April 25, 2022
3 Things You Should Know Before Buying a Dental Practice
Recently, Professional Transition Strategies Founder and President Kyle Francis took to Facebook to address three things you should know before buying a dental practice. “We literally do thousands of buyer conversations on a yearly basis,” Francis said. “At any one time, we have something between 100 and 120 practices on the market, which means there’s a lot of folks interested in those practices.” The number-one question received: Is this practice going to be right for them? Here’s how to figure that out.
Assess the production
The big question mark here is if you can replicate that level of production in the future. These numbers will be broken down in an appraisal of the dental practice on the market, broken down by provider and production type. From there, you can compare the active patient roster and total new patients during the past 12 months against the list of employees with wage and salary information to see if the output is sustainable.
Scope out the location
The old real estate adage “location, location, location” holds true in the dental practice market, as well. The key here, though, is deciding if this is where you want to plant your proverbial roots. Sure, it’s important to know the patient demographics and see how the practice stands up compared to its competition in the area, but above all, is this the community in which you want to invest your life both professionally and personally? After all, your patients may very well end up being your neighbors, as well.
Consider the lifestyle
Above all, it’s important to weigh if the dental practice you’re considering buying will provide you with the type of lifestyle you want to have, monetarily and emotionally. If the salary is in line with your expectations but working nights and weekends to catch up on the day-to-day operations at a practice that doesn’t align with your specialty aren’t what you imagined, you may find yourself right back where you started.