Posted on Oct 14, 2013
Image Credit: © Dreamstime.com
Posted on Oct 14, 2013
Many doctors may have unrealistic expectations about their career path. I have talked to a number of dentists who thought that they would graduate from school, start a practice, and then pretty quickly and seamlessly reap the personal and professional benefits. However, sometimes the path from graduation to retirement is not a linear one.
Receiving guidance from an NAPB dental practice broker is wise when thinking about how and when to buy a dental practice.
How to Buy a Dental Practice: Working with a dental transition specialist is smart because there are numerous variables to consider when buying a dental practice. In other words, you can structure the purchase in different ways and all of these factors greatly impact both your personal and professional bottom line.
When purchasing a dental practice, you can purchase the practice outright or you can structure the deal in phases. A consultation with a dental transition specialist may help you clarify your objectives. For instance, do you want to build a practice from the ground up? Or are you interested in collaborating with an established dentist and formulating a slower, mutually-beneficial dental practice transition? How does a dental practice appraisal work?
It perhaps goes without saying that developing a positive relationship with the seller is advisable because their cooperation is integral to the dental practice transition. Also, as you’re working with your dental transition broker, you’ll get a sense of the current landscape, providing you with a better sense of the right time to buy your dental practice.
When to Buy a Dental Practice: Timing is an important consideration when buying a dental practice. When you purchase a practice, it can mean an immediate boost in earnings to the tune of $300,000 to $600,000 during the first decade. Conversely, starting your own practice can mean an investment of a lot more time, energy and effort before you see that kind of return. However, perhaps you’re not as concerned with financial return and you really want to build your own practice. In this case, purchasing a practice may not be the best fit for you. However, gathering information and having a sense of timing will certainly come in handy when you sell your dental practice (years from now).
My strongest suggestion is—Start Now.
Even if you’re still in school, begin investigating with a local dental practice broker and outline what’s important to you when considering a dental practice transition.