Buying a dental practice is a big decision, and, like any other big decision in your life or career, you want to make sure that you’re handling it properly, taking the right factors into consideration and making sure that nothing is overlooked. To help you with that decision, here are six questions that you should keep in mind when looking for a dental practice.
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What should I consider when buying a dental practice?
First, the old adage holds true: location. Consider the location of the dentistry in terms of your commute – how far are you willing to travel to work? Also, think about the kind of dentistry you want to run and the income you want to make. This amount should reflect not only your retirement goals, but also expenses such as student loans, a mortgage, car payments, insurance, and other family-related expenses. Don’t forget about the gross production of the office, collections, overhead, and patient charts and reports. -
Will I retain the services of the current dentist?
In most cases, selling dentists will be willing to stay on for a certain period of time to assist with the transition, introducing you to patients and referring doctors, and helping you understand the current processes of the office. However, we recommend that this period not be longer than about six months, as you don’t want their presence to interfere with you making the practice your own. -
Is it in the right location?
Make sure you look at the demographic profile of the area around the dental practice. It’s important to know household income, number of residents per dentist, and the number of competing dentists in the area in order to predict the practice’s growth potential. -
What type of dental work is performed at the practice?
Whether it is general dentistry, pediatric, endodontic, or periodontic dentistry, make sure you know what type of dental work you’re interested in buying before you start looking. -
Do the clinic’s hours suit my needs?
Does the schedule of the clinic fit your lifestyle? This is an important consideration as it affects the success of the practice itself as well as aspects of your personal life. -
Will the sellers’ staff and patients stay in a transition?
It can be very beneficial to retain the staff of a dental practice during a transition. Additionally, patient retention should be in the mid-to-high 90s range when the transition is handled by experts.