Purchasing a Dental Practice: The Vital Background Research

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.

Take your Time

Pace yourself. You are building the foundation of your future. Where do you want to live, how responsive will the community be to your new practice, how much of a rapport do you already have with the community?

Location Location Location

Decide on where you would like to live. Being a practice owner is a big commitment, and being a part of the local community is a big part of that. Establishing a connection with the locals will help your business succeed. A short to medium commute is an important consideration. 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

Are you pursuing a specialized dental practice or a generalized dental practice? Who is your competition? Will you be able to gain referrals from local practices (and likewise return the favor)? Is there room for your particular niche? What is your working schedule? You’ll want to establish a business plan that is meticulous.

Seek a Valuation

Seek the counsel of a certified public accountant prior to purchase. They can find out how much other dentists have paid for similar practices. This is going to give you a leg up in negotiating your purchase.

Establish a Support Net

Just as your business cannot operate without the support of patrons, you’ll never realize your full-potential without the aid of experienced professionals. 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 some people you might want to have on your side:

  • A tax accountant with a successful track record of guiding dental care practices and other small businesses on remaining tax compliant and reducing tax burdens. You want an accountant who can do more than just prepare your tax returns. Seek an accountant that can advise you on how to structure your small business (S-Corp, C-Corp, LLC, PLLC, Sole Proprietorship).
  • A Bookkeeper who has familiarity in a small business accounting system such as Quickbooks. A certified Quickbooks ProAdvisor means they are certified by by Intuit as knowledgeable with the Quickbooks platform.
  • An attorney to review all documents related to the sale and to legally protect your interests in the future.
  • A consultant for your new dental practice may well prove valuable in the long run, helping you achieve goals.
  • From the start, establish a relationship with a bank. Getting prequalified informs how to put in a good offer and how much you can afford.
  • Your insurance needs will increase ten-fold once you’re a business owner. An insurance agent will assess the value of your business and evaluate risk to see just how much coverage you will require.
  • It is smart to seek advice from a mentor that has experienced similar circumstance to those you’ll face.
  • A marketing expert-preferably someone with knowledge of internet marketing.
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.