Tips to Consider for a Successful Dental Practice Acquisition: Part 2
The process of acquiring a dental practice involves various steps, and it is important to be mindful of the decisions you make along the way. In the second part of our series on acquiring a dental practice, we will be discussing some of the key considerations you will need to make when selecting a practice, preparing for the acquisition, and transitioning the practice to your ownership.
From understanding the complexities of the transition process to ensuring that your practice is properly staffed and equipped, these tips will help you make sure that you’re ready to take on the challenge of acquiring a dental practice. By following these steps, both the buyer and seller can ensure that the transition is smooth and successful.
How to Ensure Your Dental Practice Acquisition Goes Smoothly – Part 2
Tip #1: Get Input from Key Advisers: Practice Transition Consultants, Dental-Specific CPAs, Dental-Specific Attorneys, and a Dental-Specific Lender
When it comes to acquiring a dental practice, it’s important to have the right team of advisers in your corner. Who should you get invaluable insights from?
Practice transition consultants are experienced professionals who specialize in providing guidance for dental practice acquisitions. They can provide valuable advice on the best strategies for a successful acquisition, such as assessing the current financials of the practice, negotiating a fair purchase price, and developing a plan for a successful transition.
Dental-specific CPAs can help you review the financial information of the practice you are looking to acquire. They can provide you with a comprehensive analysis of the practice’s finances, as well as help you develop a strategic plan for the future of the practice. They can also help you understand the tax implications of the purchase and identify any potential tax savings.
Dental-specific attorneys can provide you with legal advice and guidance on the acquisition. They can help you review the purchase agreement, review any legal documents associated with the purchase, and ensure that all the necessary paperwork is in order. They can also provide you with guidance on any potential legal risks associated with the purchase.
Finally, dental-specific lenders can help you finance the purchase of the practice. They can provide you with the necessary funding for the acquisition and help you structure the loan. They can also provide you with advice on how to manage the loan and ensure that you are making the most of your investment.
By utilizing the expertise of a team of advisers, you can ensure that your dental practice acquisition goes without a hitch. Be sure to do your due diligence and make sure that you are working with the right team of advisers to ensure a successful acquisition.
Tip #2: Get a First-Hand Look at the Dental Practice You’re Planning to Purchase
Once you’ve identified a dental practice that you’re interested in purchasing, it’s important to get a first-hand look at the practice before making a decision. This will help you to gain an understanding of the condition of the practice and the quality of care being provided to patients.
During your visit, you should take the time to inspect the practice, including the physical condition of the office and equipment. Make sure to check for any signs of damage or wear and tear, as well as any potential safety hazards.
Not to mention, if the practice has any digital systems, such as a dental software program, you should check to make sure it is working properly and that all necessary updates have been made.
You should also take the opportunity to speak with the current staff, both clinical and administrative. This will help you to get a better understanding of the practice and the relationships they have with the patients. It will also give you a better idea of how they might fit into the practice after you take ownership.
Tip #3: Always Try to Negotiate the Price First Before Settling
Negotiating the price of a dental practice acquisition is an important step in the process. It can be a stressful situation, with both parties wanting to get the best deal possible. It’s important to remember that negotiation is a two-way street and that both parties should be open to compromise.
Before entering into negotiations, it’s important to have a good understanding of the current market value of the dental practice you’re looking to acquire. Research the practice’s financial history, patient base, and any other relevant information. Knowing the value of the practice will help you make an informed decision about what to offer.
If you’re feeling overwhelmed or unsure of the process, consider enlisting the help of a professional. An experienced attorney or accountant can help you navigate the complexities of the negotiation process and ensure you get the best deal possible.
The Bottom Line: The Importance of Preparing Before Acquiring a Dental Practice
Acquiring a dental practice is a major decision that can have a lasting impact on your career and financial future. To ensure success, it’s essential to properly prepare before taking the plunge.
At Ash Dental CPA, we are dedicated to providing the best dental practice consulting services available. Our experienced team of certified public accountants, attorneys, and business advisors have decades of combined experience in the dental industry and specialize in helping dentists acquire, manage, and grow their practices. Contact us today!