More and more dentists are taking help of dental consultants when it comes to buying an existing practice or selling their established practice. Although, management consultants for dental arena are not brokers, they have considerable experience and expertise regarding purchase or sale of a practice that eases the transition for doctors. The dental consultants are the best advisers in this regard.
Dental consultants help selling dentists create a list of the total assets of the entire practise, current as well as potential profitability of the practice and translate all this in easier terms to the prospective purchaser. It is also important to list out clearly the budget showing actual costs incurred during the purchase of various assets such as software updates or equipment. The money spent on marketing activities should also be accounted while listing down expenditure. It helps to keep in mind, how and to what extent-marketing activities could help in popularizing the practice. All this data if clearly shared with the approaching buyer proves to be mutually beneficial for both the parties.
Purchasing a practice also involves careful detailing and attention to all minute details. Management professional offering dental consulting may help you look into minutiae and make better judgement. Many dentists choose to buy a practice instead of starting a new one believing that since an established practice is already drawing patients it is a safer bet. While the parameter of the patients coming to the practice appears to be promising it is advisable to see into other aspects of the practise also prior to making a purchase decision. Some negative factors, which should set off an alarm when you schedule a practice, may include:
An uneventful location with little or no visibility, waning neighbourhood indicating no growth prospects.
An unattractive building/ office space that may be located in basement and disprove odour from the surroundings.
Outdated and old equipment, which should need complete replacement that indicates extra ncurred cost apart from the purchase cost.
Space not sufficient for required technology.
Lack of modern computer systems and network or no computers at all.
A doctor who denies the professional assessment of the practice instead insists upon taking the help of his or her accountant.
A doctor who is wary of allowing you to do the physical chart count or does not want an advisor on his/her premise to help in evaluation.
A physical chart count that doesn’t even come close to matching computer reports or stated active patient numbers.
A doctor who refuses to have the practice professionally evaluated and insists his accountant can give you all the information you need.
Keep in mind that for orthodontics treatments most patients pay in advance. Therefore, account statement stating clearly the services rendered and promised as against the payments made or expected should be obtained from the selling doctor. Dental consultants may prove to be driving force in reviving your practice and showing new opportunities to you that were overlooked so far.