Best Business Consultants near Bensalem, PA

Surprisingly, many dental practice transitions are quite short. The keys to a successful transition are a good letter (introducing the new doctor which should be sent right after settlement) and a staff who will carry over from one doctor to the next. In many general practices, the transition lasts only until the owner finishes the cases that were in progress as of settlement. If the practice can afford more than one doctor and the seller would like to stay on, then the transition can last however long as both doctors agree to. In specialty practices, the transition may need to be longer to allow time for the referring doctors to meet the new doctor.

The steps to buying a dental practice can vary slightly depending on where you are in your career, and the order in which they are followed can also vary and this is not an all-inclusive list. Consider: If you are a new grad, work as an associate for a year or two to improve your skills, speed, and production. Decide where you would like to live and practice, considering you may be in that location for a long time once you are established. Reach out to brokers that have listings in the area you are intersted in. You can also reach out directly to dentists who may be nearing retirement age. Visit the practice and meet the owner. Review the financials and computer reports. It can also be beneficial to have an accountant or another advisor familiar with the dental industry assist you. Make an offer which includes the price being paid, the terms (typically a loan from a bank), and transition, or how long the seller will stay on. Depending on the situation the offer could also include the purchase of the real estate. When the offer has been negotiated and accepted by both buyer and seller, attorneys will get involved to draf the Asset Purchase Agreement (APA), and other key documents, such as an Employment Contract if the seller is staying on during the transition, and a lease or other real estate documentation. After the APA and other documents are signed, the closing will occur and ownership will be transferred.

While DSOs or dental support organizations may offer a higher price on paper, there are several factors to consider before selling to a DSO. Some of the price may be held back until the seller completes the transition, and some may be paid over several years based on future productivity. The seller may also have to commit to staying for at least one to three years, and DSOs often do not want to purchase the real estate. Due diligence and documentation are also more extensive with a DSO. Therefore, it is advisable to talk to a dental practice broker before considering selling to a DSO.