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.