Once you’ve decided to explore the option to buy a dental practice, there are a lot of things to consider in choosing the right firm. And not all of them will be in the numbers. Here are a few items to investigate that might not be in the financial statements.
Check out the building where the practice is located. Is it well kept? Is the appearance inviting and professional? Find out how old the structure is. If it’s more than 20 years old, you may find yourself dealing with a lot of old building problems like plumbing issues or structural damage. Drive around and get a sense of the general quality of the area. What kind of neighbors will you have? How will patients feel about coming to that part of town? Talk to nearby businesses and give the police a call to find out the crime history of the area. If you find what seems like a quick sale dental practice, the location could explain why.
Obviously you’ll want to know about your competition. Look through the phone book and find out how many dentists there are in the vacinity. Make sure you give yourself enough elbow room. But beyond that, you’ll want to find out how the local medical community takes to newbies. Doctor referrals can be valuable for building clientele, especially for transplants. On the other hand, doctors can be just as effective at steering patients away from you if they’re not happy to see an outsider. Have lunch with a few local doctors in an area before you commit to buy a dental practice.
Once you’re ready to take a closer look at a dental business, look out for changes you’d have to make in the first year. Is the charting system efficient and up to date? Will equipment have to be replaced or upgraded soon? Will you have to raise prices to stay profitable. If any of these items have been neglected too long you’re likely to experience some maintenance pains sooner than you may like. These costs should be reflected in the price of any for sale dental practice, but might not be if you don’t bring them up.
Human resources make up a great deal of the value of an office. People who know your equipment, filing systems, patients, when garbage day is, etc. will make your transition much easier if you can get them onboard with the change. If you sense an exodus of staff coming as soon as the owner retires, factor that cost in. Make sure you get along with your staff and do what you can to make the transition easy for them. They’re going to be the one’s training you on how to run your own business.
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Denver, CO 80220
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