Purchasing a dental practice can be a complicated endeavor but we are here for you every step of the way! By considering the steps we have lined out below, you will be on your way to a rewarding career as a practice owner.
Before you start the process, you should consider a number of factors while also asking yourself some questions below:
When you are ready to purchase a practice, one of the most significant aspect of your new business is the location of where you'll practice. You will want a location that is easy for your patients to find and ideally, a location that will do some of your advertising for you.
Key attributes to consider:
Another important aspect not to be overlooked is the demographics of the area you are interested in. By putting together a comprehensive demographics report, you can gain a better understanding of your targeted area and the patients your office would be looking to treat.
Elements to consider:
Purchasing a dental practice can be a lengthy process and you will want a team of advisors that will help you through every step of the process. They will also help guide you in making wise financial and legal decisions to help protect you from potential roadblocks and compliance issues.
Who do we suggest you hire?
The letter of intent is one of the first documents you will be need in order to start the process of purchasing a dental practice, as it details your interest in buying the practice and sets out some of the basic business and economic terms.
Items to consider in your letter of intent:
Upon acceptance of your letter intent, it is your responsibility to make sure that you are reviewing every aspect of the practice before you purchase it.
The three types of due diligence are:
Another thing to factor is whether the practice you are interested in purchasing is the right practice for you! As you zone in a particular practice you should also be able to recognize red flags.
After submitting a letter of intent and doing your due diligence, the next step to finalizing your purchase is to submit a purchase agreement.
Other items to consider that wasn't mentioned in the letter of intent:
With any tough decision, there are advantages and disadvantages to every option. The same can be said when determining whether you should buy or lease commercial space for your dental practice. Other factors to keep in mind is whether the seller owns their space and if they do, are they willing to sell their space along with the practice itself. When push comes to shove, if you can purchase the commercial real estate then go for it, but if you are not able to, leasing space is not a bad option either.
Securing a lease with beneficial terms is critical. The five tips to a successful lease negotiation are:
Purchasing real estate has more advantages than disadvantages but here are few things to consider:
Similar to purchasing insurance, correctly setting up the legal structure of your practice can help protect you. Also, incorporating can effect how you tax structure.
Things to consider when setting up your legal entity:
Depending on the situation you are in, you may choose to hire the existing team members of a practice you are purchasing or you many want to completely hire your own.
In most aspects, it is in your best interest to hire on the team members of the practice you are purchasing for a number of reasons, such as to ensure a smooth transition, familiarity with the processes, and the bond shared with patients. However, it is possible not all team members might be a good fit. To gain a better understanding of evaluating team members, you can view the 7 Tips to Successfully Transitioning Team Members After a Dental Practice Purchase. In addition, we've listed a couple of the tips below:
To assemble a winning team for your practice, consider these tips:
Upon purchasing a practice, you will inherit the seller's patient base. However, chances are not all of the patients will carry over and see you. That is why it is up to you to make a good first impression by introducing yourself whether by email, mail or in person. While you can't assume the selling dentist notified his or her patients ahead or after the closing date, it's in your best interest to communicate any logistics during the transition.
What to communicate with the patients:
Before opening your dental practice, there a few final tasks you need to complete.