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Tips for a Successful Dental Practice: Read Before Buying a Dental Practice

As you know, not all dental practices are equal. What makes one successful and another not? In this post, we address some general principles to help you understand what you can do to ensure the success of your practice. It’s best if you can understand these principles before buying a dental practice, but they can be of use to you no matter where you are at in your career. 

If all it took to make a dental practice successful was an adequate set of clinical skills and competency, then everyone would be on an even playing field. This is, however, not the case. There are factors outside of the quality of care your training and experience can provide. Perhaps the three of the most important factors are: 

  • Technology: Staying current with dental technology matters. First, it provides your patients with a better experience. Patients respond positively to things like digital imaging and quieter handpieces. Second, it makes you more efficient. The new equipment can cut down your time in procedures, allowing you and your hygienists to increase your production per hour.
  • Business acumen: While you got into dentistry to provide quality care, you can’t accomplish that goal if you can’t stay competitive. Organizing your office in a way to maximize your efficiencies, give quality customer service, and reducing overhead will make sure your practice provides that high quality of care to as many patients as possible.
  • Identity: There is no other dentist like you. Sure, there are dentists that will offer the same services with the same equipment in similar environments. But there is one variable: the doctor. What is it that sets you apart from the other doctors in your area? What, in essence, is your brand? This is what you have that will make you stand out. If you can, it’s best to have identified this before buying a dental practice so you can build your practice around it from day one. 

A Good Doctor Has Good Communication Skills

Everything we do communicates something, whether we mean it to or not. This is why it matters where your office is located, how it appears to new patients, what your signs look like, and where and how you advertise. These are the “first impressions” you give to new patients. And it continues when they walk through the door. Is your waiting room comfortable, clean, and inviting? What is the demeanor of your front desk staff? You want all of this to communicate that your patients are in a caring environment where their interests are being heard and addressed.

Consider how you interact with your patients. Do you actively listen? Active listening means that you closely observe your patients, hearing their words and watching their body language. By paying close attention, you’ll learn more about what they are thinking and feeling, making you better able to understand and respond. Patients who feel seen and heard will appreciate the attentiveness.

Compare active listening to an experience where you were speaking to someone and they were engaged in other tasks, waiting for you to finish talking so they could move on, or, worse, showing disdain for what you were saying. This isn’t someone you want to speak to again. And it wouldn’t be a dentist your patients will want to return to.

If you don’t have these skills, work on them. If you already have a practice, be sure to incorporate these skills and encourage your staff to do the same.

Implement a Management System

Fortunately for you, you’re not the first to run a dental office. It’s been done before and done well. If you’ve had experience working in other offices, consider what worked well and why (and what didn’t and why). If you are buying a dental practice, look closely at how its managed and whether that seems to be working. You don’t need to have all the answers on day one, but you do need to be thinking about things like division of labor among employees, patient flow from making an appointment through checking out after treatment, how to address and resolve employee issues, keeping inventory, and so on.

Some dentists like to be involved in every aspect of practice management. Some prefer to delegate to an office manager. Whichever works for you is fine, but, remember, at the end of the day, it’s your practice so it’s your responsibility. If you have a manager, keep in close communication with them to be aware of what’s happening. 

Create and Use an Online Presence

More and more, our communication is becoming electronic. When people want to know about a dental office, they’ll look at the website, read Google reviews, check out their Facebook page. These are all opportunities for you to communicate what you are and, perhaps more than you think, interact with your patients. 

You can create a patient portal on your website where patients can schedule appointments, see their records or results, and message with you and your staff. Make sure that someone in your office is checking for messages submitted through your website or any of your social media channels and promptly responding. 

Use your website, Facebook page, and social media channels to highlight what sets your practice apart. Highlight your services and products and your staff members. Have a page with your picture and bio, include a little personal information. Let your patients know you are a real person, not just a doctor behind a mask. 

For more on how to use social media to promote your practice, check out our article on this topic.

Have a Marketing Plan

It’s not enough to put up a sign, pay for advertising on the local baseball diamond’s back fence, and sponsor a float in your town’s Fourth of July parade (although you should do all of those things). Marketing requires a strategic effort in which you consider what patients you want to attract and how to best communicate with them. What works will vary from market to market, however, in the 21st century, this is increasingly electronic. This means the online efforts described above along with email and coordinated social media efforts. For more on this, check out our recent post on marketing.

Pay Attention to the Details

There are a million details to keep track of and instead of listing them all, we’ll discuss an example: inventory. Who is in charge of inventory? Who is tracking use of supplies, what is remaining, what needs to be ordered, and how soon? Do you know how quickly you go through your supplies, meaning, do you know when you need to reorder so you don’t run out? You don’t want to find out the answer to that question when you are in the middle of a procedure and it’s too late. Carefully consider the details required to have a smooth running day in the office, make a list, and then think through how those details are managed in your office. Look for where you can be more efficient.

Consider a Flexible Financial Options

This one might not work for every practice, but, if you are considering buying a dental practice, you should think carefully about the pros and cons of flexible financial options.

One thing is that not every office offers these options. That is something that can set you apart. Another thing is that the flexibility gives patients a reason to accept treatment. The more reasons they have to accept, the more frequently they will accept. It encourages patients to accept more expensive treatment plans that they otherwise wouldn’t be able to afford. This means you get to capture those patient’s business and they get the care they need. 

Remember what we said in the beginning: a major factor in your success will be dependent on what sets you apart. Your unique qualities—as both a person and a doctor—should be baked into your practice’s brand. You are giving your patients a reason to choose you. Most likely there are other doctors in your area that offer the same services and products with a comparable level of skill and experience. It’s your unique personality and perspective that will set you apart. It will resonate with patients. Leverage it.

Considering Buying a Dental Practice?

If you are considering buying a dental practice in Texas or New Mexico, ddsmatch Southwest has practices available. Review our listings here. At ddsmatch, we believe a good match is one where both doctors walk away happy with the deal. We work closely with our seller clients and potential buyers to find the right doctor to build on the success of our clients. If you are interested in any listings you see on our site or would like more information, contact us today—it starts with a conversation.

Is Your Practice Underperforming? Fix it Before Putting Your Dental Practice for Sale

No one sets out to fail. But life does not always conform to our expectations and things often don’t go our way. If your dental practice isn’t performing the way that you’d hoped, you might be concerned about your future and retirement. If this sounds familiar, take heart, all is not lost! You probably still have time to turn things around and build more—and more consistent—value into your business before you put your dental practice for sale.

A dental practice is, in many ways, no different from any other small business. Some experience steady growth, some experience consistent performance, some experience ups and downs in production, and some crash and burn. If you find yourself in a slump—or worse, a downward spiral—there are things you can do. Below, we’ll address some steps to take to help you get back on course.

Do Not Lose Hope

Before we get into what you can do, we’ll address the one thing you absolutely cannot do. You must not lose hope. When things don’t go our way, it’s easy to get upset, angry, or depressed. These emotional responses, however, will distort your perspective and cloud your judgment. Hopelessness is anathema to making positive change because you think, “Why bother? What difference will it make?” By setting emotions aside and taking a clear-eyed approach, you’ll be able to see solutions where you didn’t see them before.

This is most certainly easier said than done, especially when it comes to your dental practice. You’ve put a lot of time, effort, money, and care into starting and building your business. It’s tough to see it underperform. But your emotional attachment to the business will only get in the way of you being able to most accurately assess the problems and make critical decisions. When you act from a place of negative emotions, you are more likely to avoid making the hard decisions that could save your business, your career, and your future. 

Here at ddsmatch Southwest, we’ve helped many doctors prepare their dental practice for sale. Having worked closely with them as they review their business and consider their dental practice transition, we know how much the practice means to them, what they’ve invested in their work, their employees, and their patients. Because of this, we want to see dentists succeed in their careers—we know how meaningful it is. But, sometimes, that means making hard choices. And you must be up to that task if you want to turn waning practice into a strong one. You must put every option on the table. And you cannot let any of it be personal.

Essential Steps

With that out of the way, let’s move on to what you can do. These suggestions are ways to quickly increase production and profit. If your practice is really struggling, you must take these steps.

  1. Cut your unnecessary expenses. This might seem obvious. And maybe you think you have cut all unnecessary expenses. But, trust us, you probably haven’t. You may need to reevaluate your definition of “unnecessary.” Review all of your costs, being as objective as possible, and carefully consider what you really need at the most basic level. Cut anywhere you can and do it now.
  2. Cut necessary expenses. This might seem counterintuitive. How do you operate a business without paying for required elements? Well, if you’ve really cut all unnecessary expenses and that wasn’t enough, you’ve got to start making the cuts that will really hurt. This may include labor, technology, equipment, laboratory fees, and supplies. Don’t be swayed by a sense of obligation to vendors or employees. It might be hard for someone to lose an account or a job but your goal isn’t to guarantee anyone else’s income at this point. These cuts will, emotionally and psychologically, be the hardest to make, but you must change your mindset if you are fighting for survival.
  3. Increase Your Hygiene Production. In most practices, dental hygiene constitutes about 25% of the practice’s production. But, in most practices, there is room for growth in this area. Consider what hygiene work has been left undone. Work with your staff to identify which patients have incomplete work or who might be amenable to elective work. Reach out to your patients, have your hygienists help you with this, and start scheduling them for treatment. Also, if you don’t already have a periodontal program, start one immediately. These two together can add tens of thousands of dollars a year to your practice.
  4. Increase Your Active Patients. Again, this might seem obvious, but if you were already doing this effectively, you might not be in the situation you are in. Review your patient files for overdue patients and create a program to contact every one of them that is not currently scheduled and get them into your office as soon as possible. Your goal here is to get 96% of them scheduled. As soon as these overdue patients start coming in for treatment, if you keep your costs down, you’ll start seeing your production increasing. Once you have this going, keep it going. It’ll be a great selling point when you want to put your dental practice for sale.
  5. Schedule New Patients Within a Week of Their Call. While it’s great to get your overdue patients in, it’s the new patients that really boost your practice’s income. These patients must be the top priority for your office. Make sure anyone who answers your phone knows to schedule new patients as soon as possible, within seven days of that first call. The faster you get them into the office, the faster they get diagnosed, and the faster you can present them with treatment plans they will start paying for.
  6. Start All Large Cases Within a Week of Being Accepted. Relatedly, you want to close the lag between a case being accepted and treatment starting. Many patients will lag at scheduling their first appointment and a lot can happen during that gap in time, including the patient changing their mind. Instead of leaving the ball in their court, once the patient has accepted, get them immediately scheduled. Again, make sure everyone in your office is clear about this.
  7. Collect Anything Owed to You Immediately. Often, practices that are struggling have a large accounts receivable. This is money that belongs to you and should be paid. If you don’t have a collection system in place, start one now and keep it tight. Start a collections campaign (along with your overdue patient campaign) and get what you are owed. Also, start requiring payment at the time of service.
  8. Improve Your Case Acceptance Production. If you follow the usual method of having a large amount of single-tooth dentistry, you need to start being more expansive in your diagnoses. Give your patients a comprehensive diagnosis that addresses both necessary and elective options. Give them the option to get something they might want but don’t necessarily need, paying you for the service.

A lot of this advice might be hard to implement, but it will certainly be easier than having to close your doors. Remember to set your emotions aside and be rigorous in evaluating your costs and needs. Your dental practice needs a strong and dispassionate leader who is equipped to make the necessary, tough decisions. In the end, you will be glad you did.

We Can Help You Prepare Your Dental Practice for Sale

We are dental practice transition specialists that bring the experience of hundreds of successful dental practice transitions and put it to work for you. If you are considering putting your dental practice for sale and it’s not performing where you want it to be, we have options that can help. If you are considering transitioning your practice in the next five years, we offer a Practice Optimizer program to help doctors plan and prioritize for their future and retirement. We also offer a free, no-obligation Practice Transition Assessment during which we will provide valuable tools and advice to plan and prepare your practice for a smooth transition. Contact us today to set up a consultation—it starts with a conversation. 

Adopt the Best Social Media Practices Before Putting Your Dental Practice for Sale in Texas or New Mexico

We recently posted an article about how to build a solid marketing plan before selling a dental practice and, as part of it, discussed the low-cost, low-effort benefits of social media. In this article, we’ll expand on that a bit and address more specifically why and how social media can benefit your practice. If you are currently using social media and finding it effective, that’s great! We may not have anything to add to what you are doing. However, if  you aren’t using social media or are questioning it’s value, that may be because you may not understand exactly how to utilize it for a small, local business (no shade here, social media platforms are often geared towards tweens and young adults rather than middle-aged or older professionals). Regardless of your situation, it’s wise to adopt the best social media practices, especially before putting your dental practice for sale in Texas or New Mexico.

Avoid Generic Content

For social media channels to be effective, you need to engage your audience. This means you need to provide content that is interesting and compelling. If you want them to pay attention to your posts (as opposed to scrolling past with only a glance, at best), you must provide them something that they want to pay attention to. This can be a problem especially if you’ve outsourced your social media accounts or are getting free content as part of a bundle with other services.

Much of the generic, free content is stuff that might sound interesting at first glance, but, because it lacks personality, it can easily grow stale. Accounts that simply repost content from other sources will quickly become looked over in a feed that is full of more compelling content. (This is not to say you can’t ever repost anything, just be judicious about whether it is really something compelling you think your patients would be interested in.)

Remember that social media is meant to be social. This requires interaction between two real people—the poster and the reader. If your content is outsourced or generic, the reader will feel like they are being marketed to instead of being interacted with. 

But also remember that your goal is to parlay that interaction into paying patients accepting treatment. So, as you plan your content, be sure to include information about dental products and procedures that will be of interest to them. These things don’t have to appeal to all, or even most of your patient base. But those who are interested will be glad to see what you are promoting, if they feel like your dental office’s social media channels are ones they can trust (that is, that it’s a real extension of your office).

Include Clinically Relevant Topics

In addition to keeping your current patient base engaged, social media offers opportunities to bring in new patients. First, consider the goals you have for your practice. If you are considering putting a dental practice for sale in Texas or New Mexico in the next five or so years, this might be goals about expanding your patient base or increasing the amount of production you are generating from specific areas (e.g., implants, whitening, aligners, etc.). 

If you are looking to add patients, consider who you want to add, what they are looking for, and post content related to them and their dental interests. If you are looking to grow in more specific areas, such as dental implants, then post about dental implants. 

However you approach it, be sure that you are coming at it in a patient-friendly way. Your followers aren’t necessarily going to understand the technical aspects of treatment. Instead focus on results, the ease or cost-effectiveness of treatment, promotions, and so on. Remember that your content has to be interesting to your audience.

Make it Personal

As stated above, social media is meant to be social and people want to feel that they are interacting with real people. This is something that can be hard to accomplish if you are outsourcing management of your social media channels. 

As we wrote about in our previous article, it’s probably not as difficult or time consuming as you might think. This is because you don’t necessarily have to do it yourself. First, if you have a marketing agency that manages your online presence, work with them to personalize the content. Review it before it gets posted. Provide them with pictures, events, or content ideas that they can use. You know what’s happening in your office and in your community better than they do.

Second, if you don’t have a marketing agency, you probably have someone in your office that is active on social media, meaning they already have an innate understanding of how the platforms can be leveraged. Once you identify that person, have them set aside some little time a couple of days a week to take pictures and schedule posts to your accounts, and some time each day to respond to any questions or comments.

Finally, what do you post about? Anything good that happens related to your practice: new staff members, patient success stories, doctor profiles, doctor or staff achievements (whether related to dentistry or not), holiday costume contents, sponsored contests, community outreach. Literally anything that reflects well on you, your staff, your patients, or your community.

Small Changes Can Make a Big Difference

You may be surprised what a difference these changes can make. The algorithms that govern social media platforms reward the popular and penalize accounts that don’t get interaction. The more clicks or likes or reposts you get, the more your accounts will be recognized by Facebook, Instagram, and Twitter. This means they’ll appear higher up in your followers’ feeds, making your posts more visible. The fewer clicks and likes you get, the more you’ll slide to the bottom.

Also, be sure that all of your social media accounts are linked to each other and to your website. You want potential patients (and existing ones!) to be able to easily find your accounts and website, to click through to your other channels. This also builds credibility in the eyes of the algorithms. 

If you are considering putting your dental practice for sale in Texas or New Mexico, a strong social media presence can be a good selling point. It bolsters your claims about the value of the goodwill of your practice—that it really is worth what you are asking for it. It shows how you are a integrated part of your local community with a strong relationship to the patients your treat.

Finally, people are drawn to dental offices whose online presence is full of smiling patients and friendly staff. Show them they can find that in your office. It can be done with only the cost of a few hours each week but can be surprisingly effective.

ddsmatch Southwest Can Help Prepare Your Dental Practice for Sale in Texas or New Mexico

We are dental practice transition specialists that can put the experience of hundreds of successful dental practice transitions from across the country to work for you. If you are considering putting your New Mexico or Texas dental practice for sale in the next five years, we offer a free, no-obligation Practice Transition Assessment during which we will provide valuable tools and advice to plan and prepare your practice for a smooth transition. Contact us today to set up a consultation—it starts with a conversation.

Build a Solid Marketing Plan Before Selling a Dental Practice

What makes a successful dental practice? Is it the best trained doctors? The friendliest front desk staff? Is it the latest equipment? All of these may help but a practice can live without any of them. The only thing a dental office cannot survive without is a steady stream of patients. Though that may seem like a simple observation, many dental practices find it easier said than done. Here we discuss a few key factors that may help you strengthen your marketing—a major piece in the puzzle of bringing in new patients. If  you have struggled with your marketing, these are low cost things you can do to build up your patient base, which is especially important if you are considering selling a dental practice.

How Old is Your Website (You Have One, Right?)

What is the first thing you do when you are looking for any kind of service provider? If you are like most people, you Google it. Sure, word of mouth matters, but if a friend refers you to a lawyer or accountant, you’re still going to Google them. What pops up there is your first impression, so you’d better make it a good one.

The good news is that, in 2020, a good website doesn’t mean an expensive website. Sure, 20 year ago, businesses might have spent tens of thousands of dollars on a custom site. But, in those days, coders were less common than they are now and the programming languages were more difficult. Now, many websites are built off of templates and the learning curve is much faster.

The template model is good for dentists because that means you won’t be paying anyone to re-invent the wheel. Chances are you can find someone with a speciality in medical office websites who already knows what you need and how to organize it. Since the early days of the internet, there has been a lot of work done to understand how consumers find and respond to online information, what they are looking for, and what is most effective for communicating that information. The templates are designed to deliver to consumers what they want in the simplest way.

What if you already have a website? What if you spent $15,000 on it ten years ago? Well, we’re sorry to say that your website is out-of-date and that is the impression you’re giving to new patients—one of being out-of-date. They may wonder what else about your practice is not being kept up to date. Equipment? Techniques? Will a dentist that appears stuck in the past give them the best care? If prospective patients don’t like what they see, they’ll quickly move on to someone else.

If you are considering selling a dental practice in the next five years or so, you also don’t want to be marketing something that may look like a dinosaur to a young doctor. You’ll be well-served to make the online “face” of your practice one that is with the current state of the art. 

Your Social Media Presence Should Be Social (You Have One, Right?)

This one is a little tricker because it requires more ongoing work (not a lot, though) from your office. The good news, however, is it doesn’t have to be you. Chances are you already have someone in your office that is active on social media, meaning they already have an innate understanding of how the platforms can be leveraged. Once you identify that person, have them set aside a little time a couple of days a week to take pictures and post to your accounts, and some time each day to respond to any questions or comments.

Why is this important? Do you know how much Facebook, the biggest social media platform, earns from advertising? $17.4 billion in the third quarter of 2019. They made that in three months! And it was a 28% increase from the same quarter of 2018. Why are they making so much money from advertising? Because this is where the eyeballs are. 

Note, however, that we’re not telling you to spend on Facebook ads. We’re saying your prospective patients are on Facebook so if you don’t have a Facebook page for your practice, set one up today. And if you have a Facebook page, keep it updated. Have someone actively posting to it and interacting with anyone who follows you or posts questions or comments. You should also do the same with Instagram and Twitter, the other two big platforms.

The next question you may have is what to post about. The answer is anything good that happens related to your practice: new staff members, patient success stories, doctor profiles, doctor or staff achievements (whether related to dentistry or not), holiday costume contents, sponsored contests, community outreach. Literally anything that reflects well on you, your staff, your patients, or your community.

Be sure to link your social media accounts to each other and your website. Make it easy for patients to find you and information about you. Patients might go to your website first to find out about the practice, but many will also look at your social media to get a better sense of the personality of the practice (you can be a lot looser on social media than you may want to be on your website).

Again, if you are looking at selling a dental practice, having an active social media relationship with your community can be a big selling point in why the goodwill of your practice is worth what you are asking for it. It shows you are built in to your community and have fostered a strong relationship with the people you serve.

Many people are drawn to dental offices whose online presence is full of smiling patients and friendly staff. This can be done with only the cost of a few hours each month but can be surprisingly effective.

Don’t Write Off Traditional Media Just Yet

Much ink has been spilled over the death of traditional media (TV, radio, print, outdoor advertising). To paraphrase Mark Twain, the reports of its death have been greatly exaggerated. 

The key to effective advertising is maximizing impact. You’ve got to cast your net wide enough to capture your intended market but not so wide as to be wasting dollars on people who will never consider your business. For instance, a poorly placed billboard might not get you any patients while a nationwide television ad would never be justified in terms of cost per new patient. 

Local marketing experts in your area will know what kinds of ads the patients you are looking to advertise to will respond to. It may be that you have a newspaper in town that many people still read for local news. Or maybe there is a busy thoroughfare where thousands of commuters see billboards as they creep through daily traffic. If these kinds of means are still effective for small business in your area, don’t write them off.

Also, consider what your competition is doing. If they’re sinking all of their resources into online advertising, you can take advantage of the gap in traditional media, if it’s effective in your area.

Keep it Simple

Marketing doesn’t have to be hard. Marketing doesn’t have to be complicated. And marketing doesn’t have to be expensive. These suggestions are all easy, low cost ways that you can see a significant impact without any major investments of time or money. 

Considering Selling a Dental Practice? We Can Help!

Here at ddsmatch Southwest, we are dental practice transition specialists that focus on finding the right doctor for your practice, one who will honor and build on the legacy you have established. If you are considering selling a dental practice in the next five years, we will, with no obligation, provide you with valuable tools and advice to plan and prepare your practice for a smooth transition. Even if you aren’t considering putting your dental practice for sale, we can refer you to marketing experts if you’d like more information or help in that area. Contact us today and find out what we can do for you—it starts with a conversation!

Dentistry Named a Top Job; That’s Good News for Texas Dental Practices for Sale

In a recent ranking of professions by US News & World Reports, dentistry came in as the second best option, just behind software developers in its 2020 rankings. This is a step up from fourth place in the 2019 rankings. For dentists with Texas dental practices for sale, this is good news, as what is being offered is not just a profitable business, but a solid and rewarding career as well.

While that ranking is for general dentistry, professions throughout the oral healthcare industry fared very well. Orthodontists and oral and maxillofacial surgeons were both in the top ten of overall jobs (at four and nine, respectively) and in the top five of best paying jobs (with oral and maxillofacial surgeons at number three and orthodontists at number five). Dental hygienists came in overall at 24th, prosthodonists at 56th, and dental assistants at 66th. In the more specific category of health care jobs, dentistry came in at number one, orthodontists at number three, and oral and maxillofacial surgeons at number nine.

The criteria US News & World Reports relied on for their rankings started with which jobs would have the largest number and percentage of projected openings between 2018 and 2028, as determined by the US Bureau of Labor Statistics (BLS). Then, the publication ranked the jobs based on other criteria such as median salary, employment rate, ten-year growth, future job prospects, stress level, and work-life balance.

The Tangibles and the Intangibles

According to the BLS, dentistry has an expected 10,4000 job openings with a 7.6% employment growth. It also reported that dentists have a median salary of $151,850, up slightly from 2019 when the median salary was $151,440 (although this is down from 2016 when the median salary was $153,900)

Here in Texas, we have two cities where dentists’ median salary is the highest. Topping the list is Amarillo, where the median salary for a dentist is $279,920. This is followed by Longview, where the median salary is $275,530. This indicates it may be a good time to put Texas dental practices for sale as potential buyers may be looking to build their careers where the fields are fertile.

The top five is rounded out by Fond du Lac, WI ($268,920,  Reno, NV ($267,410), and Sebring, FL ($259,660). If you look at the mean salary, the highest amounts are in Delaware ($264,440), Alaska ($259,350), Rhode Island ($254,190), Minnesota ($227,280), and New Hampshire ($226,300). 

And, of course, the specialists can earn even more. Orthodontists and oral and maxillofacial surgeons earn a median salary of $208,000, while prosthodontists have a median of $176,540.

It’s not all about the money, though. Measurements of dentists’ flexibility in schedules and work-life balance were both found to be above average from all of the professions reviewed. Also, the upward mobility and stress levels were found to be in the average range. Meaning, you can have an average to above-average experience in the profession while earning a well above average salary.

How Well Does This Reflect the Reality of Being a Dentist

The answer to this question, of course, is that it depends. The US News & World Report ranking is encouraging for the future of the profession of dentistry. It is, however, based largely on statistics and does not really give a full picture of what it means to be a dentist. 

As your experience has probably shown, while you can earn a high salary, what isn’t always apparent is the cost of getting that salary. After all, in 2018 the average dental student graduated with a student loan debt load of $285,184. When coupled with a dental practice loan to start or buy a practice, debt payments can take a big chunk of your potential earnings. However, when viewed as an investment and properly organized, a smart doctor can service their debt and still enjoy a high income.

There are also many aspects to practicing dentistry that can provide satisfaction beyond just meeting career milestone goals or earning potential. A successful practice keeps the doctor busy all day, every day, providing a sense of satisfaction in the work accomplished. Also, the work being done is a kind that genuinely has a positive impact on your patients. It’s possible to look back at the end of each day, week, month, year, or career, and see how you’ve made peoples’ lives better. 

At the end of the day, the real value of Texas dental practices for sale is the goodwill that the practices have built in the community. This goodwill doesn’t come from how efficiently you’ve organized your practice in order to maximize production out of each of your chairs. It comes from the care you provide to patients and the relationships you form with your community through that quality of care.

ddsmatch Southwest Has Texas Dental Practices for Sale

ddsmatch Southwest are dental practice transition specialists with an expertise in finding the right match for New Mexico and Texas dental practices for sale. We help visualize your future, set achievable goals, and devise strategies to start you in the direction of your post-transition dreams, well in advance of your intended transition time frame. If you are considering transitioning your dental practice in the next five years, we offer a free, no-obligation Practice Transition Assessment. Contact us today and find out how we can help you achieve your practice transition goals.

Tap Your Hygienist’s Production Potential Before Putting Your Dental Practice for Sale

We recently posted an piece suggesting you set production goals to help maximize your earnings per day and hour as a way to boost your income both as a way to increase your profitability and to build value before placing your dental practice for sale. Relatedly, you can make the same adjustments with your practice’s dental hygiene production. 

In most practices, aside from what you produce, the only other major source of production are your dental hygienists. Some consultants recommend that you have a goal of having hygiene make up about 25% of your practice’s overall production. That’s a significant amount, but it is something that is achievable if it is well planned as part of overall scheme to create efficiency. Below are five suggestions for how to get more out of your dental hygienists.

1 – Patients Past Due for Hygiene Treatment

Who do you think will have a greater impact on patients overdue for hygiene treatment: your administrative staff members or your dental hygienist? We mean no disrespect to your staff members. They may be highly professional and capable people who excel in their capacity. However, they are not providers of clinical treatment. That is, they are not seen as having knowledge and expertise in hands-on dental care. The difference this makes to patients might surprise you.

You can leverage this in two ways. First, if your hygienist has time in their schedule (due to a gap or a no-show), they should have a list of patients ready to contact to encourage them to make an appointment. Second, they can also create a script for the administrative staff members to use, relaying a message from the hygienist about the overdue treatment, encouraging them to set an appointment. This script might focus on the importance of regular, ongoing hygiene treatment that will enable them to keep their teeth for their lifetime, one that educates about dental care and periodontal health in a positive and helpful way.

2 – Elective Procedures

As you know, your dental hygienists have more time with your patients than you or any other member on your team. Over the last several years, there is more of a focus in our society on whitening and, among adults, straightening of teeth. While these procedures may not be clinically necessary for ongoing oral health, many of your patients may find an appeal in these procedures. Many practices are underperforming when it comes to cosmetic procedures, implants, and adult orthodontics. You can leverage the time your dental hygienists have with your patients to offer and discuss these options. 

Additionally, as you grow closer each day to the time when you will place your dental practice for sale, building this into your practice will be a selling point—having employees who are invested in and critical to increasing the practices overall productivity.

3 – Ongoing Treatment Reminders

You probably have a number of patients to whom treatment plans have been suggestion but that haven’t accepted your recommendations or haven’t completed the treatment. Too often, dental practices will provide a treatment plan recommendation and then simply leave it to the patient to decide. Consider, however, how many of those patients would be more likely to accept or complete the treatment plan with follow-up conversations?

Presenting a treatment plan is often not just a two-step process where you present the plan and the patient opts to accept it or not. There may be myriad factors as to why a patient chooses to accept or complete a treatment plan. The best way to boost your case acceptance rate is to have, in essence, an ongoing conversation about the treatment plan.

Your hygienists should make it regular practice for each appointment to review the patient’s file, see what treatment has been recommended but not completed, and to discuss that with the patient. Even if the patient’s reason is related to the annual renewal of dental benefits, it’s important to remind them of what is needed and why it is to their benefit. This way, you can leverage the time your hygienists spend with patients.

4 – Periodontal Diagnostics

Whether you know it or not, periodontal disease is a widespread problem, affecting about 65% of all patients, yours included. Most people don’t understand what it is, really, even though they may be experiencing its symptoms (such as red, swollen, or tender gums; bleeding when brushing; bad breath). This lack of awareness is an opening for your hygienists to be recommending care through a periodontal diagnostic program. If you create the program and train your hygienists on how to educate patients, you’ll be providing them with additional level of care and using your hygienist’s time to get closer to that 25% production goal. And, again, if you have a program like this being boosted by hygienists, that will only help you when you decide it’s time to place your dental practice for sale. 

5 – Dental Hygienist Assistants

You have employees for a reason: you simply don’t have time to do everything and, because your time is valuable, you need to delegate the simpler tasks to someone with less training, skill, and experience. The same can be true for dental hygienists. 

Not everything your hygienists are doing needs to be done by a hygienist, such as preparing rooms for treatment, developing x-rays, and performing other administrative duties. If you run your hygiene program like you run your work— having hygiene appointments in multiple chairs with an assistant doing prep work while the hygienist moves between chairs performing their work—you might be surprised at how much more productive it can be. If you have a high volume practice and available chairs, you might be able to increase your hygiene productivity by as much as 33%. Again, imagine how this will look to prospective buyers when you are ready to put your dental practice for sale

Selling a Dental Practice? We Can Help

ddsmatch Southwest are dental practice transition specialists committed to helping doctors meet their practice transition goals. If you are considering transitioning your practice in the next five years, we offer a free, no-obligation Practice Transition Assessment during which we will review with you the current, local dental practice transition market, best transition options for your practice, physical and image improvements to increase value, potential practice investments, and present and future staff integration. Contact us today and find out what we can do for you!

You’re Buying a Dental Practice—Do You Know How to Run It?

Buying a dental practice is an exciting time in a doctor’s career, a point where you are standing on the cusp of achieving your goal of owning your own practice and being your own boss. And while your future is bright, there are a lot of responsibilities that come with buying a dental office for sale, many of which don’t involve dentistry. In this article we’ll provide some suggestions on how to manage your separate roles as a clinician and as CEO of a small business. 

It’s not uncommon for doctors to express frustration about the need to switch back and forth between these roles. This is understandable as they involve two very different sets of skills, one of which, as a clinician, you have trained for and have experience with. You know how to do that job. The other, as a business owner, you probably don’t have the same kind of formal training and experience. This can make the transitions feel awkward and uncomfortable. And, at the end of a long day, you may feel like you don’t have any gas left in the tank.

Don’t Work On Your Business While Working In Your Business

What does it mean to work in your business? That is when you are practicing dentistry and directing your team with matters relating to patient needs, treatment plans, and so forth. What is working on your business? Well, that’s the business side. This is when you’re doing things like looking at the numbers (production, collections, new patients, referrals, case acceptance rates, costs, etc.), dealing with employee and employment concerns (evaluating your employees, making staffing decisions, hiring, firing, fielding complaints, etc.), making decisions about marketing, and just generally making sure the lights stay on. You might like one better than the other, but they are both essential to the success of your dental practice.  

The simplest approach is to keep these two roles separate. You can do this by setting time aside each day to focus on the business side. For instance, after buying a dental practice, you can let your staff and scheduling coordinator know when these hours will be, that appointments shouldn’t be scheduled during these times, and that is when you’ll address business related concerns with staff. You can even set them outside of regular business hours so as not to impact your production time. 

The benefit of this approach can be twofold. First, you get the benefit of focusing on one thing at a time, which typically makes it easier to be more productive with your time. And, second, if you schedule it first thing in the morning, you can get the business stuff done first and spend the rest of your day being the clinician. 

Assuming you have someone doing your payroll and other accounting tasks (and we definitely recommend outsourcing this— if your accountant doesn’t provide this service they can definitely recommend someone who does), you shouldn’t need much more than four hours a week (maybe a little more to account for a learning curve in the early days after first buying a dental practice). Also, having designated and focused time to work on your business gives you space to consider the state of your practice and where you’d like to grow. 

Use Your Team Members

A common practice is for team members to begin each day with a morning huddle to review what’s scheduled for the day. But you can also use the morning huddle for business matters that may be better delegated to team members. Remember, you are the CEO. As an executive, it’s part of your job to assign tasks to the employee best suited for it. 

It does require a bit more additional thought and preparation from you, but it will pay off in the time that you will save overall. Let’s say you notice that you are having gaps here and there in your appointments. Note that and then compare your days and weeks with your production goals. This may be an area you can get your team to help with. 

First, you can ask your scheduling coordinator to watch for these gaps and present them to the team during the morning huddle. Second, ask the team to consider your patients and whether those gaps can be filled. Is there someone overdue for treatment? Have the appropriate staff member start making calls to get those openings filled.

The morning huddle is simply an opportunity you have to get your whole team communicating. By involving them more in the business side matters, you can increase their involvement in more areas of the practice, which can help them have a vision of their role on the overall organization. This way they may feel more integral to the success of the office, more valued, and, thereby, more invested in helping your practice succeed.

If you have an office manager, it may also be worthwhile to set aside time each day to check in with them before either of you leaves the office. This helps you keep your finger on the pulse of what’s happening throughout the office while you are busy with patients. You also should have a separate designated time with your office manager to review anything that may require your direction.

Thinking of Buying a Dental Practice? We Have Dental Practices for Sale in Texas and New Mexico

At ddsmatch Southwest, we typically represent doctors with dental practices for sale, in Texas and New Mexico. But we believe in working closely with those buying a dental practice to make sure there is a good fit between the seller, the buyer, and the practice. We believe a good deal is one where everyone walks away happy: the buyer has confidence in the practice they’ve purchased and the seller has confidence in the buyer to continue and build on what they’ve established. If you are ready to take the next step in your career, check out our available listings. It all starts with a conversation, contact us today!

Four Steps to Increase Production Before Putting Your Dental Office for Sale

It’s 2020. A new year, a new decade, and a great time to get your dental practice on track for its most successful period yet. To make that happen, however, you’ve got to have a plan and the sooner you get that plan in place, the better. Ultimately, the day will come when it’s time to put your dental office for sale and the time to start building value for that transition is now. In the meantime, you can enjoy the rewards that your increased success will bring.

There are different ways to measure success. It can be in increased overall production revenue (a good measure for a young or mid-career doctor). It can be in increased production per hour, leading to having to work fewer hours (this might be better for an older doctor who is looking to work less but maintain a steady income). Whichever measure you use, the following steps will work for any doctor who wants to increase earnings for their practice.

Step One: Make a Production Plan

First things first, you’ve got to have a specific plan that includes your ultimate goal and the steps along the path to reach it. For instance, if you want to reach $1.5 million in production, that will require you to bring in $31,250 each week (based on 48 work weeks in the year—you can, of course, adjust that for more or less time off). Breaking it down even further, if you work 40 hours each of those 48 weeks, this will mean you need to be producing around $721.25 each hour you work.

Next, how do you do this? First, you should set daily production goals and work with your scheduling coordinator to arrange appointments that will enable you to meet those goals. Their job is not just to keep the chairs filled but to do so in a way that maximizes your production per hour. This means that they need to be trained on each procedure you perform, how long it takes, and what it’s value is in production. It’s like a jigsaw puzzle, figuring out which piece goes where to create the overall picture. If all your scheduling coordinator is doing is fitting patients into open spots on the calendar, you don’t end up with the picture you want, just a jumble of pieces. But when they know how to look for the right spot to schedule the right procedure, the vision of your production goals will come into view.

Second, you should have a designated treatment coordinator who is effective at presenting the treatment plans for all of the producers in your practice, and they should be able to meet, at a minimum, an 85% acceptance rate. Determining and providing clinical treatment is your skill. This is differentfrom being able to help patients understand the importance of accepting the treatment plan. You want the best person for each job. This team member should be able to spend as much time as necessary sitting face to face with your patients, to answer questions, resolve concerns, and address any perceived barriers to acceptance of the plan. Your treatment coordinator should also follow up with patients after the initial presentation as part of their regular responsibilities. This is how you get more patients accepting treatment, scheduling the next appointment, and boosting your production.

Related to increased reliance on your staff is raising your overall customer service standards. When your patients feel seen, heard, and well cared for in every aspect of their experience with your office, that boosts your reputation and increases your word of mouth referrals (and, remember, when you put your dental office for sale, most of the value falls into the nebulous category of “goodwill,” and you will be well served by being able to demonstrate the goodwill you have built through superior customer service). You can become known as the best doctor in town when your patients feel that they are cared for. This leads us to the next step.

Step Two: Remember the Patient’s Needs

Too often when patients are presented with treatment options, the plans are presented on an assumption of what the doctor or office believes the patient can afford. This is the wrong approach. It assumes the best option to present to the patient is the one the doctor is betting the patient is most likely to accept. This puts the doctor’s interest (in getting the patient to accept further treatment) above the patient’s (in getting the best treatment for them). Your office should be presenting all available options to the patient and letting them choose for themselves.

This approach, however, involves a little more time and patient education (which is why it’s best to have a designated treatment coordinator, who can put in that time). Your treatment coordinator should present all available treatment options and address the patient’s immediate needs, their long-term needs, and any other treatment options that the patient may have asked about. When patient’s understand what is available and how the options do or do not address their needs and desires, they are more likely to accept further treatment. Its empowering them to make a choice in their best interest, rather than have only one option dictated to them.

As stated, however, this requires time and education. Patients have to be informed about what the treatment options are, what they entail, and what clinical issues they will address (and what they won’t). When patients are shown what is happening in their mouths (with x-rays or other images), and when they learn about the conditions you’ve diagnosed (perhaps through videos), they have a much better understanding of why you are recommending a course of treatment. When they know what you know and they understand its importance, leading to a higher acceptance rate.

Step Three: Review Your Production Reports for Indicators of Problem Areas

Do you know how much money is owed to your practice right now? If not, you should be reviewing your practice reports carefully, looking at things such as your accounts receivables and outstanding insurance claims. You should know how much is owed, and from who, in order to better be able to collect and perhaps make changes to resolve any consistent problems in these areas. You also need to review your production, new patient flow, and patient retention for any recurring issues that need to be addressed.

If you have associates or other doctors working in your office, you should review these reports for their production, as well as your hygienists. If your software allows for production forecast results, use that tool to identify slow periods in production that may lead to shortfalls. As noted above, a key to increasing production is maintaining a consistent level across all providers each hour of each day of every week throughout the year.

Reviewing these reports with your team members will also help them to understand how each part of the practice impacts the others. That is, the success of each person in your office helps the other team members do their job better. Think of rowers on a crew team: maximum efficiency comes from precise, coordinated effort. One person out of sync will slow everyone down and require them to work harder to make up the shortfall.

Additionally, having this kind of detailed sense of your office’s production, and having all of your team members working together, will be a great aid when you put your dental office for sale. Prospective buyers will pay more for a fine-tuned machine than they will for something that needs work. 

Step Four: Reduce Your Overhead

If your practice is doing well in an overall sense, you may not have felt the need to look too closely at your overhead costs. If it isn’t broken, don’t fix it, right? Sometimes, however, we don’t know something is broken until we examine it. 

What is reasonable overhead for your practice is going to be determined by a number of factors that are specific to your practice. That said, a good rule of thumb are the industry standards. Use these as guides and review your costs and see how close you are. If you are too far off these benchmarks, look at those expenses to see what’s happening and how they can be reigned in.

For the dental industry, the standard is about 55% of your collections. That means you keep 55 cents in profit for every dollar you make. To break it down further, here is about where you should be with specific overhead categories:

  • Payroll: 20%
  • Laboratory: 10%
  • Rent: 5%
  • Dental supplies: 5%
  • Payroll taxes and benefits: 3%
  • Office supplies: 2%
  • Miscellaneous: 10%

If your overhead is out of bounds with these standards, make the necessary changes to reign it in. You can then take the money you’ve saved on overhead expenses and reinvest it in things that you may have thought you couldn’t afford, such as technology that will increase your productivity and attract patients.

If You are Thinking of Putting Your Dental Office for Sale, We Can Help!

Here at ddsmatch Southwest, we are dental practice transition specialists with an expertise in counseling doctors on how best to position their dental office for sale. We’ve developed a Practice Optimizer to help doctors plan and prepare for their future. If you are considering transitioning your dental practice in the next five years, contact us today and find out what we can do for you.

The Advantages of Dental Associateships and Buy-Ins

It’s a great time to be a dentist that owns their own practice. Whether you are currently in a dental associateship looking to expand your interest in a practice, or an owner looking to sell or expand, a buy-in—also known as a minority interest transaction—can work to the advantage of both the buyer and the seller. 

From the point of view of the owner-dentist, a dental associate buy-in can be a good plan for a dental practice transition. Rather than just bringing on an employee, a dental associate becomes a partial owner. The benefit here is that the junior dentist has a greater investment (both literally and figuratively) in the practice. They are more likely to stay with the practice and work harder for its growth and success. By having more at stake, they will have more of a long term view. Also, when it comes time for the senior dentist to retire, there is already someone settled in the practice, who knows the staff, the patients, and the community. It makes for a smoother, simpler transition. By going through the process of hiring an associate and allowing them to buy-in, you are essentially hand-picking your successor.

Additionally, by creating a partnership agreement between the senior and junior dentist, the senior dentist is assured of the continuity of the practice in the event of their death or disability. Partnership agreements typically require the surviving partner to buy-out the other, meaning that the practice will continue. Without such an arrangement, it’s possible that the practice—something a doctor has worked to build over many years—may end up closing its doors without any of its value being transferred to the dentist’s family.

For the associate, a buy-in can be a tremendous opportunity. They get to share in the benefits of practice ownership, not just be a worker that clocks in and out and collects a paycheck. They get to learn how to manage and grow a practice, but do so under the tutelage of an experienced practitioner and business owner. It provides the opportunity to learn real world skills and business acumen that isn’t taught in dental school. Essentially, the associate gets to learn how to own a practice without having to take on the full risk of ownership.

How it Works

The dental associateship buy-in timeline usually takes place in two parts. First, the associate would buy a minority interest in the practice. 10-20% is a good starting point and is typical for these arrangements. A smaller percentage is beneficial for these types of partnerships because this will be a trial period for both parties. If it turns out to not work for whatever reason, it will be a lot easier to end a partnership that only involves 10-20% rather than half, most, or all of the practice.

The second part, then, is the complete buyout of the senior dentist’s remaining interest. This would probably occur when the senior dentist decides it’s time to retire, but, as referred to above, could be accelerated by the death or disability of the senior dentist. Although such instances are not common, its best for both parties to carefully consider what they would want to happen in such circumstances before finalizing a buy-in agreement, just to be sure this is a path they want to go down together.

After the junior dentist has purchased an initial stake in the practice, generally staff and patients take that doctor’s role more seriously than if they were simply an employee for hire. Although the junior partner is not on par with the senior partner, there is a clear difference when they have bought into the practice (literally and figuratively). Staff will view them differently, especially knowing that the junior will become senior one day. And when that day comes, it can be a more seamless transition than if a stranger is brought in one day and introduced as the new boss. The associate will have had ample time to earn the confidence of the staff and patients.

The Best Partnerships are True Partnerships

There is no doubt that a dental associateship and buy-in is a serious commitment by both parties. It requires mutual respect, open communication, and a solid legal agreement. The most heavily negotiated part of buy-in is not the purchase agreement, but, rather, the partnership agreement. Both parties must be clear on their expectations and those expectations must be aligned for it to work. 

These documents can be very detailed and technical. Whichever side you are on, you will need an experienced attorney to negotiate on your behalf and provide expert counsel on such things as voting rights, management responsibilities, CEO compensation, withdrawal provisions, personal guaranty requirements, matters requiring unanimous consent, deadlock provisions, drag-along rights, required chairside responsibilities, and several other issues.

You should be carefully considering each of these issues, along with the others raised by your attorney. And don’t just considering them in abstract, but within the context of a very real long-term working relationship that you are taking on. Unfortunately, not all of these partnerships work out. Most do, however, you will be well served by not going in blindly or with rose-colored glasses. As with any relationship, business or personal, If you proceed with good faith and your eyes open, you greatly increase your chances for success.

ddsmatch Southwest Can Help You with Right Dental Associateships

ddsmatch has been successfully connecting the dentist’s present with their future for ten years. Recently, we’ve partnered with ZipRecruiter to leverage their proven employment solutions to expand your options, along with the continued support of our team of professionals, and the thousands of dental associateship candidates on our website.

At ddsmatch Southwest, we focus on dental practices in Texas and New Mexico. If you are interested in adding a dental associate, or are considering transitioning your practice, contact us today for a free consultation.

Start Planning for Retirement Before Selling a Dental Practice

It’s never too early to start planning for retirement. As dental practice transition specialists, we here at ddsmatch Southwest know that selling a dental practice is often not enough, on its own, to support a dentist and their family through the period of retirement. Proceeds from the sale are significant, indeed. But consider, if you are accustomed to earning $200,000 or more a year from your practice, selling it for $1m will only support your lifestyle for five years or less.

If your practice consistently reports high earnings, it’s a good time for you to start an employer-sponsored, qualified retirement plan. In addition to good planning for your future, you can do it in a way that will also save you money on your yearly tax bill through deferred compensation.

The Devil is in the Details

First, you will need a dental accountant. The ability to maximize your retirement savings and minimize your tax liability is going to require an accounting professional with an expertise in your business. Using a general CPA might seem like it will be cheaper, as they may have lower fees. However, in the long run, what you save—both in your retirement accounts and from lower tax bills—will make a dental CPA specialists worth the extra costs.

The reason for this is twofold. First, you need a CPA who understands your business in the most detailed way. If you are the only dentist in your accountant’s portfolio, then you are paying for their learning curve. And you can’t be confident that they are picking up on and correctly incorporating all of the details that are specific to dental practices.

Second, you need a CPA who has a functional understanding of the full panoply of retirement plans, not just the most common ones (such as the ones you, as a non-accountant, can think of off the top of your head). Do you know the difference between a defined contribution plan and a deferred benefit plan? That difference could mean savings in the amount of hundreds of thousands of dollars. The specialist is worth the extra expense.

Is Your Practice Right for a Defined Benefit Plan?

Do any of the following apply to you?

  • Are you nearly 50 years old or older?
  • Are your earnings consistently on the higher side?
  • Do you have a relatively young staff?
  • Do you employ a high number of specialty employees (i.e. hygienists)?

If any of these apply to you, a defined benefit plan might be a good fit. Consistent high earnings are important because these types of plans are based on formulas. With a deferred contribution plan, you have a maximum contribution, set by law, for your allowable deductible contribution. If you can save more, with higher tax savings, through a defined benefit plan, you should be making use of one. However, you need to review your financials with a dental CPA to be certain.

Also, if you are nearing 50 or older, you should be considering what position you want to be in when it comes to selling a dental practice. The better prepared you are now, the better prepared you are when that day comes (especially if it comes sooner than you think because of an unexpected life change).

Here’s How it Works

If you paid yourself $300,000 dollars in salary and paid your taxes on those wages, this can be essentially the same as claiming $150,000 in salary and your business organization contributing $150,000 to the defined benefit plan as a deductible contribution made on your behalf as an employee of your business. This would save you money on your state, federal, and Medicare taxes for the first year you claim it (even if you wait until the very end of the fiscal year) and every subsequent year, as you would only be taxed for the $150,000 claimed as salary.

If you are paying close to 50% in taxes, considering the double Medicare tax as the owner of the business, and the extra Medicare tax on earnings above $250,000 for a married couple filing jointly, this can translate into at least $75,000 each year that you will save in taxes. Instead of paying that to the government, you are paying it into your defined benefit plan for your retirement. This means that half of your $150,000 retirement plan contribution is being made of tax savings.

How this will play out for your specifically is dependant upon a number of factors, a major one being how you have organized your dental practice (as an S-corp, LLP, LLC, etc.). That factor, after consultation with your dental CPA, can be combined with other methods of savings to fund the balance of your retirement account. 

Finally, a defined benefit plan, like most qualified employer-sponsored retirement plans, are immune from creditors. Regardless of what happens after you set it up, the contributions will appreciate without being taxed until the funds are disbursed, which will likely be after selling a dental practice.

What’s the Downside?

Of course there is a downside. An employer-sponsored defined benefit plan is different from other retirement funds because the employer knows the formula calculating the benefits ahead of time. This means that if there is a funding shortfall (due to either faulty assumptions or poor investment returns), the employer is legally obligated to make it up with a cash contribution. As the owner of your business, this would mean you would owe yourself the difference out of your business’s earnings.

Because of this potential liability, it is essential that your carefully consider your options after a thorough consultation with an experienced and reliable dental CPA.

Selling a Dental Practice? We Can Help

Ddsmatch Southwest are dental practice transition specialists committed to helping doctors meet their practice transition goals. If you are considering transitioning your practice in the next five years, we offer a free, no-obligation Practice Transition Assessment during which we will review with you the current, local dental practice transition market, best transition options for your practice, physical and image improvements to increase value, potential practice investments, and present and future staff integration. Contact us today and find out what we can do for you!