January 25, 2018
Who Can Buy a Dental Practice?
Whether you are graduating dental school, looking for a lucrative investment or leaving a corporate environment, buying a dental practice is an intricate process. While every situation is unique, many buyers have similar concerns. Here are some common concerns of buying a dental practice and who can buy one.
Who can buy a dental practice?
Whether or not you can buy a dental practice depends on in which state you live. At a point in time, most states prohibited corporations from owning dental or medical practices. This came from the idea that only a person who is licensed to practice dentistry or medicine could own a practice. But as time changed, many states moved away from this law. According to this article, “These changes often came at the request of physicians and dentists who wanted to obtain the tax and liability benefits of corporate status for their practices.” So, if you are wondering who can buy a dental practice, first check to see if non-dentists can own a practice in your state.
Your current situation
There are many life factors that play a part when deciding to buy a dental practice. Some of the most common situations that buyers consider are the cash flow necessary to match their current lifestyle, student loans, where the practice is located and how far it is from their current/desired residence. It is also important to consider the gross production of the office, overhead, collections, and patient charts and reports. All these components are important and will affect when and where a practice is purchased.
Without a doubt, patients are the future of any dental practice. It is extremely important to look at the current patient load, retention rate and the longevity of patient commitment.
Cost vs. return
A qualified dental practice broker will provide you with the information you need to determine if the return of the practice will suit your lifestyle, as well as conduct a practice appraisal to determine fair market value. With financial assistance for purchase and practice upgrades, whatever your financial goals are, there is a practice to match.
If you have any unanswered questions about who can buy a dental practice, contact the experts at Professional Transition Strategies.