Starting your own dental practice is one of the most important professional decisions you can make. Finding the right opportunity requires diligence and knowledge on what is available and desired. Here are three key factors to consider when buying the right dental practice.
Type of Dental Practice
Choosing the right type of dental practice is crucial for your long-term success. Do you prefer to specialize? Are you more comfortable with a cash practice or one that works with PPO or HMO insurance plans? Knowing the type of practice that would best fit your needs or desires can help you better analyze opportunities for buying the right dental practice.
Visit each location in person and analyze the staff-to-patient flow. Inquire about the number of patients over the last 18 months. Assess the state of the equipment and space for future expansion. This can help you identify untapped opportunities for growth.
You will want to do careful due diligence when buying the right dental practice. When investigating a location, request and review financial documentation. Investigate financials for the current year and up to three years prior. Be wary of any long-term debt incurred by the practice or any trouble with vendors or creditors.
Negotiate Dental Practice Financing
Negotiating the initial price and financing is essential when buying the right dental practice. You may want to consult with a business advisor to go over financial figures before approaching a traditional bank lender. You will need to know the exact amount of the loan you need. The lender will also want to know how soon you can be able to pay back the loan prior to approval.
Ready to Buy the Right Dental Practice?
The process of buying your dream practice does not need to feel daunting. With Buy the Right Practice, you can learn exactly how to buy and build the right dental practice. This system guides you through every step, in order to avoid pitfalls and maximize profits. Book a consultation call today.
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