You finally have the experience and the knowledge necessary to own your own dental practice. Now what? In this DDSLogic article, we will discuss the steps of buying a dental practice. From start to finish what you can expect is the unexpected. Every dental practice transition happens differently and has its own pitfalls and dental practice value.
The first step is finding a dental practice listing. Many online sites are available for dental practice listings, but most of them are incomplete and very difficult to navigate. There is only one website that provides you with all the information about a dental practice for sale, of course that is DDSLogic.com. On DDSLogic you will find all the information in an easy to read, easy to compare format that will help you make the initial decision on what dental practice to buy.
Another method is talking with dentists in your area and asking if they know of any dental practices for sale.
Whichever method you choose for finding a dental practice listing, make sure you are only looking in an area that you are willing to live.Â
Most dentists are not satisfied with living more than 30 minutes from their office. An hour commute seems like an OK idea at the onset of a dental practice purchase, but there is a lot of work that goes into a dental practice transition and you will end up spending an extra 2 hours in the car instead of with your family.
After finding a dental practice listing, you will need to calculate the value of the practice. The only accurate online tool for this preliminary dental practice value estimate is DDSLogic.com. It can cost anywhere from $500 to $1500 to contact a dental practice consultant and get a dental practice valuation. The only website where you can get practically free comprehensive dental practice value estimates is DDSLogic.com. Using a dental practice valuation tool will enable you to compare practices in the area and also gain perspective on what changes you could make to the practice that would increase its profitability.
The next step is to compare the practices you are interested in and the only way to do this is to contact a dental practice consultant for the dental practice you are interested in. This can be a difficult task, as often times the contact information are inundated with calls and emails from prospective buyers. Most will ask you to fill out a non-disclosure and will tell you they will contact you when something comes up. Be aware that when you are buying a dental practice, this method is ineffective and you are highly unlikely to ever get a call from that consultant.Â
The DDSlogic difference is that DDSLogic preferred consultants are incentivized to get back with you as soon as possible so you don't wait 6 months to a year to be contacted about an available practice.
Once you contact a dental practice consultant, you will be given a dental practice valuation or prospectus. This is the valuation prepared by the dental practice consultant for the seller of a dental practice. The potential bias here is obvious. The consultant is being paid between $10,000 and $100,000 to sell the dental practice so they have incentive to get as much for the practice as possible. It is best to consider the value of the dental practice in a prospectus as a high estimate of the dental practice value. The value on a dental practice listing is usually this high estimate. Like all business and real-estate deals, the price and options are always negotiable. You must educate yourself on the value of a dental practice so you can see the flaws or inflations in the dental practice valuation provided by the dental listed on most websites is inaccurate or will send an email that will not be answered for many weeks. This is because dental practice consultants practice consultant. If you don't have time to learn how to estimate the value of a practice you have two options. You can pay a dental practice consultant to value a dental practice for you, or you can do the calculations yourself. This first option is very expensive. The second requires a great deal of knowledge, unless you use the simple and easy to use dental practice value calculator available on DDSLogic.com. Whichever method you choose for valuing your dental practice, make sure you are getting the best possible deal for your practice.
Even though it is illegal for dental practice consultants or dental practice sellers to falsify information about a practice, they can choose to leave out certain facts when writing the prospectus. So the next step is to ask for a showing of the practice where you can do your due diligence and find the true value of the practice for you. Keep in mind as you are going through charts and other equipment and documents that you may or may not be willing or able to perform all the services that the previous dentist performed. The seller dentist may be selling their practice for a reason and it is good to know what that reason is. Also evaluate the charts of the dentist for quality of care and standards of documentation and treatment. If the patients are used to being sent to specialists for treatment, you may find it difficult to convince them to see you instead after you buy the dental practice. Dental practice due diligence involves a full evaluation of the equipment value of the dental practice done by a third party. This can often be used in the final negotiations and when obtaining financing. Keep in mind that costs you will likely incur due to replacement or repair of equipment in the first year should be removed from the price of the dental practice. For a complete due diligence guide for buying a dental practice you can visit DDSLogic.com.
At this point you are ready for the help of qualified dental practice consultant. Even if your practice situation is between friends or family, the final documentation and legal paperwork should be completed by a dental practice consultant or dental practice transition lawyer. You can find dental practice consultants on DDSLogic.com. There are a lot of legal consequences wrapped up in the purchase of a practice and it is strongly advised that you obtain proper consultation before you finalize the deal of a dental practice sale.
The first step is finding a dental practice listing. Many online sites are available for dental practice listings, but most of them are incomplete and very difficult to navigate. There is only one website that provides you with all the information about a dental practice for sale, of course that is DDSLogic.com. On DDSLogic you will find all the information in an easy to read, easy to compare format that will help you make the initial decision on what dental practice to buy.
Another method is talking with dentists in your area and asking if they know of any dental practices for sale.
Whichever method you choose for finding a dental practice listing, make sure you are only looking in an area that you are willing to live.Â
Most dentists are not satisfied with living more than 30 minutes from their office. An hour commute seems like an OK idea at the onset of a dental practice purchase, but there is a lot of work that goes into a dental practice transition and you will end up spending an extra 2 hours in the car instead of with your family.
After finding a dental practice listing, you will need to calculate the value of the practice. The only accurate online tool for this preliminary dental practice value estimate is DDSLogic.com. It can cost anywhere from $500 to $1500 to contact a dental practice consultant and get a dental practice valuation. The only website where you can get practically free comprehensive dental practice value estimates is DDSLogic.com. Using a dental practice valuation tool will enable you to compare practices in the area and also gain perspective on what changes you could make to the practice that would increase its profitability.
The next step is to compare the practices you are interested in and the only way to do this is to contact a dental practice consultant for the dental practice you are interested in. This can be a difficult task, as often times the contact information are inundated with calls and emails from prospective buyers. Most will ask you to fill out a non-disclosure and will tell you they will contact you when something comes up. Be aware that when you are buying a dental practice, this method is ineffective and you are highly unlikely to ever get a call from that consultant.Â
The DDSlogic difference is that DDSLogic preferred consultants are incentivized to get back with you as soon as possible so you don't wait 6 months to a year to be contacted about an available practice.
Once you contact a dental practice consultant, you will be given a dental practice valuation or prospectus. This is the valuation prepared by the dental practice consultant for the seller of a dental practice. The potential bias here is obvious. The consultant is being paid between $10,000 and $100,000 to sell the dental practice so they have incentive to get as much for the practice as possible. It is best to consider the value of the dental practice in a prospectus as a high estimate of the dental practice value. The value on a dental practice listing is usually this high estimate. Like all business and real-estate deals, the price and options are always negotiable. You must educate yourself on the value of a dental practice so you can see the flaws or inflations in the dental practice valuation provided by the dental listed on most websites is inaccurate or will send an email that will not be answered for many weeks. This is because dental practice consultants practice consultant. If you don't have time to learn how to estimate the value of a practice you have two options. You can pay a dental practice consultant to value a dental practice for you, or you can do the calculations yourself. This first option is very expensive. The second requires a great deal of knowledge, unless you use the simple and easy to use dental practice value calculator available on DDSLogic.com. Whichever method you choose for valuing your dental practice, make sure you are getting the best possible deal for your practice.
Even though it is illegal for dental practice consultants or dental practice sellers to falsify information about a practice, they can choose to leave out certain facts when writing the prospectus. So the next step is to ask for a showing of the practice where you can do your due diligence and find the true value of the practice for you. Keep in mind as you are going through charts and other equipment and documents that you may or may not be willing or able to perform all the services that the previous dentist performed. The seller dentist may be selling their practice for a reason and it is good to know what that reason is. Also evaluate the charts of the dentist for quality of care and standards of documentation and treatment. If the patients are used to being sent to specialists for treatment, you may find it difficult to convince them to see you instead after you buy the dental practice. Dental practice due diligence involves a full evaluation of the equipment value of the dental practice done by a third party. This can often be used in the final negotiations and when obtaining financing. Keep in mind that costs you will likely incur due to replacement or repair of equipment in the first year should be removed from the price of the dental practice. For a complete due diligence guide for buying a dental practice you can visit DDSLogic.com.
At this point you are ready for the help of qualified dental practice consultant. Even if your practice situation is between friends or family, the final documentation and legal paperwork should be completed by a dental practice consultant or dental practice transition lawyer. You can find dental practice consultants on DDSLogic.com. There are a lot of legal consequences wrapped up in the purchase of a practice and it is strongly advised that you obtain proper consultation before you finalize the deal of a dental practice sale.
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