The
dentist is willing to take $335,000 down and lease equipment for $50,000. The
practice broker is not very happy and he demands the seller to pay commission
on total $385,000. The seller is backing out.
dentist is willing to take $335,000 down and lease equipment for $50,000. The
practice broker is not very happy and he demands the seller to pay commission
on total $385,000. The seller is backing out.
The office has 5 ops, paperless, digital, gross production of $515,000, equipment
is 5-7 years old. The dentist had this practice for 12 years. It is an FFS/PPO
office.
If the doctor has had the
practice for 12 years, how is it the equipment is only 5-7 years old.
The dentist says he was out of the office for 21/2 months last year
due to health issues.
What does that mean? Was office closed for 2 months? What has production
been over the past three years?
The practice has approx 1,100 patients
Not
with $515k in revenue; maybe two-thirds of 1,100.
with $515k in revenue; maybe two-thirds of 1,100.
The practice
generates 12-15 new patients every month.
generates 12-15 new patients every month.
That’s
weak.
The dentist works 3 days only. The fourth day is booked when it is really busy.
I currently work at a busier office and would like to work five days initially
to pay all the debt.
weak.
The dentist works 3 days only. The fourth day is booked when it is really busy.
I currently work at a busier office and would like to work five days initially
to pay all the debt.
Find out the breakdown between dentistry and hygiene.
What would be a good price range to place an offer?
Not
enough information to know.
The dentist is expecting $385,000. Does this sound reasonable?
enough information to know.
The dentist is expecting $385,000. Does this sound reasonable?
Not
enough information to know.
enough information to know.
Does the
allocation of the practice price play a role in any way ?
allocation of the practice price play a role in any way ?
Yes,
though it’s way too early to even worry about that now.
though it’s way too early to even worry about that now.
You need to gather all the necessary information to do a proper assessment of
the asking price and the performance of the practice. THEN you can get into
structure of the deal, allocation, and all the other finer details of a
practice transition.
This first appeared on Dentaltown.
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