Buying a Dental Practice
Working With A Buyer's Representative
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 just having someone who is 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.
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 sound budget. Then, begin 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, patient base, equipment, and office condition, then negotiating a fair price based on a professional valuation. After that, you must secure your financing. Once you’ve committed to a practice conduct a thorough due diligence process on that practice to ensure it’s a sound investment. With the right dental consultant or buyer’s representative and a strategic approach acquiring a dental practice can be one of the most rewarding career moves a dentist makes.
Step #1. Location Strategy
Demographic Study & Analysis
- Determine the competitive landscape
- Identify the community and culture you want to be involved
- What 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 Agreement
- Lease
- Purchase & Sale
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
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.