December 11, 2019

Pop Quiz: How Well Do You Know the Dental Practice Transition Process?

You’ve kept up with our blog and taken our quizzes; now it’s time to put your dental practice transition knowledge to the test. We’ve put together a 10-question quiz that covers everything from the different types of transitions to the factors that contribute to the “goodwill” of your practice. The prize for a perfect score? Priceless information to help guide you through the dental practice transition process.

1.) Which factor contributes to how long it will take to sell your dental practice?

A.) Goodwill.

B.) Type of transition.

C.) Age of retiring doctor.

D.) No factors contribute to how long it will take to sell your practice.

2.) How can you increase the value of your dental practice before selling?

A.) Choose an associate.

B.) Cutting back your hours.

C.) Expand services.

D.) Decreasing staff.

3.) Which factors contribute to the valuation of your dental practice?

A.) Practice and patient demographics.

B.) Location.

C.) Goodwill.

D.) All the above.

4.) Why should you start your dental practice transition early?

A.) More transition options.

B.) Fewer offers.

C.) Decreased value.

D.) None of the above.

5.) Which of the following do lenders look for in dental practices?

A.) Digital technology.

B.) Drop in finances.

C.) Years in business.

D.) Variety of insurance plans.

6.) Which of the following should dental practices look for in a lender?

A.) Minimum payouts for services.

B.) Understanding of industry.

C.) Maximum amount of financing.

D.) High risk.

7.) What reason(s) should your dental practice go digital?

A.) Increased patient care and communication.

B.) Streamlined recordkeeping.

C.) More efficient and accurate imaging.

D.) All the above.

8.) When should you invest in new dental equipment?

A.) To go digital.

B.) To attract a new demographic.

C.) When your lease is over.

D.) When the equipment breaks.

9.) How can you maximize tax advantages for your dental practice?

A.) Calculate appreciated goods.

B.) Start a dental practice transition.

C.) Take out a shorter-term loan.

D.) Add up goodwill.

10.) Which aspects make up a letter of intent in a dental practice transition?

A.) Purchase price.

B.) Earnest money down.

C.) Acceptance and closing dates.

D.) All the above.

Answers: 1.) B; 2.) C; 3.) D; 4.) A; 5.) A; 6.) B; 7.) D; 8.) A; 9.) D; 10.) D.