Any dentist’s decision to transition from being employed at an institution or establishment to becoming an independent provider is a momentous one. Once a dentist decides to become an independent provider, it usually entails the risk associated with starting and running a business. Still, it also comes with a significant degree of independence and freedom that it affords with providing dental care to patients on your terms for your financial benefit.
This dream of providing dental services as an independent provider or a group practice can be achieved in multiple ways. One option is to start your practice. The alternative is to acquire an established dental practice. However, the first option appears to be appealing to many because it allows complete control of the business and an opportunity to predetermine the foundation of the dental practice and plan for a business in which there is a significant amount of control micromanaging decision making. This can be a highly gratifying personal and professional experience for the entrepreneurial dentist. But it entails a considerable amount of investment and risk-taking.
There are no guarantees that the dental practice will be profitable in short to medium term. And in a process that requires multiple decisions to be planned and executed seamlessly, mistakes will inevitably be made. These can come at a high personal, professional, and financial cost. To avoid many of these challenges acquiring and practicing in an established dental practice such as this excellent dental practice for sale in Northern Virginia is often an attractive, low risk and convenient option for those wishing to take the next step in their professional dental career.
Should I use professional services when buying an existing dental practice?
Purchasing a dental practice is a complex process with many different factors that must be considered when evaluating and deciding to buy a dental practice. It is considered industry best practice to consult with professionals who can help you provide personalized services based on your specific situation to set you up for the most excellent chance for success. It is a great way to mitigate and reduce the risk of purchasing an established business. They use years of expert experience in the industry while considering the current market situation to accurately assess the state of the existing dental practices for sale.
The process of assessing a dental practice by professionals follows an objective methodology that focuses on expert information gathering, analysis of multiple business fundamentals, negotiation, and comparison to current market trends, before providing their clients with their expert advice.
A simple overview of the processes involved in buying an established dental practice involves the following steps. These steps often occur in sequence but may need to be managed simultaneously for a professional to arrange the best deal possible.
This initial step involves efficient information gathering to allow the expert consultants to understand best the dentist’s requirements, expectations, financial and professional situation wishing to purchase an existing dental practice. This involves multiple discussions with a team of professionals with their expertise, such as lawyers, accountants, marketers, and expert managers. This vital process allows expectations to be set between all stakeholders, a baseline of information to acquire, and a personalized search of dental practices suitable for the customer to consider purchasing.
Assessment of financials
When searching for a dental practice that meets the customer’s criteria, one of the most important factors to consider is the customer’s financials and the dental practice that is on offer. This process is often managed by experts in business management, financial and tax accounting. It results in an accurate assessment of both stakeholders and determines if purchasing a dental practice is financially viable in the current market and the future.
Assessment of operations
This process involves the evaluation of operations in relation to current practice valuation assessed and the sale price that is demanded by the stakeholder that is the seller. The assessment often considers the current and predicted costs associated with personnel, operations, maintenance, and expenses related to capital investments required to maintain the dental practice’s successful operation. An essential part of this process involves assessing and potentially renegotiating existing lease agreements of the dental practice. This is an excellent opportunity to reduce expenses that will drive future profits.
Assessment of current and future profitability
The reliable assessment of a dental practice’s business operations by experts to allow for the accurate evaluation of current and future profitability. This assessment considers the current market situation and factors in future trends and expected changes. This information is of crucial importance for any potential dentist that wishes to acquire an established dental practice. It is often vital in planning investment strategies, decision making, viability, and continued success.
Current and Future Valuation
An accurate market assessment of dental practice is provided to interested customers. This process usually involves a CPA that specializes in dental practices.