Purchasing a dental practice is one of the most important decisions you will make in your professional dental career. Your choice may open the door to increased income and personal freedom, or a poor choice may lead to unfortunate circumstances, higher debts, and more stress. Therefore, it’s critical for you to begin preparing for practice ownership by building a strong team of advisors who provide a clear path of understanding with the purchasing process and how you can evaluate potential acquisition opportunities that come your way.
Practice ownership can be a wonderful and fulfilling pursuit. Dentists have two choices when it comes to owning their own practice: purchase an existing practice or start a dental practice from scratch. Below are several reasons many dentists chose to purchase an existing practice:
Most dentists rely on financing to purchase a dental practice, and one of the biggest hurdles facing practice ownership is financing. You must ensure your personal credit history and financial condition meet the expectations of lenders when you are ready to make a purchase. The process of preparing for practice ownership should begin during dental school and continue until you are ready to purchase or start your own dental practice. Secondly, practice experience is ideal. Experience in the dental workplace will provide you with history and credibility to any lender you may work with. The better your credit and personal financial condition are with workplace experience, the more prepared you will be when it comes time to pursue practice ownership. Below are some things to monitor as you prepare for practice ownership:
It is very helpful to include an experienced dental broker in your transition. This will often reduce mistakes that can turn a great decision into a nightmare while decreasing miscommunication that may occur. The National Association of Practice Brokers has an array of professional dental brokers at your disposal. Although many of our dental brokers will usually represent sellers, our philosophy is to present a win-win transaction for all parties involved. To find out if the broker in your area provides buyer representation, please connect with dental broker members in your area. To further prepare yourself for a dental acquisition we recommend building relationships with the following advisors:
Once you find the perfect dental practice for you, you'll be prepares with a team of advisors who have the experience and knowledge to protect your interests.
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