Most dental practice buyers have the notion that the A/R (patient accounts receivables) aspect of buying a dental practice is fairly straightforward. You either buy the A/R or you don’t. However, I will cover three nuances concerning the A/R if you choose NOT to buy them. First, let’s briefly summarize the main two points of […]
Tag: buying a dental practice
Working Capital Strategies When Buying a Practice
When a dentist purchases a dental practice, one of their initial concerns after closing is the short-term & immediate cash flow needs. Generally, most dental practice transaction lenders who dwell in this arena of financing dental practice acquisitions will provide working capital to the buyer in addition to financing 100% of the purchase price. They […]
When should we freeze the practice price
Sometimes you, the associate, are offered an opportunity to buy into the practice in which you have been associating. You may be offered a fifty percent interest in a two-doctor partnership or a thirty-three percent interest in a three-way doctor partnership, etc. We all know that the price the associate is paying today will likely […]
What if Your GP Seller Sublets Space to a Smaller practice?
When you are looking to buy a practice, sometimes you may find a seller who sublets their space to another dentist. Maybe that sublet tenant is a general practitioner (GP) or a specialist; does it really matter? Do you care if that sublet practice stays or goes? Well, if they are a GP, I am […]
Buying a Practice When Seller Has More Than One Location
As multiple location owners have risen over the past five to ten years, it was a matter of time before we would start seeing more transactions where the buyers are looking to purchase one of the locations, NOT all of them. While this may not seem like a big deal or add any complexities, it […]
Owner Occupied Real Estate-Seller Won’t Sell Real Estate-Deal Breaker?
Often, when a dental practice seller also owns the real estate, they sell both the practice and the real estate at the same time (or at least that is their desire). At the same time, this ends up being an excellent opportunity for most buyers, that is, to buy real estate and become a real […]
Dental CPAs Q&A: Should High Labor Costs Disqualify a Practice Acquisition?
In this edition of Dental CPAs Q&A, I’m going tackle a difficult topic: labor costs. It’s a sensitive subject to bring up sometimes because most dentists I know think the world of their staff, and want to compensate them accordingly for all the work they do supporting and growing the practice. There are limits to […]
Dental CPAs Q&A: Comparing Start-Up vs. Buying an Existing Dental Practice
I was talking with a young dentist recently who was debating the pros and cons of opening her own practice and starting from scratch or buying an existing dental practice where the variables are known. For anyone who’s been in this position before, you know there’s no easy answer. There will be unknowns in both […]
When Is High Overhead a Good Thing in Dental Practice Acquisitions?
In one of our recent posts, I talked about how finding the perfect dental practice is nearly impossible. It’s more important to look for practices with good numbers and even better potential. The problem is finding those practices and sorting out the “good” numbers from the not so good, and assessing the potential future performance […]
Buying the Perfect Practice Is Impossible
Do you know a new dental school graduate – or are you one yourself? There are a lot of mixed emotions: relief, pride, excitement, and nervousness just to name a few. Dental CPAs has been down this road with many young dentists and while we don’t profess to know exactly what you’re going through … […]