Purchasing a dental practice is major life decision and one that should not be taken lightly.  Before deciding to become an owner there are several things to consider and questions that you must ask yourself.

• The only true way for a young dentist to build wealth is through ownership of a practice.
• Comfort with ownership typically is when the young dentist is comfortable with practicing clinically.
• Opportunities can come in the form of:
  • Purchasing a retiring doctor’s practice
  • Buying into a practice
  • Starting a practice from scratch

• In any of these cases, it is essential for the young dentist to know exactly what they are looking for.  Here are some things to consider:
  • Where do you want to live and why?
  • What are you looking for in the community?
  • How much do you need to earn?
  • Do you wish to own real estate?
  • What is the availability and need for dentists in the area?  What are the Dental Demographics?
  • What advisors will you need to help you?
  • What type of practice would be interesting to you?
  • How well can you manage people?
  • Do you want the seller to stay on for a transition period?
  • How to value a practice?

• Frequently, a dentist focuses on the amount of debt that will be accumulated purchasing a practice, rather than the more important issues:
  • Cash flow needs and the young dentist’s ability to produce the dentistry to satisfy a cash flow
  • One of the toughest decisions today for a young dentist is whether to purchase a practice or start up from scratch
  • Most important decision in a start up is location
  • Other major decisions are:
    • Practice Solo or as a Partner?
    • How to get financing?
    • How long should the process take?

• These are among the many reasons you will need some professional help!

If you think that you are ready to take the leap into practice ownership or if you have any questions about the process, contact Practice Impact.

General Information: Office Building for Sale-Plumbed for a Dental Practice!

Location:  Free-standing building in downtown Canton on the corner of 13th & Cleveland Ave. NW

Building: Divided into 2 dental offices with large central lobby and plenty of free parking. (20 spaces!)   Building has been completely updated within the last 2 years-newer roof, furnaces, water system, flooring & paint.  There is also a full basement with ample storage space.

Operatories: 9 Plumbed Operatories, all with Porter Delivery System

Office Size:4,068 square feet

Other Information: For more information please contact Practice Impact by filling out the information below or contact the Realtor directly by clicking HERE

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Dr. James Everhart, Worthington, Ohio

2. Meet with your Financial Advisor: Before making the life changing decision to sell your practice, you want to make sure that you can afford to sell and that it is in your best interest.  There is no point in listing the practice for sale only to find out later that it does not make financial sense for you to sell.  You also need to ask your accountant what the tax ramifications of selling your practice will be and plan for a favorable purchase price allocation.

3. Talk to and Hire a Dental Practice Broker: A reputable broker will guide you through the sale, valuate the practice, assist you with an asking price, market the practice, find a buyer and negotiate a sale.  A broker will make the sale process run smoothly and take away the burden finding a qualified buyer while keeping the sale confidential.  A good broker can also point you in the direction of financial and legal advisors if needed.

4. Obtain a Practice Valuation: Valuating the practice is a must before selling.  Without a proper valuation there is no way guarantee that you are receiving a fair value for your practice.  If you list your practice with PI, the valuation fee is waived so there is no added cost to you for obtaining the valuation report.

5.    If you have an Associate, Make sure there is an Employment Contract: If your associate does not want to purchase your practice, you need to protect the practice’s value with an employment contract containing a restrictive covenant and non-solicitation clause.  If the associate were to leave before the sale or is not hired by the buyer, not having a restrictive covenant and non-solicitation clause can drive down the value of your practice.

6.    Do Not Slow Down: Although you may be mentally ready to retire, you should keep your weekly clinical hours the same as long as you are physically able to.  Cutting your hours will reduce production and collection, negatively affecting the value of the practice and selling price by making the practice appear to be in decline.

7.    “Weed Out” Your Accounts Receivables: Although this should be done on a regular basis even when you are not contemplating selling, most practices have accounts receivables that should be written off or sent to collections.  A high amount of uncollectable accounts can negatively affect the sale and negotiation process.

8.    Take a look at your fee schedule: Do an analysis to find out if your fees are comparable to others in the area.  If your fees are too low, then raise them now; no buyer wants to have to increase the fees immediately.  Additionally, a fee increase will raise your practice income.

9.    Revive your Recall System: Often times, older practices become a little lapse with patient recall.  Strengthening your recall system will boost your production, patient number and keeps the schedule full thereby making your practice more attractive to potential buyers.

10.    Clean up the Clutter and Spruce Up your Office: The practice should look neat and tidy; no one wants to purchase a dingy and out of date office.  Making large equipment purchases is not warranted within a year or two of selling your practice, but making sure that the equipment is in good working order and making small, cosmetic updates to the office will enhance its appeal.  Something as simple as a fresh coat of paint, new carpeting and updated pictures in the lobby may be all that you need.

-Dr. Robert Kroeger, Cincinnati, Ohio

General Information: Profitable, Solid Practice between Pittsburgh & Harrisburg!

Location: Free-standing building with high-road traffic & visibility

Operatories: 4 fully equipped

Office Size: 1,800 square feet

Staff: 2 Hygienists, 1 Assistant, 1 Office and 1 Office/Assistant

Other Information: Owner doctor is retiring and offering a tremendous amount of goodwill to the new owner.  Doctor owns the building and will lease with the first option to purchase.  Doctor currently spends 28 clinical hours per week in the office and has over 3,700 active patients.

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Dr. Michael Mann and Dr. John Sedor, Middleburg Hts., Ohio