When you visit your potentially new dental practice, look for these elements: - Training and support for continued education for staff. First, consider where you want to live. Buying a dental practice is a big undertaking. First, a little more context. George Grignano, Partner. In a stressful conversation, it becomes even more so. Is it the right location? How strong are the active chart/new patient statistics? Reputation management? Questions to ask the CPA in this category include: - What is your experience with dental practices? By asking this question and being inquisitive, you get a sense of the culture and the communication style of the practice.
The first meeting is a time for you to figure out whether you feel good about moving forward. Simply put, it's important for the buyer to walk in the seller's shoes. Questions to Ask Your CPA When Buying a Dental Practice. When you acquire a dental practice, you inevitably have to make certain changes to set the business up for success. Before buying his practice, Doublestein said he and his partner reviewed the seller's software to see what types of services he offered and how many procedures he performed a year. Be sure to make the most of it. Question 7: How many weeks of hygiene are fully scheduled?
Buying a dental practice is one of the most exciting career milestones a dentist will ever achieve. Meaning, the same term length as the bank term length. If you're starting a new practice, you'll need solutions to help you with all these tasks. The better practices are the ones where the goodwill is a larger proportion than the physical assets. With a business sale, you are purchasing the owner's equity in the practice and are, essentially, stepping into the ownership shoes of the seller — liabilities and all. And making that great first impression will largely come down to the questions you ask, and how well you listen to the answers. Of course, you want satisfactory answers to your questions, which means you want a dental CPA who will be able to value the practice and provide you with all the information you need to make sure buying this practice is in your financial best interest. Does the banker have a role in the lending decisions being recommended and made?
Get our latest news and information on business finance, management and growth. A subsidiary of Henry Schein, Inc. they provide expert guidance for selling and buying a dental practice, assessing partnership and associateship opportunities, dental practice management, and performing dental practice appraisals and valuations. Again, you're looking to see if your own philosophy will mesh well with the practice. Be a sincere listener and listen carefully. Numbers are black and white, but it's the gray area that will make or break your transition.
It is not enough to review a summary of a valuation report or rely upon the broker's opinion. Today, let's zero in on your first meeting with a selling dentist. Can the banker provide introductions to other industry experts such as a CPA, attorney, insurance provider, consultant, contractor, etc. The dental The DSO model goes back several decades, but it wasn't until the mid- to late-1990s that pioneers such as Heartland and Aspen began to emerge at scale. You'll likely need to apply for financing when buying a dental practice. With an asset sale, you are purchasing the agreed-upon assets of the practice. Typically, unless there is an unusual situation, practice owners do not sell their business overnight. Again, you have a lot of options. Before you meet with the seller or get on a call with the broker, write down your questions.
If you have great credit and can afford to wait a few months to hear back from a lender, consider applying for a bank loan or loan from the Small Business Administration. Dental practice transition specialists can walk you through your options and explain what the implications could be on you and your new dental practice. Here are some critical questions to consider as you evaluate potential partners: - Do the banker and bank have experience in healthcare and, more specifically, the dental industry? Buyers frequently charge an "administrative fee" for collecting the seller's receivables. Most importantly, be proactive in building a plan for your own success. The option you go for depends on your credit score, as well as the amount of time you have. And if you listen closely, it gives you some insight into the practice that might be difficult to glean otherwise. As you move forward in making this big decision, you will be wise in choosing your business advisors carefully. Does the schedule of the clinic fit your lifestyle?
Is the hygiene department under-developed? The number of active charts is an indicator of the size of the practice. You may want to ensure that the banker is accessible, consultative, and understands the underwriting and closing process. Is the practice overhead within industry standards? But it's especially important for an owner to update fees before bringing on a new dentist. Here are some examples: 1. Invoice the seller for the credit when the patient is credited.
If you want a mentoring relationship, be sure to discuss what that looks like. Ready to find your ideal practice? Where associates are involved in the practice being purchased, check to see if there are associate agreements in place. Updated: March 27th, 2020.
The history of production versus collection. Use this as a starting point for practice valuation discussions, and make sure to talk with your accountant to help navigate this decision. Aside from the financial items listed above, there are numerous issues that should be addressed by a lawyer who has dental industry experience and understands the legal aspects of a dental transition. The greater the number of years of employment, the greater your potential severance and termination pay obligations. Additionally, if you have never purchased a business, you should consider seeking the guidance of an experienced dental attorney who can help you make sure that the practice is in good legal and financial standing. Don't buy into the rhetoric that young dentists aren't buying practices anymore because they can't get financed or any of the other reasons being thrown out there.
We will assist you in learning how you can go about assuring the seller that you want to maintain his or her good reputation in the community and maintaining confidentiality about the sale until the seller is ready to release that information to their team members and the community itself. You can estimate the value of a practice — and figure out how reasonable the seller's price is — by looking at the practice's revenue, Stalcup explained. If this is a "deal killer, " it is very helpful to deal with (and attempt to resolve) this issue early, not at the closing table (which occurs all too often). There must be some things that impressed you. Instead of trying to cut corners, embrace the effort that goes into buying, transitioning, and improving a medical practice.
What is the condition of the equipment, and will you incur the cost of replacements or upgrades in the near future? Who do you represent in the transaction? So you are ready to take the big leap and purchase a dental practice.