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

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

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

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

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

The bulletproof dental transition timeline for buyers

A dental transition is a daunting task for any buyer, let alone first-timers who make up the majority of buyers out there. Being a first time buyer, you’ve cut your teeth on the clinical side of dentistry and, through your Associateship, have hopefully picked up a thing or two on the business side of running a practice, but what about the transition? Where do you start? Who do you talk to? When? Not everyone has the luxury of associating with an aging Dr. looking to transition to them so...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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