Dentists are generally ambitious professionals wanting to succeed financially in life. Their education and determination sets them in good stead to achieve high results in all that they do.
Buying a dental practice is something most associate dentists aspire to and, between one third and one half actually will proceed with taking the plunge to become a dental practice owner.
Business ownership isn’t for everyone and success goes far beyond the ability to perform good dentistry. However, the skill of dentistry, whether that is in general dentistry or something more specialist like cosmetic dentistry, has a great capacity to create a financially secure future for you and your family.
The opportunity to buy a dental practice often presents itself without you having to look too far.
If the opportunity doesn’t land on your plate though, then seek the practice that you feel fits your style as a dentist.
The first thing to review is the financials for the practice, ideally for the past three years, as well as a dental practice valuation, if it is available.
This is as important as reviewing the business finances, as it is essential to know that your business will meet your personal financial expectations and needs.
Commercial finance lenders look not only at past data but also at future potential. A Financial Forecast is a highly valuable tool to assess how a business could perform given variable factors. It’s best practice for you too, as it will ensure that buying this particular dental practice is the right decision.
Before making an offer it helps to have secured commercial finance. It puts you in a better position to negotiate.
Once the dental finance has been agreed in principal you can then properly start negotiations.
For example, is the practice owner going to stay? If so, under what arrangement? What date will the reigns be handed over?
Start to learn all the new skills to be a dental practice owner!
Of course, you may already own one or more dental practices and this process could be all too familiar to you. Looking at your practice portfolio as a whole is always advisable.
The cost of buying a dental practice varies significantly between practices. Rarely are they under £100k though and most will be priced between £500,000 and £1 million.
It’s a lot of debt and a lot of commitment so you want to ensure you are getting the value for money you deserve.