Reasons to Hire PracticeCFO Transitions even if you have an Interested Buyer

Proper Valuation: We have underwritten hundreds of practices and can help accurately estimate a practice’s true market value.  Having a 3rd party valuation expert involved helps both buyer and seller feel comfortable with the price and come to an agreement quickly.  In addition, our practice valuation expertise makes it easier for banks to underwrite the practice and stretch to achieve the highest possible loan amount (loan amount being synonymous with purchase price). Transition...Read More

Protecting Production

Let’s face it. Dentistry is can be rewarding, very lucrative and fun. What other profession allows you to hand out free toothbrushes and, at the same time, change the lives of thousands of your friends who visit you throughout the year?  But dentistry can also be challenging, tedious and strenuous, especially physically. Some of you out there will want to practice until the day before your funeral while some of you are thinking, “Can yesterday be my last day?”  Eventually though, the...Read More

COMMERCIAL REAL ESTATE | TIPS & TRENDS

LEASE NEGOTIATIONS: TWO SUBTLE THINGS THAT CAN COST (OR SAVE) YOU MONEY There are a number of business terms that landlords and tenants negotiate in a lease or renewal that on the surface seem very straightforward. Two examples of subtleties tenants should pay attention to during negotiations are concessions (e.g. free rent) and renewal options.   Rent Abatement: Even though it is currently a “landlord’s market”, property owners are generally still paying concessions such as free...Read More

A lender’s prospective: Putting yourself in the best position to acquire a practice: 

If you’ve been looking to acquire a practice, you’ve likely realized that we are still very much in a “sellers market”. This means that practice values are high & the competition with other buyers is stiff. The more proactive you are as a buyer will help ensure that you are in a position to capture the right opportunity when it comes along. As a lender that works strictly within the private practice lending space, I’ve been fortunate to be a part of hundreds of...Read More

Buy a Second Practice: How to Enrich Vendors, Get Really Stressed, and Make Less Money

Do you really like your banker, equipment supply rep, landlord, real estate broker, attorney, and accountant?  Do you like them so much you’d like to pay them even more while your fortunes decline?  Great.  Then open a second dental office. We hear about clients wanting to buy second offices or start a DSO (Dental Service Organization, e.g, Pacific Dental Services) nearly every day.  They go to a seminar, get excited, talk to friends who’ve done it, then start mapping it out.  The...Read More

The Lure of the Multi-Practice Model

As most of you know, the dental industry is experiencing significant changes. Among them are:  Decreased reimbursement levels from the providers, particularly the elimination of Delta Premier reimbursement rates to all new owners of GP and certain specialty dental practices, The rise of the Large Group Practice, such as PDS, Western Dental, Aspen, and others, The rise of small group practices consisting of 2-10 offices (these constitute 80% of the DSO/MSO space), Excessively high practice...Read More

The Ugly Truth About Buying and Selling Dental Practices

This article isn’t going to make some dental practice brokers happy.  But the story needs to be told so that the consumer has better information. Some, but not all, banks offer undisclosed “incentives” to brokers to steer clients to them. This incentive is typically around 1% of the loan amount.  $1MM loan = $10,000 check to the broker.  Therefore, brokers have little incentive to encourage Buyers to shop banks for loans, which Buyers should.  Nor do brokers disclose that they...Read More

4 Recommendations in Financing Your Way from Associate to Owner

If owning your own practice is a professional goal of yours, one of the tasks you are likely to encounter is securing the capital to do so.  There are many possible options to finance a practice acquisition, whether buying an existing one or starting one from scratch.  However, the three most common methods are: Bank Financing- Conventional & SBA loans Private Money Loans (family/friends/hard money) Seller “Carry Back” Financing- Selling practitioner offers to extend the loan to...Read More

The Benefits of Self-Renting

Tax advantages of self-renting If you’ve spoken to an attorney about owning your practice’s building, chances are they’ve advised the title to be held within a separate entity for asset protection purposes, specifically an LLC. And while there aren’t many one size fits all answers in the world of taxes, owning real estate in an LLC vs any type of corporation is really as close as it gets. That because when real-estate owned in a corporation is repurposed to a different legal entity or...Read More

Dental Practice Transitions: Stock vs. Asset Sales

The legal structure of a dental practice transition caries unique advantages and disadvantages to both parties which should be carefully considered and negotiated. Most commonly, they are structured as either an asset purchase or a stock purchase. An asset sale transfers some or all of the assets of the business in a series of transactions. A stock sale is the transfer of an ownership interest from the seller to the buyer, with all of its incumbent benefits—and liabilities. Since each...Read More
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