Dental Practice Sales
This process entails a thorough appraisal of the practice, defining the proper pricing and terms (including the terms for lease or purchase of the selling doctor’s building), as well as any other contingencies necessary for the sale. Usually these transactions are “turn key” in nature; that is, the purchasing doctor takes over the practice from the selling doctor including all equipment, supplies, furnishings, staff and goodwill. A practice purchase is most often extremely financially rewarding for a purchasing doctor, as well as from a “pride of ownership” standpoint.
Although there may be a few risks when you purchase a practice, the rewards are substantial! Some of the advantages of owning your practice include:
- You will earn more money (especially as a percentage of your production)
- You will own an asset that will increase in value and thus advance your personal net worth
- You will have ultimate job security
- You will be able to build the “practice of your dreams”
- You create your personal work/life balance
- You will have higher personal and professional freedom
Dental Practice Buy-In
This transition involves the sale of a partial interest in the practice, often to an associate dentist. There are several details that need to be thoroughly addressed when working through a Practice Buy-In:
- Completing a thorough and complete appraisal.
- Negotiation of sales terms.
- Preparation and negotiation of sales terms.
- How will income and expenses be divided?
- How will administrative duties be handled?
- How can an owner leave the “partnership”?
We at Shea Practice Transitions have the most experience with not only practice sales but practice buy-ins of any other organization in the Upper Midwest.
Advantages of a Buy-In
- Maximize practice earning potential
- Enhance practice value
- Share administrative duties
- Reduce your schedule
- Peace of mind for the disposition of the practice in case of death, permanent or temporary disability, or a timely retirement
- Smoother retirement transition
- Favorable tax laws for disposition of the practice
Stages of a Buy-In
“Beginning, Middle, End”
- Associateship preceding Buy-In
- Buy-In Pricing and Terms
- Partnership – It is imperative that compensation formulas, division of duties and control issues be addressed and agreed to
- Departure of Doctor – Retirement, Disability, Death