28 May Would You Buy This Practice?
Think you’ve found the perfect dental practice to purchase? You’ve looked at the specs and you now have decisions to make. How do you know a good deal when you see one? Here’s a recent scenario we came across recently.
Question: Would you consider buying this?
– upper middle-class suburban setting
– 45 mins from a major city
– medical complex with a GP and perio across the parking lot
– 3000 sq feet, 7 ops
– no signage, no visibility
– $565k collections
– $60k rent
– open 3 days a week
– dentist to pop ratio: 1:1000
– equipment and office in amazing condition
– asking $390k
– spending $800 a month in marketing and only getting 5 new patients a month
Answer: There isn’t a cut and dry answer to this.
Look at active patients and what procedures the current doctor may be referring out that you would keep in-house. Nothing says you have to keep the current marketing plan in place, you can go with a different company and/or incorporate some grassroots marketing efforts and ask for referrals. Keep in mind the previous dentist might not have been great about getting patients back for hygiene recall or have a great perio protocol. That doesn’t mean you can’t purchase the practice, you simply negotiate the price.
This opportunity is better than starting from scratch with awesome equipment and no patients. Do your homework. Get more information before making a decision. Too many times we see Doctors pass up an amazing opportunity.
When it’s time to purchase a practice, don’t go it alone. We have been a part of 100’s of successful practice transitions and we want to be there with you. Call us with your dental practice transitions questions at 1-833-238-4777 and we will help you make the best decision for you and the future of your dental practice.