Considerations in Purchasing a Dental Practice

It is a very important that you give yourself due consideration in deciding where to buy, how to go about it, and what kind of practice to purchase.

Do Your research

Pace yourself. You are building the foundation of your future. Where do you want to live, how responsive will the community be to your new practice, how much of a rapport do you already have with the community?

Choosing the Best Location

Decide on where you would like to live. You’ll end up being a big part of this community, so you’ll want to make sure it’s a good fit. Establishing a connection with the locals will help your business succeed. And shortening your community wouldn’t hurt either. 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. Intercity or rural–what’s best for your family? Let the location of your competition inform your decision. Other issues are whether or not your spouse needs to find work, and the quality of the school system in the area.

Determine 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? Does working a full five-day schedule with a large list of clients appeal to you? Or do you want a smaller practice, with a slower pace, that will allow you to work fewer hours? Naturally, these decisions will affect your finances and may dictate your level of day-to-day stress too.

Seek an Appraisal

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 will help ensure you are within the means of your projected income.

Enlist Support

Trying to save money by being completely self-sufficient is a poor decision when you plan on purchasing a dental practice. Trusted advisors can save you plenty of trouble. Here are some people you might want to have on your side:

• A tax accountant experienced in aiding dental practices and other small businesses on reducing tax burdens and remaining tax compliant. You want a Certified public accountant who can help you develop tax strategies. You will need a cpa to advise you on how to structure your dental practice (S corporation, C corporation, limited liability company (LLC), professional limited liability company (PLLC), sole proprietor).
• A Bookkeeper that is already well-versed in a small business accounting system such as Quickbooks. A certified Quickbooks Advisor is a title bestowed upon a bookkeeper which says the person is certified by the makers of Quickbooks as proficient with the accounting platform.
• An attorney at law to review all documents related to the sale and to legally protect your interests in the future.
• A consultant for your new dental practice will most probably prove valuable in the long run, helping you meet goals.
• From the beginning, you should establish a relationship with a bank. Getting prequalified, and ready to finance, helps you keep perspective on how to put in a good offer and how much you can afford.
• An insurance representative will assess the value of your business and evaluate risk to see just how much coverage you’ll be needing.
• It is wise to seek the help 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 pro that knows online marketing.

Purchasing a dentistry practice is a major step for a DDS. Be prepared for success.

ax CPA John 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 CPA tax accountant profile. Seattle CPA John Huddleston is a frequent publisher of tax saving ideas.