If you’re in the market to buy a dental practice, you may be wondering “where do I start?” Dentists don’t put “For Sale” signs in their front window, so how can you know which practices are for sale, how much they cost, and what the transition process will be like? Finding an excellent broker like DDSmatch Southwest is the first place to start. Buying a dental practice is much easier when you can use expert advice to narrow down your search. If you’re starting out and not sure what you’re looking for, read our tips below for an easier buying experience.
What Type of Practice are You Looking For?
You need to consider what type of practice you are looking for before buying a dental practice. Are you looking as an individual buyer, to buy into a partnership, or simply transition into a new practice as an associate? Whatever situation you are in DDSmatch Southwest can help you find the perfect fit. Here are some other things to keep in mind as you look at different dental offices.
- Specialty. Do you have a specialty? Your transition will be easier, and you will retain more patients if you buy within your specialty.
- Insurance. Consider insurance types and how they will affect your dental practice. Whether you process payments as a Fee For Service, PPO, HMO, or Medicaid your business model is important and could determine who your clients are. If you are taking over an existing practice and plan to change how your patients pay for services, you may lose patients up front.
- Atmosphere. Each dental practice has its own atmosphere. The personality of the current owner and his or her staff will greatly affect the feel of the office, how well it flows, and what patients it attracts.
Where Do You Want to Live After Buying a Dental Practice?
Big city or small town? Urban area or suburbs? You probably have an idea of the general area you want to buy a dental practice in, but try narrowing down your search based on the following criteria:
- Personal Residence: if you already own a home, or are planning on buying one, consider the commute you would be comfortable with. Owning a home one hour away from your practice means you could be in for a lot of time in the car, or moving your family closer to your practice.
- Lifestyle: if you want to keep your commute to a minimum consider the amenities you want around you. Do you like living in a rural area or do you want to be close to new restaurants and concert venues? If you have kids or plan on having kids, do you want to be in a good school district? Buying a dental practice is not something you will fo often, so it will benefit you and your family to think ahead.
- Expansion Opportunity: if you think you may want to expand your offices to two or more locations, start thinking about that now. Buying a practice in a small town may limit your options for expansion.
How Much Financing Do You Qualify For?
Just like buying a car or a house you are limited by financing when you buy a dental practice. Find out how much you can afford to spend and that will help narrow down your search. How are dental practices valued? Dental Economics has an excellent blog post explaining the basics. Our team at DDSmatch Southwest offers dental practice valuations conducted by a top-rated third-party accounting firm. In addition to this practice valuation, we also offer a “clinical appraisal” through Dr. Charles Blair’s “Clinical Treatment Analysis Report.” To perform your due diligence as a buyer, you must not skip this report.
When you are buying a dental practice, one key thing to keep in mind is how you will transition into your new role. This is different for each doctor, associate, and staff member. For instance, the doctor who is transitioning out of the practice may stay on as an associate after the buyer takes over so they can help with the transition. Other doctors decide to leave as soon as the papers are signed. Each type of transition has pros and cons that you should think through before beginning your purchase. When you work with the expert team at DDSmatch Southwest, you will benefit from our Trusted Transition Process™. A clearly communicated transition process is the key to a lasting dental practice.
Buying a Dental Practice is Easier With Expert Help
Whether you are looking to buy your own practice or join another as an associate, DDSmatch Southwest has the tools you need to find your perfect match. We will consider your skills, location, long-term goals, and professional needs and present you with a confidential list of sellers to consider. Buying a dental practice doesn’t have to be an arduous task, and when you trust the experienced team at DDSmatch Southwest, it will be a breeze. If you are in the market to buy a dental practice in Texas or New Mexico, give us a call today to set up a consultation.