What is a Practice Buy-In?
Generally a Practice Buy-In is the sale of a fractional portion of a practice. This process usually entails an associateship preceding the purchase with a subsequent “partnership” between Buyer and Seller. Finally a buy-out is consummated.
What are the Seller’s advantages of a Practice Buy-In?
The primary advantages of a Buy-In are:
- Maximize the earnings potential of the practice
- Enhance the value of the practice
- Sharing of administrative duties in the practice
- Ability to reduce the seller’s work schedule
- The piece of mind for the disposition of the practice in the case of death, permanent or temporary disability
- Ability to time a doctor’s retirement
- Continued quality of care for the practice’s patients and staff
- Favorable tax laws for the disposition of the practice
What is the difference between a practice sale or “buy-out” and a “buy-in”?
Essentially the buy-in may entail an associateship preceding a fractional sale of a practice with subsequent joint ownership. Typically a buy-out entails a complete sale of a practice with a subsequent associateship by the selling doctor. At times a practice transition can entail elements of both a “buy-in” and a “buy-out”.
As a practice owner, is a Buy-In right for me?
In order to ascertain whether a Buy-In is right for you, certain questions need to be addressed:
- Do I have a facility that can accommodate more than one dentist (or the potential to expand the facility to accommodate more than one dentist)?
- Do I have the patient capacity to accommodate more than one dentist?
- Am I willing to make certain changes to accommodate another dentist in my practice?
- Are the changes necessary to accommodate a buy-in outweighed by the potential increased earnings and value to my practice?
- Am I willing to give up some “control” of the short and long-term planning for my practice?
- Is it important for me to secure the disposition of my practice, either for economic or non-economic reasons, in the case of my death or permanent disability?
- Is it important for me to be able to time my retirement?
View our Practice Buy-In opportunities.
Please contact Shea Practice Transitions for a no obligation consultation to explore whether a Practice Buy-In is right for you.