Dental practice finance

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

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.

Assisting with the set up, purchase and expansion of healthcare businesses is what we do. Contact Kevin, for an initial conversation to explore your options.
The opportunity.

The opportunity to buy a dental practice often presents itself without you having to look too far.

  • Perhaps the practice where you work is for sale.
  • Perhaps you know someone in the industry who is retiring or changing direction – the dental market is a small world!
  • Or you happen to stumble across an advert in one of your trade magazines.
Finding the practice.

If the opportunity doesn’t land on your plate though, then seek the practice that you feel fits your style as a dentist.

Review financial information.

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 the assess feasibility for the continuation of business operations, growth opportunities and if obtaining practice finance will be possible and affordable.
Assessing your personal finances.

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.

Prepare a financial forecast.

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.

Research commercial finance options.

Before making an offer it helps to have secured commercial finance. It puts you in a better position to negotiate.

  • Saroma will work with you to gather preliminary quotes and compare offers.
Start negotiations.

Once the dental finance has been agreed in principal you can then properly start negotiations.

Agree the details.

For example, is the practice owner going to stay? If so, under what arrangement? What date will the reigns be handed over?

Roll your sleeves up.

Start to learn all the new skills to be a dental practice owner!

Already 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.

Cost of buying a dental practice

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.

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