Purchasing a Dental Practice: What to Know

Deciding where to buy, how to handle it, and what kind of dental practice to purchase is a crucially 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.

Research Research Research

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.

Location Location 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. Dentists who involve themselves in community events and organizations are usually successful as they are meeting people and networking all the while. And shortening your community wouldn’t hurt either. When you can avoid the long commute, those hours you might have spent on the road can be paid forward and spent instead with family and friends.

What sort of community is the right fit for you and your family? Do you like the suburbs, or do you want to live in more of a rural community? These choices will dictate how many competitors will be in close proximity. Other issues are whether or not your spouse needs to find work, and the quality of the school system in the area.

Deciding on 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. Do you want to practice general dentistry or do you prefer an expensive practice that focuses on cosmetic dentistry? Do you prefer a five-day-a-week schedule with a long client list? 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 a Valuation

Have the business appraised with the help of a certified public accountant or valuation specialist. And prefer a professional that has experience with dental practices. This way you’ll gain a better perspective.

Enlist Support

Just as your business cannot operate without the support of patrons, you’ll never realize your full-potential without the aid of experienced professionals. You’ll have to rely on the expertise of others as your patrons will have to rely on you. Trusted advisors can save you plenty of trouble. Here are some people you might want to have on your side:

• A CPA or accountant with experience advising dentistry practices and other small businesses on remaining tax compliant and reducing tax burdens. You should seek an accountant who can help you develop tax strategies. You will need a cpa to advise you on the best entity structure for your small business (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 like Quickbooks. A certified Quickbooks ProAdvisor means they are certified by by Intuit as knowledgeable with the Quickbooks program.
• Legal counsel to protect your interests and review documents.
• A consultant also may well prove useful in the long run, helping you save money and avoid headaches.
• Right at the beginning, you should establish a relationship with a bank. Getting prequalified, and ready to finance, will help you gain a handle 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 exactly how much coverage you’ll need.
• It never hurts to seek the aid 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.

Build a team. Do your research. Dumb luck most likely will not get you there.

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.