Finding your Ideal Practice (A guide for new buyers)

Drew Phillips, CPA | CFO Advisor   You have waited a long time to realize your dreams of practice ownership. You have read everything you can get your hands on, listened to countless podcasts, met with mentors and dental classmates that have already taken the plunge into ownership, all to hopefully gain a leg up in the buying process. The more you read and listen the more you begin to realize there is to learn and the feeling of being overwhelmed or uneasy about the buying process may...Read More

May is Disability Insurance Awareness Month

Did you know that May is Disability Insurance Awareness Month? Disability insurance is often the forgotten part of securing your financial picture. After all, who likes the idea of potentially paying years and years for a product that may never be needed. However, this coverage becomes essential should you be unable to work due to injury or illness. And for a dentist or dental specialist, because motor skills play such an important part in your ability to your job, having adequate protection is...Read More

Associate Pay for Invisalign

This article addresses two factors related to Invisalign: Should I offer it in my general dentistry practice? How should I pay an associate that does Invisalign? Should I offer Invisalign in my general dentistry practice? Many of our general dentists are asking us about Invisalign.  Should they introduce it into their practice? Our answer is this: Invisalign may be profitable for you. The answer is determined by how deep of a plunge you take with Invisalign, and whether it fits within your...Read More

Pitfalls of Buying a Satellite Office from a Multi-Office Practice

As we’ve written here before, we rarely encourage doctors to buy multiple offices.  The reason for this is the number of failures we’ve seen in the added offices.  And eventually these failing satellite offices go back on the market while the multi-office practice owner retreats to her/his strong “home base” office.  Deal-seekers, this is a good way to get a discounted office, but there’s a reason the price is likely low.  Here’s what to look for:   1.Financial...Read More

To entertain or not to entertain…

The Tax Cuts and Jobs Act implemented changes that were enormously beneficial for our clients in 2018.  The basic condensing of tax brackets and lowering of just about all tax rates, as well as the vastly improved AMT exemptions, proved to lower the marginal tax rates for a large majority of our client base.  The implementation of the Qualified Business Income Deduction also served to lower the amount of taxes paid by many.  But before I sing the bill’s praises too loudly, I must mention...Read More

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

The Ultimate Sophistication is…..

Pop Quiz Doc. What was it Da Vinci Said About Sophistication? Well, I can’t give you the answer just yet, but let me preface it. Compare these two doctors: Alright, here’s the answer to our little quiz: The ultimate sophistication is simplicity – Mr. Leo DV My examples above aren’t made up. The data is clear. Those doctors with a simple financial structure and healthy practice progress toward financial independence faster. And, doctors that keep it simple, tend to have less stress....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
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