If you’re a dentist, or about to graduate, you may eventually want your own practice. So, would you buy an established one, or start a new practice? By purchasing a dental practice, you’d probably go into debt, but it would give you a head start in the field. Dental brokers assist in the purchase of a dental practice. The video gives guidance on buying a practice.
A practice is valued between three to seven times the EBITDA. When purchasing a practice, consider attrition of patients, overheads, loan interest, and paying an associate. Think about making it more profitable, by offering more services, or by decreasing costs. If the dentist-to-hygienist ratio is 60:40, it could indicate that the practice is underdiagnosing, and it could be something you’d want to change.
The advantage of buying a practice is there is already cash flow that can service your debt and pay you a salary as well.
To find a practice, sign up for email lists of dental brokers and talk to dental material suppliers to find out if they know of anyone wanting to sell. Also, make cold calls to older dentists nearing retirement to see if they are interested in selling their practice.
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