzing the team and staffing
A buyer rep will help you negotiate a fair price based on a professional valuation. You must secure your financing as well, and prove to the bank's underwriting that this deal make sense. Once you commit to a practice, you submit an LOI that says you're interested in buying that dental practice. If the LOI is agreed upon you have time to conduct a thorough due diligence process. With the right dental consultant or buyer’s representative, and a strategic approach, buying a dental practice can be one of the most rewarding career moves a dentist makes to get into private practice ownership.
BUYING A DENTAL PRACTICE
STEP BY STEP PROCESS
Step #1 LOCATION ANALYSIS
Demographic Study
Determine the competitive landscape •
Identify the community and culture you want to be involved •
Define socio-economic conditions •
Personal & Lifestyle Preferences
Are there any non-compete restrictions •
Determine your commute time •
Family and personal “feel” or interest in a particular area •
Practice Search
Broker Listings •
Targeted Letters to Specific Doctors •
Industry Networking •
Step #2 PRACTICE VALUATION
Evaluate Prospectus
• Review Purchase Price
• Determine Cash Flow
• Clinical Comparison
Step #3 MAKE AN OFFER
Submit a Letter of Intent (LOI)
Offer a Price •
Structure the Deal •
Determine Due Diligence Period •
Outline General Lease Terms •
Propose a Close Date •
Earnest Money •
Step #4 DUE DILIGENCE
• Discover Any Pitfalls or Setbacks
• Deep Dive Into Financials
• Insurance Contracts Analysis
• Learn Patient Demographics
• Review Current Lease
• Clinical Chart Audits
• Evaluate Equipment
• Opportunity Assessment
Step #5 TEAM OF ADVISORS
Secure Lending with Bank •
Engage Legal Counsel •
Credentialing Specialist •
HR Advisor •
Marketing Specialist •
Step #6 CLOSE THE DEAL
• Sign Agreements
• Employee Retention Strategy
• Update Business Plan
• License
• Entity Filing
• Hire Escrow
• Secure Business Insurance
• Launch Marketing Efforts
• Write an Intro Letter to Patients
• Fire or Hire Employees
Step #1 Location Strategy
Demographic Study & Analysis
• Determine the competitive landscape
• Identify the community and culture you want to be involved
• Define socio-economic conditions
Personal & Lifestyle
• Are there any non-compete restrictions
• Determine your commute time
• Family and personal “feel” or interest in a particular area
Practice Search
• Online Broker Listings
• Targeted Letters to Specific Doctors
• Industry Networking
Step #2. Practice Located
Evaluate Prospectus
• Review Purchase Price
• Determine Cash Flow
• Clinical Comparison
Step #3. The Offer
Submit a Letter of Intent
Offer a Price •
Structure the Deal •
Determine Due Diligence Period •
Outline General Lease Terms •
Propose a Close Date •
Earnest Money •
Step #4. Due Diligence
• Discover Any Pitfalls or Setbacks
• Deep Dive Into Financials
• Insurance Contracts Analysis
• Learn Patient Demographics
• Review Current Lease
• Clinical Chart Audits
• Evaluate Equipment
• Opportunity Assessment
Step #5. Deploy Your Team
Secure Lending with Bank •
Engage Legal Counsel •
Credentialing Specialist •
HR Advisor •
Marketing Specialist •
Step #6. The Closing
• Sign Agreements
• Employee Retention Strategy
• Update Business Plan
• License
• Entity Filing
• Hire Escrow
• Secure Business Insurance
• Launch Marketing Efforts
• Write an Intro Letter to Patients
• Fire or Hire Employees
If you're buying a practice or doing a startup, Mike Dinsio is the guy you need on your team. I bought a dental practice during a very uncertain time (right in the middle of the Covid-19 pandemic). It was not ideal, but Mike made the process as smooth and enjoyable as possible. I slept well at night knowing that Mike was looking out for me. He did a cash flow analysis of the practice, negotiated the purchase price, helped me create a business plan, proforma, and did a whole bunch of things for me until the closing of the deal.
I've been listening to the Next Level podcast for years, so when I decided to buy a practice on my own, I thought I could handle it myself. That changed quickly after reaching out to a broker and realizing I was way out of my depth. I called Michael, signed up for their buyer’s rep service, and from that moment, I knew I was in good hands.
Michael, Paula, and their team were incredible. They had all the right connections in Phoenix, knew exactly what to say and do at every step, and provided guidance that was essential to closing on this practice. I genuinely couldn’t have done it without them. Their expertise and support made all the difference, and I’m incredibly grateful for their help. Worth every bit of the investment!
A Dental Practice Transition
After the close and the practice is yours, now what? Luckily when you partner with Next Level Consultants we have your back. Our team of specialized coaches can make your transition seamless. Because we also have a full and comprehensive practice management consulting service, our team members can navigate the transition process with ease.
When you work with our buyer representatives you also get a team of practice management consultants that cover Credentialing, HR, Marketing, Billing, Accounts Receivable, and more…
Transitioning into practice ownership is one of the most exciting and daunting things a doctor can do. Day one everyone is looking at you wondering what you're going to do and if you can actually do it! But don’t worry our program helps make this transition process as smooth as possible.
Reach out to learn more about buying a dental practice and working with a buyer representative from Next Level Consultants.