I was interviewing with a dentist for an associate position which was advertised for an associate to become a partner later on. After talking, it seems the dentist actually wants to get rid of the practice as he owns another much nicer practice which is doing very well and has lot of other businesses to take care of. He bought this practice from the bank as it was a foreclosed and then redid the entire practice, put in nice Sirona chairs, has 3 fully equipped operatories and another room which is plumbed for 2 more. I think the entire area is 1700-1800 sq ft. Has a pano and all digital x-rays and digital charting. He said that initially he was looking for someone to just work for the practice but now he doesn’t have time for it and possibly wants to sell it off for 150K.
Its right at an intersection and the visibility is good, BUT there’s a nice implant and general practice right next door which seems to be doing very well.
The practice is in nice area of town. The median income of people is around 160K in that area. I have no idea how many other dentists are there within 1 or 2 mile radius. Most likely a lot!!
I want to know how can I find the true worth of this practice? Who should I be talking to?And what are other things I should be asking the owner?Please guide me a bit!
The price of $150K has been quoted by the seller’s realtor. Should I be asking for the existing lease copies? Can the seller’s realtor give me info about demographics?
What you have here is a start-up situation with a small patient base, so you should approach it that way.
1. Is this an area you want to own a practice in?
2. What are the demographics?
3. What would it cost you to re-produce the same facility?
4. How long will it take you to re-create the space?
5. How many days is it open now? Will you increase the number of days?
6. What are the lease terms?
Depending on the demographics the practice right next door might not even matter. You said it was a nice location.