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 Not Rush into This

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.

Choosing the Best 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. Establishing a connection with the locals will help your business succeed. And ensuring a shorter commute could also pay off. Avoid a long commute and you’ll have the opportunity to spend that time with friends and family. That’s not a bad trade off.

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. Will your spouse be able to find work? Will your kids end up in a school district that will nurture them and grant you piece of mind?

Deciding on the Ideal Practice for You

Take special care in determining the size and type of dental practice that matches your preferences and needs. 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 maybe you’d prefer a smaller practice that allowed for more time off. Naturally, these decisions will affect your finances and may dictate your level of day-to-day stress too.

Get the Proposed Business Appraised

Seek an appraisal through a certified public accountant. And opt for a professional that has experience with dentistry practices. This will help you establish a clearer point of view. This will give you necessary information in making a purchase and could save you plenty.

Round-up the Troops

Trying to save money by being completely self-sufficient is a poor decision when you plan on purchasing a dental practice. There are many areas where you’ll need and benefit greatly from the expertise of others. In the long-run, investing in advisors will save you a lot of trouble. Here are some people you might want to have on your side:

• A CPA with a history of helping dentistry practices and other small businesses on saving tax dollars and remaining tax compliant. You need a CPA who can do more than just prepare your tax returns. Find a certified public accountant to advise you on the best entity structure for your small business (LLC, PLLC, Sole Proprietorship, S-Corp, C-Crop).
• A Bookkeeper that is already well-versed in a small business accounting system like Quickbooks. A certified Quickbooks ProAdvisor is a level of distinction in which a bookkeeper certified by the manufacturer of Quickbooks (Intuit Corporation) as proficient with the Quickbooks program.
• An attorney to review all documents related to the sale and to legally protect your interests in the future.
• A consultant also will prove valuable in helping you keep on schedule and achieve goals.
• From the beginning, you should establish a relationship with a bank. Getting prequalified informs how much you can afford and how to put in a good offer.
• An insurance agent will evaluate risk and assess the value of the business to see how much coverage you will need.
• It is intelligent 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 expert-preferably someone with knowledge of internet marketing.

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

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.