Also, make sure that they are practicing the kind of dentistry you want to. When buying a dental practice, you need to deeply consider not just the practice itself, but also the area that the practice is located in. Consult your financial, legal and accounting advisors, as neither Bank of America, its affiliates, nor their employees provide legal, accounting and tax advice. After you purchase the practice, how will you want to assume control? This field is for validation purposes and should be left unchanged. Buy-in — With this type of sale, you would buy in for 25 to 50% and buy the rest of the practice when the seller decides to retire. Whether you are ready to buy now or just browsing for a dental practice, our transition advisors are happy to discuss your options. Start Buying a Dental Practice the Right Way. Staff retention — The seller was the pillar of the practice for many years and has now departed. AFTCO makes it easy to find the perfect practice for you. over the life of their career by owning an office rather than working as an employee. There are four key stages in buying or selling a Dental Practice. We know that you have invested years of hard work into your education and experience. The Key Stages in Buying or Selling a Dental Practice. Whether you’re a recent dental school graduate looking to establish your career or a seasoned dentist with dreams of relocating, it’s important to have an experienced dental practice broker by your side as you navigate through the process. The criteria above will be what drives the decision based on the goals for your practice. They will demand a shorter term (three to five years), which provides you with little or no flexibility to grow the practice with new technology or remodeling. There will often be an emotional value to the sale, regardless of the monetary value. Businesses come in all shapes and sizes. Although your payment may be lower with an adjustable rate, rates will eventually rise, so your best solution is to lock in a strong fixed rate today for the next seven to 15 years. Take time to understand existing systems and processes before you decide to make changes. One of the advantages of buying an existing dental practice is the equipment you’ll inherit. For example, let’s say a seller has a $5,000 charitable contribution that was being paid out of the practice, and the buyer decides they don’t want to continue contributing at that level. A true transition period — with both doctors working — can make or break a transition. A longer term is preferable to minimize both the impact on your cash flow and the risk inherent in patient attrition during the first year of your practice. The term will range from five to 15 years. USDT helps buyers understand this, as well as several common factors to help find a practice that’s the perfect fit. It is important you secure the dental practice that is right for you. This course is Part II of Mr. Lott's previous Townie Meeting presentation, "Buying a Dental Practice: There is More to It Than Price" This presentation goes into detail on issues in buying or merging a practice, and specific A/R issues as well as other ideas and strategies. provides informational materials for your discussion or review purposes only. Top 10 Tips 1.Career History – Building the perfect CV Before buying a dental practice you’ll need to consider the complex facets of a dental transition, including legal documentation, financing, and how you’ll keep current patients and staff members happy post-transition. Buying your first dental practice will be one of the highlights of your entire career. Hiring consultants may be a great idea not only during the due diligence period, but also during the post-sale transition. A specialist attorney will have a niche among many dentists and will typically provide the best advice at a packaged price. Dental-specific attorney — Since the practice broker will represent the seller, you need to find a reliable source to represent you, the buyer, during the transaction. Every practice transition is different, so your Transition Advisor will work with you to make recommendations based on your specific transition. Included in the LOI is the closing date. Buying a dental practice right out of school needs to be given serious thought as many new dentists have student loans or other loans that may need to be considered first. As a prospective buyer, put yourself in the seller’s seat for one moment, and imagine that you have owned this practice for the past 20 to 30 years. Equal Housing Lender new window. Use a specialist dental solicitor/accountant, don't be tempted to use a mainstream one for this, it's not a simple sale and purchase agreement. AFTCO has the largest national database of practice opportunities and the knowledge and expertise needed to guide you to the right practice for you. There are many schools of thought and specializations in dentistry. Buying or selling a dental practice will probably be one of the biggest financial transactions you will ever be involved in.. And whilst your years at Dental School will have trained you to provide an excellent clinical service for your patients, no one ever teaches you how to buy or sell a dental business. At 1st Med Transitions, we understand that Buying A Dental Practice on your own can be a difficult and time consuming task. Although buying an existing dental practice has a low risk for the buyer, it is not entirely without risk. It’s beneficial to everyone involved and helps curtail any confusion you may have about the environment and philosophy. Room to expand — Chances are this is your first practice and you are ready to conquer the world. Buying a practice. When you own a dental practice, you need to be an expert clinician, expert patient manager, and expert business manager. You should not acquire a dental practice without the input of one or more of these key advisers: Practice transition consultant or broker — Dental practices can be sold directly by the owner or through a business broker, who may have multiple buyers waiting for the right practice to come along. Henry Schein Professional Practice Transitions, Inc. is a national leader in dental practice transitions. If your production meets your ambition, do you have the room to expand? A subsidiary of Henry Schein, Inc. they provide expert guidance for selling and buying dental practices, assessing partnership and associateship opportunities and performing dental practice appraisals and valuations. Buying a dental practice(s) is a milestone in any dentist’s career. There is a high probability that the proceeds from the sale of your practice will be a significant piece of your upcoming retirement. The company has grown from a regional company to a national company, and we’re now US Dental Transitions. Learn what steps you should take to prepare for buying a dental practice!Check out our dental practice buyer’s checklist! Your lender can help you understand the most accurate cash flow — and other important metrics of your practice — as you move forward.Find out what questions to ask your lender before taking out a dental practice loan. Dental Transitions works to ensure there’s a good fit between the selling dentist and the buying dentist. Buying a dental practice is typically contingent on the buyer’s ability to secure 100% financing for the amount of the practice purchase price. It’s a practical choice to buy a practice that is already operating under the philosophy you subscribe to. If you prefer that we do not use this information, you may opt out of online behavioral advertising. When buying a practice there are many items that need careful and detailed consideration to ensure you have a smooth and successful purchase. One is to borrow from a financial institution, and the other is equity funding, where an investor or consortium of investors inject capital in return for shares in the practice. In these cases, before you sign and agree, consult with one of your advisers on the details of such an agreement. Visit our Dental Practice Listings page. It will allow you to place your priorities front … Buying a Dental Practice Guide for First Timers Take your time looking for a dental practice that already operates the way you would like yours to work. The due diligence in these agreements needs someone who understands the complexity of a dental business to understand, especially if buying an NHS practice. To learn more about relationship-based ads, online behavioral advertising and our privacy practices, please review Bank of America Online Privacy Notice and our Online Privacy FAQs. by Roy R. Rice, CPA. That’s why U.S. Most dentists will first approach their local bank to fund their practice loan, and although this is always an option, local banks are often generalists — and collateral lenders that see little value in the goodwill aspect of the practice. Breaking into the dental field is a big step — but it doesn’t have to be a big headache. Existing staff may be paid very well based on the length of employment and tenure; you may feel they are overpaid based on their skill level or other reasons. During this time, you likely started conversations with industry experts about the possibility of acquiring a practice. Pre-contract 2. From start to finish, buying a dental practice can take up to eight months. Taking this exciting step and venturing out on your own, gives you complete control of how your practice operates and the direction it takes. Is this practice in an urban, suburban, or rural environment? Each has benefits and drawbacks. Take it one step further: Hire a consultant who will spend time in the practice to analyze the staff, the systems, and perform a complete chart audit/patient count. Buying a dental practice is probably one of the biggest decisions you will ever make in your career. Connecting Practice Transitions can walk you through each phase of the buying process, allowing you to buy a dental practice with a clear mind and zero stress. Ideally, the seller should write this letter if you haven’t previously worked in the practice. You now have patients who are the children or even grandchildren of your patients. Make sure that the dentist has the kind of patients and employees you want. Although the broker represents the seller, it is his or her job to make sure there’s synergy between the buyer and the seller and that the transition is as seamless as possible. 9 Steps to Buying a Dental Practice. As you begin the process of buying or selling a dental practice, you will naturally have many smart questions. Every buyer must be pre-qualified with a bank prior to meeting with a seller. It is important you find a legal advisor who has dental market expertise so they understand the nuances of a dental practice, employee contracts, what warranties and covenants will be of use in the contract and any considerations for your regulatory body. Our recommendation tool can help you find the right financing. There are other instances where the selling doctor walks away once the transaction is complete. Price should be used to screen out dental practices that may have otherwise been a fit if you cannot qualify for the required financing.We have some excellent dental practices for sale right now. Lenders determine cash flow in much the same way, but there are variables, such as allowable expenses. Sometimes, the selling doctor will stay on staff, working for the buying doctor for a period of time. 1. Pre-qualification is not a formal bank approval. Consultants can advise you on Hiring and firing, as well as how to customize, establish and maintain your systems — without rocking the boat too much — are all their areas of expertise. Prepaying your loan or making additional principal payments may be possible as you grow your practice and increase your cash flow. We can help you conduct your research, secure financing and plan for your future success. Location could influence both future revenue streams and access to specific amenities you may require. 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