Buying a Dental Practice: The Indispensable Background Research

Deciding where to buy, how to handle it, and what kind of dental practice to purchase is a crucially 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.

Research Research Research

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.

Location Location Location

Decide on where you would 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. Participating in local activities and mingling with neighbors will help your business grow. And shortening your community wouldn’t hurt either. 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.

Establish yourself amongst people you can relate to and people you can enjoy. Your practice and your interpersonal life will reap the benefit. Suburbs? Intercity? Rural? 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?

Choose the Ideal Practice for You

Lay out a working business plan. What size of dental practice do you anticipate? And do be careful to leave room for growth. Do you want to practice general dentistry or do you prefer an expensive practice that focuses on cosmetic dentistry? Do you prefer a long client list with a five-day-a-week-schedule? Or do you want a smaller practice, with a slower pace, that will allow you to work fewer hours? These decisions affect your finances and stress levels–what can you reasonably make work?

Seek an Appraisal

Get a CPA or CVA to perform a business appraisal on the proposed business purchase. Then you’ll have an informed point of view going into things. 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. You’ll have to rely on the expertise of others as your patrons will have to rely on you. Trusted advisors can save you plenty of trouble. Here are a few people you’ll need:

  • A certified public accountant versed in advising dental care practices and other small businesses on reducing tax burdens and remaining tax compliant. You need an accountant who can help you establish tax-saving strategies. Find a certified public accountant that can advise you on the best entity structure for your small business (LLC, PLLC, Sole Proprietorship, S-Corp, C-Crop).
  • A Bookkeeper who has familiarity in a bookkeeping software system such as Quickbooks. A certified Quickbooks Advisor means they are certified by Quickbooks as proficient with the Quickbooks program.
  • An attorney at law to review all documents related to the sale and to legally protect your interests in the future.
  • A consultant also could prove useful in helping you navigate toward success.
  • Right at the beginning, you should establish a relationship with a bank. Getting prequalified helps you keep perspective on how much you can afford and how to put in a good offer.
  • Your insurance needs will increase ten-fold once you’re a business owner. An insurance representative will assess the value of your business and evaluate risk to see exactly how much coverage you’ll have to have.
  • It is a wise idea to seek the counsel 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 pro that knows online marketing.

Starting your dental practice is a big deal. Set up a team that can help you start off right.

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.

Burien CPAAbout Burien CPA
Burien CPA+John Huddleston has written extensively on tax related subjects of interest to small business owners. He is a graduate of Washington State University and the University of Washington School of Law.

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