A successful alternative to partnerships

November 30th, 2007 admin Posted in Practice buying, selling, partnerships or associateship No Comments »

Earl M. Douglas, DDS, MBAMy last article discussed the pitfalls of partnerships and buy-ins, which include loss of control, loss of marketability, and loss of value. These are consequences of converting a real tangible practice into intangible undivided interests. This article describes an alternative to buy-ins, providing the benefits of buy-ins without the risks and losses which buy-ins incur. Prior to considering any form of associateship, a practice must have excess production for an associate Read more [...]




Thinking of selling your practice ?

November 29th, 2007 admin Posted in Practice buying, selling, partnerships or associateship No Comments »

Terry D. Watson, DDS Regardless of where you are in the selling process, you can never start too early. Consider the following 13 tips to improve your practice now. 1. Get your fees in line. Fees should be evaluated and adjusted annually. Several resources are available to report treatment fees by percentile for a given zip code. Getting your fees in line can add practice value if instituted soon enough. 2. Do a cash-flow analysis. The total value of the practice cannot exceed the ability Read more [...]



Surprise! Surprise!

November 27th, 2007 admin Posted in Practice buying, selling, partnerships or associateship No Comments »

Did you buy the “practice” you thought you were buying? As a dental broker representing both buyers and sellers (but never at the same time!) and a practice-management consultant, I have been engaged by lenders and buyers to help them work their way through practice purchases that appear to be going sour. In 80 percent of the situations, the problems they are confronting should never have happened - and wouldn’t have happened had they had good representation!Let me give you an example of one Read more [...]



‘Scratch’ start-up or purchase ?

November 26th, 2007 admin Posted in Practice buying, selling, partnerships or associateship No Comments »

Last week, I was again asked to give my opinion about the merits of starting a practice from “scratch” as opposed to purchasing an existing practice. The answer is an easy one if there is an existing practice for sale in a location that appeals to you. So, as an example, let’s compare Dr. A, who chooses a start-up practice, with Dr. B, who purchases an established practice. Dr. A decides to start a practice in a popular growing community. An attractive space is available, and demographics Read more [...]



Practice mergers : a great way to grow !

November 25th, 2007 admin Posted in Practice buying, selling, partnerships or associateship 1 Comment »

There are several ways in which dentists can grow their practices. Some of these methods range from expensive marketing campaigns to expanding services or products offered to patients. Although these methods may prove to be effective, we have found the best and most profitable way to grow a practice is a “practice merger.”In essence, a practice merger involves the complete movement of a seller’s practice into a buyer’s facility. Even though these practice mergers can be extremely beneficial Read more [...]



Four ways to sell your practice

November 23rd, 2007 admin Posted in Practice buying, selling, partnerships or associateship 1 Comment »

Our organization has served dentists considering transitions for more than 30 years. We find that many dentists are planning for transition at an earlier age - from 35 to 60.In the past, the majority of dentists waited until their late 60s to early 70s to retire, and then realized their practices had decreased in value. The value declined because they had taken more time off and served fewer younger families. They had not tried to attract new patients in their last few years of active practice, and Read more [...]



Understanding practice value

November 22nd, 2007 admin Posted in Practice buying, selling, partnerships or associateship No Comments »

There are many reasons why dentists might want to have their practices appraised. Some of these reasons include: Sale or purchase Associate buy-in Partner buy-out Mergers Death or disability Estate value Divorce No matter what the reason for the sale, it’s important to understand the term “value.” There are three values for most dental practices: Seller’s Economic Market The purpose of this article is not to provide formulas for determining these values, but Read more [...]



Talk to your associate about transition

November 21st, 2007 admin Posted in Practice buying, selling, partnerships or associateship No Comments »

Many dentists are hiring associates to help in their practices. As part of the initial interview, the topic of future equity or purchase is briefly mentioned. For the majority of practices, little or no further discussion of transition takes place after that. Thus, instead of having a future buyer, the result is a messy breakup. There are many reasons why practice owners choose to have an associate: * To provide coverage when the owner is on vacation * To help with a busy practice and provide Read more [...]



What happens when the doctor dies ?

November 18th, 2007 admin Posted in Practice buying, selling, partnerships or associateship No Comments »

In the course of a year, we will receive several calls from a grieving spouse or staff member, informing us that the doctor has suddenly passed away. The spouse or staff member has been given our name by other dentists, the dental society, the dental association, or the dental board. The question is always the same: how can we help them and how quickly can we get involved? Sometimes, the call comes from a dental office that has a “Memo of Direction” on file with us. I’ll explain more about Read more [...]



Are you ready to sell ?

November 17th, 2007 admin Posted in Practice buying, selling, partnerships or associateship No Comments »

At a point in every dentist’s career, the time comes when he or she needs to devise and implement a transition strategy so that the practice built over the years will continue on in the hands of a young purchaser. This can be one of the most rewarding times in a professional’s career for both the buyer and seller if performed properly. If shortcuts are taken and executed improperly, both dentists and their families are susceptible to continued liability and the destruction of typically a doctor’s Read more [...]