Some suggestions might include: If the layout of the dental practice is particularly effective, you may want to ask if the dentist was involved in the layout and design. Either way, work together to build an integration plan that ensures nothing falls through the cracks. How is the deal going to be structured to maximize tax savings? The buyer is too aggressive right out of the gate, making clinical changes that scare both the patients and the team. It usually means that they generate stronger cash flow. Here are six important questions to ask if considering selling to a DSO. Questions to ask when buying dental practice online. Contact us online and have a Henry Schein Professional Practice Transitions expert help take the stress and confusion out of dental practice transitions. Be sure to make the most of it. This sensitization exercise is a good way to understand the risk to your future cash flows. "They set you up for success from the start, " said Doublestein. Be specific about where you want to live and how far you are willing to commute to work. You may also want to hire a valuation specialist and an attorney who can create a purchase agreement and advise you on legal issues. If you are buying a practice outright, discuss how the current owner can help with patient retention and staff relations. Numbers are black and white, but it's the gray area that will make or break your transition.
Question 4: Are you running any personal expenses through your practice? You'll want to cover all these bases as you research these option. More importantly, be brutally honest with yourself. Make sure that the practice fits your goals and feels like a place where you can be successful. 9 Critical Questions You Need to Ask Before Buying a Dental Practice. By consulting with a dental attorney and by asking yourself the six questions above, you can help ensure that you are making a wise investment in your future. People go to their dentists to obtain dental care. There is more to a well-run practice than simply how much is collected each month.
If you want to learn the practice management side of dentistry, say so – and ask to be involved. Questions to ask when buying dental practice manager. Recent profit and loss statements. Will the bank continue to support you in the future with your growth objectives such as a practice relocation, addition of new operations or equipment, or purchase of an additional location/ patient base? The ADA Survey of Dental Fees (free to members) can help you see how the practice lines up with other local practices.
Here are the nine critical questions you should ask yourself, plus three tips for getting the most out of a buyout. You also want to make sure that the existing equipment is up to industry standards. A vision statement is not where you are today or even where you will be in the near future. Can you tell me about line 18 on your 2018 tax return? Simply put, it's important for the buyer to walk in the seller's shoes. Although an attorney will review all contracts, it is the CPA's job to analyze and report on whether buying the practice will be a financial success. How Will You Evaluate the Financial Documents? Make sure your practice can financially absorb those costs if you absolutely need to move. As always, try to put yourself in the seller's shoes. Key Questions to Ask When Buying a Dental Practice, Part 1 | Professional Practice Transitions. Because the definition of high quality of care can vary slightly from one dentist to the next, it is important to gain an understanding of how a practice operates before you sign a contract. We've talked a lot about the benefits of a cloud-based system, so you can read up on those on our site. Asking this question shows that you are invested in the success of the relationship and the practice. There are countless ways to structure these deals, so be acutely aware of the components in the offer beyond the purchase price.
This can be especially hard if a buyer comes in, finds that fees haven't been updated in years, and must quickly make changes. If the office is not rescheduling hygiene or avoiding cancelations, then you may have issues with the overall culture of the practice. Not because you're going to get every piece of information you'll need to make a final decision, but because this is your chance to make a good impression. "You want to see if the practice is growing or shrinking, " Doublestein explained. Six Questions Dentists Should Ask Before Selling to a DSO. They're looking for someone who will run the business they've worked to build, likely for the last several decades of their life. This is also an opportunity to gain insight into the team members' relationships with one another and the benefit packages that the owner currently offers. The question indicates you are there to listen and learn, not to confront. You should not have to convince yourself on your ability to maintain the cases the practice is currently performing. Can you afford the deal?
When you purchase a practice, you have to be willing to work hard, said Doublestein. Marketing is one of those things that takes trial and error.