Practice Mergers – A Great way to Grow!

There are several ways in which dentists can grow their practices. Some of these methods range from expensive marketing campaigns to expanding services or products offered to patients. Although these methods may prove to be effective, we have found that the best and most profitable way to grow a practice is a “practice merger”.

In essence a practice merger entails the complete movement of a seller’s practice into a buyer’s facility. Even though these practice mergers can be extremely beneficial to both parties, there are certain fundamental elements that should be in place in order to maximize the benefits of a practice merger.

First, the buying doctor must have a facility that can accommodate the additional patients and/or dentist. Secondly, the purchasing dentist must have the personnel and ambition to accommodate the additional patients being acquired.

From the selling doctor’s perspective, it is best when the selling doctor is without a lease or on a short-term lease obligation. In addition, if the selling doctor’s equipment has little or no value, it is not detrimental since the acquiring doctor is not necessarily interested in the “hard assets”. (Nevertheless, even if the selling doctor’s equipment for the most part is ultimately discarded by the buyer, the buyer may be able to deduct the “allocated value” of the discarded equipment). Finally, the two practices need to be “fairly proximate” to one another since the goal is to have the selling doctor’s patients end up at the buying doctor’s office.

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