Considerations in Purchasing a Dental Practice

Deciding where to buy, how to go about it, and what kind of dental practice to purchase is a very important step in the career of a dentist. There are many essential decisions to make and key factors to examine as you search for the perfect dental practice that meets all of your needs.

Take your Time

Dentists must not rush into a purchase, and need to manage their expectations, understanding that the process will take some time. There is no need to hurry through important steps and be impatient. Buying the right dental practice for you matters more than closing a deal quickly when the first opportunity presents itself.

Choosing the Best Location

Where do you want to live? Being a practice owner is a big commitment, and being a part of the local community is a big part of that. Dentists who involve themselves in community events and organizations are usually successful as they are meeting people and networking all the while. A short to medium commute is an important consideration. Trading off time spent in commute with time spend amongst family and friends is not a bad deal.

Establish yourself amongst people you can relate to and people you can enjoy. Your practice and your interpersonal life will reap the benefit. Suburbs? Intercity? Rural? Consider where your competition is. This is a major indicator of your likelihood of running a successful dental practice. Will your spouse be able to find work? Will your kids end up in a school district that will nurture them and grant you piece of mind?

Choose the Ideal Practice for You

Lay out a working business plan. What size of dental practice do you anticipate? And do be careful to leave room for growth. Will you be establishing a specialized or generalized dental practice. Can you establish relationships with other practices in the community that can give you referrals? Do you prefer a five-day-a-week schedule with a long client list? Or maybe you’d prefer a smaller practice that allowed for more time off. These decisions affect your finances and stress levels–what can you reasonably make work?

Seek a Valuation

Get a CPA or CVA to perform a business appraisal on the proposed business purchase. Then you’ll have an informed point of view going into things. This is going to give you a leg up in negotiating your purchase.

Establish a Support Net

Just as your business cannot operate without the support of patrons, you’ll never realize your full-potential without the aid of experienced professionals. Trusted advisors can save you plenty of trouble. Here are a few people you’ll need:

  • A CPA or accountant who has experience guiding dental practices and other small businesses on reducing tax burdens and remaining tax compliant. You will want a Certified public accountant who does more than tax returns. You will want a cpa to advise you on how to structure your business entity (LLC, PLLC, Sole Proprietorship, S-Corp, C-Crop).
  • A Bookkeeper who is experienced in a bookkeeping software system such as Quickbooks. A certified Quickbooks ProAdvisor is a level of distinction in which a bookkeeper certified by the makers of Quickbooks as knowledgeable with the bookkeeping platform.
  • A legal professional to protect your interests and review documents.
  • A consultant also would likely prove valuable in the long run, helping you meet goals.
  • From the start, establish a relationship with a bank. Getting prequalified, and ready to finance, puts you in the know in terms of how much you can afford when putting in an offer.
  • An insurance rep will assess the value of your business and evaluate risk to see just how much coverage you will be needing.
  • It is a wise idea to seek the counsel of a mentor or business confidant of some kind, perhaps a veteran dentist who once went through the same process you’re going through now.
  • A marketing expert-preferably someone with knowledge of internet marketing.
Tax CPA John Huddleston is the author of the Self-employment Tax Guide which is a free resource for small business owners and the self employed for tax saving strategies and tax filing requirements. Mr. Huddleston has a law degree and masters in tax law from the University of Washington School of Law. He has been a guest tax expert on the radio. He advises small businesses in the Seattle Bellevue Tacoma & Everett area on various tax and accounting issues. His firm, Huddleston Tax CPAs, also provides tax preparation service, quickbooks consulting, business valuation, general accounting and bookkeeping service. Profile information on CPA John Huddleston and the CPAs employed by Huddleston Tax CPAs is available at the profile tab. Seattle CPA John Huddleston is a frequent publisher of tax saving ideas.

About adminjian

Speak Your Mind

Tell us what you're thinking...
and oh, if you want a pic to show with your comment, go get a gravatar!

  • Huddleston Tax CPAs / Huddleston Tax CPAs – Seattle Accountants
    Certified Public Accountants Focused on Small Business
    40 Lake Bellevue Suite 100 / Bellevue, WA 98005
    (800) 376-1785

    Huddleston Tax CPAs & accountants provide tax preparation, tax planning, business coaching,
    QuickBooks consulting, bookkeeping, payroll, offer in compromise debt relief, and business valuation services for small business.

    We serve: Tukwila, SeaTac, Renton. We have a few meeting locations. Call to meet John C. Huddleston, J.D., LL.M., CPA, Lance Hulbert, CPA, Grace Lee-Choi, CPA, Jennifer Zhou, CPA, or Jessica Chisholm, CPA. Member WSCPA.