Buying a dental practice will be one of the most significant milestones of your dental career. Most dentists dream of having their own practice from the time they start their studies. The joy of seeing patients gain self-confidence and being responsible for the oral health of hundreds or potentially thousands of people are some aspects that would probably make you happy. Adding to this joy would be the knowledge that you are the owner of a dental practice.
Many dentists prefer working as an associate within a practice for a few years to understand how the business works before taking the step to buy a dental practice themselves. There are several aspects to consider before purchasing an existing dental clinic.
Let us help you with a guide to buying a dental practice. The first thing to remember is that it is a good idea to ask for professional help. You would need assistance from all sides – legal, compliance, licensing, finances, purchasing the best dental equipment, and more. You should always ask your peers, family, and friends (who have their own practices) for references.
Find The Correct Business:
You should not settle for the first dental practice you come across. Simply put, your needs and wants need to be aligned with the practice. You would also need to speak to the seller, figure out why they want to sell. While speaking to them, you may come across certain aspects that are worrisome – like a drastic drop in patients, licensing issues, the kind of services offered, and more. Beware of the loopholes, and go over each aspect carefully before investing. If you plan to purchase a practice that provides NHS treatments, you would need to contact the local NHS team to transfer the NHS contract.
Since you would be inheriting the business’s reputation and existing patients, it is best to be highly vigilant. You should also observe and research the demographics in the neighbourhood.
Take Control Of Stock:
Most dentists forget that the dental consumables and equipment are what makes a dental practice excellent. Dental instruments suppliers that provide good quality dental instruments will help keep patients healthy in the long term. Once the agreement is signed, you should immediately take control of the stock.
Once you and the seller have met and discussed the sale and terms of the agreement, it is best to have the business valued. Getting the practice valued from a professional will help discover hidden costs, loans, outstanding amounts, depreciation of dental equipment, the average loss of patient rates, and more. A good quality accountant and tax expert will help evaluate the business and its forecasts.
You should also ask the seller for the financials for the past three years. In case of any tax evasions, or movement of unexplained funds, you should ensure that you are safeguarded at all times. If there are too many issues with the practice, and it may not be fruitful in the long term, it is best to look for another one. When buying a dental practice, it is necessary to think logically to save time and money in the future.
Make an Offer:
If everything works out, you and the seller are in agreement, and the financials stack up, then it’s time to make the seller an offer for purchase. When making an offer, you should always follow the recommendation of agencies or professionals who specialise in buying and selling dental practices.
You may also want to replace a few things, change the interiors, and so on. You should contact the suppliers about service requirements and any existing service agreements. It’s vital that all equipment is clean, well maintained, and of excellent quality.
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