Purchasing a Dental Practice: What to Know

Deciding where to buy, how to do it, and what kind of dental practice to purchase is an 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.

Take your Time

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.

Deciding on Location

Think on where you’d 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 ensuring a shorter commute could also pay off. 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? Intercity or rural–what’s best for your family? 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.

Choose the Ideal Practice for You

Consider: size and type, Are you interested in specialized dentistry practice, or a generalized dental practice. Who is your competition and is there room for your particular niche? You’ll want to lay down a business plan that is thorough.

Seek a Valuation

Seek the counsel of a certified public accountant prior to purchase. They can find out how much other dentists have paid for similar practices. This will help ensure you are within the means of your projected income.

Establish a Support Net

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 CPA or accountant with experience helping dentistry practices and other small businesses on how to stay compliant and reduce their tax burden. You will need a CPA who can help you set up tax strategies. You will want a certified public accountant to advise you on the best entity structure for your small business (S-Corp, C-Corp, LLC, PLLC, Sole Proprietorship).
• A Bookkeeper who has familiarity in a bookkeeping system such as Quickbooks. A certified Quickbooks ProAdvisor means they are certified by Quickbooks as skilled with the bookkeeping program.
• An attorney at law to protect your interests and review documents.
• A consultant for your new dental practice will likely prove valuable in helping you achieve goals.
• From the start, establish a relationship with a bank. Getting prequalified 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 how much coverage you will need.
• It is smart to seek the help of a mentor that has experienced similar circumstance to those you’ll face.
• A marketing pro that knows online marketing.

Purchasing your first dentistry practice is a big step in the career of any DDS. Be prepared and fully understand the process you face on your way to becoming a business owner.

Tax 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.