When looking to sell your practice, it’s helpful to know who your potential buyers are. In any case, Professional Transition Strategies recommends buying an established practice rather than starting from the ground up due to a higher return on investment. Read on to figure out who would be a good fit for your practice.
Dental school graduate
Though highly unlikely since the average dental school graduate leaves with $500,000 in student loan debt, it is not unheard of for an aspiring professional to look to purchase his or her own practice straight out of school. In this case, it is more likely that a graduate would look to purchase an established practice rather than starting from scratch because of the existing staff and client base, not to mention the average $500,000 in start-up costs.
Corporate dentist
More often than not, a dentist’s first job out of school will be working in a corporate environment, such as a dental service organization. These highly reputable establishments allow dentists to focus on patient care while contributing no ancillary costs toward the practice, therefore being able to save to buy his or her own practice in the future.
Dental service organization
A DSO is a likely buyer when the seller is looking to stay on with the practice but wants to release managerial responsibilities, such as in a retirement situation or anyone who is looking to maintain a work-life balance. Selling to a DSO allows you to focus on the clinical side and patient care without contributing time and money associated with running a business.
Associate
Who better to sell to than someone you’re already working with? Most dentists take on an associate in hopes of potentially selling the practice in the future, so keep that in mind when looking for an associateship, while also taking into account the cost of acquiring a practice and the overhead of running a business.
Previous practice owner
A buyer isn’t always necessarily going to be a first-time buyer. A dentist who once owned his or her own practice could have sold to change specialties, geographic regions, or was simply looking for a new opportunity and a fresh start, making this new owner one who is already versed in running a business.
What’s next?
Read more about the different types of buyers and the buying process in the e-book “Transitions: Your Next Adventure Awaits,” then contact the experts at Professional Transition Strategies to start the conversation.