Deciding to start the buy-in process isn’t cut and dry. A buy-in allows you to become a partner with an ownership stake in the practice, but from there, the options will depend on your end goals. Here are three types of dental practice buy-ins, broken down by their pros and cons.
Single practitioner office
Pros: Buying in to a single practitioner office is more successful than associateships since everyone is tied to the practice for the long run. Job responsibilities tend to be better understood, and everyone has a say in what goes on in the practice, allowing for a smoother work environment. This route is much more stable as it forces you to work through potential issues with your partner to equalize the power dynamic. A better sense of control is established by each dentist having an intimate and valuable say in the type of dentistry performed and how the office is run.
With your partner being tied to your success, this mentor/mentee relationship will push them to want to see you succeed as much as you want them to succeed.
Cons: A partnership is similar to a marriage in that it can sometimes be great but other times you may need to work through problems. To ensure a happy and successful partnership, communication is key. And since you will have a partner, you won’t have full control.
Group practice
Pros: In addition to the same advantages a single practitioner office provides, a group practice is even more stable and tends to be more successful so you can expect more income from the beginning. Because there are more decision makers, there is a higher delegation of duties and more responsibilities to share, and in turn, less management. With a larger group, there are more skill sets so you can focus on your specialty.
Cons: If you are the last person to buy in to the practice, you will be the lowest on the totem pole so you may get voted down more often. It is incredibly rare to have the opportunity to be the majority owner, and since the practice is already established and successful, you can expect a higher valuation.
Corporate
Pros: In addition to the same advantages single practitioner offices and group practices provide, buying in to a corporate practice allows you to have less management responsibility than the previously mentioned options.
Cons: In a corporate buy-in, you will most likely only be a minority owner as it is incredibly rare to be a majority owner in this type of situation. You can expect to pay upfront for a larger monthly sum, in addition to having lower responsibility. This option also leaves you with a similar position as in associateships because you are the minority owner and will still be beholden to the majority.
What’s next?
Read more on the different options for buying in to a dental practice in the e-book “Recent Graduate,” then contact to the experts at Professional Transition Strategies to figure out which option is best for you.
The original version of this post appears on the Professional Transition Strategies website