Making a Dental Associate A 50/50 Equity Partner

Lately we
have been hearing from dentists and associates about the feasibility of creating a 50/50 partnership. Before this is contemplated there are some
questions to be answered and considerations to be weighed.
Here are a
few that we feel are important:
  •   Is your practice large enough patient
    base wise for two full-time doctors?
  •  Is the physical space larger enough
    for two doctors to work at the same time or will you be doing a split schedule?
  • Is your business house (the practice
    systems, processes, etc.) in order?
  • Is your personal house (any legal
    issues with either party such as pending divorce) in order?
  • How long has the associate worked
    with you and are you comfortable with his/her practice style?
  • Why did you hire the associate in the
    first place? Was it simply for coverage so you could cut back, or was it to
    have an in-house buyer when you are ready to retire?
  • How does the associate’s patient base
    compare to yours? In other words has the associate been given insurance based
    patients and smaller/routine cases compared to your fee for service bigger
    ticket cases.
  • Is the associate going to be a 50%
    owner immediately or over a period of years?
  • As the original owner allowing a
    50/50 partnership, are you willing to give up or share control of the practice
    you built?
  • Is
    the associate capable or willing to take over any administrative duties you
    currently perform?
  • Does
    the associate get along well with your staff and patients?
  • Has
    the associate added to the growth of your practice?
  • How
    will you share the new patients?
  • Does
    the new doctor perform any procedures that the seller doesn’t and vice-versa?

For further
information, please contact our friendly and wise Dental CPAs at (800) 772-1065