"We literally do thousands of buyer conversations on a yearly basis," Professional Transition Strategies Founder and CEO Kyle Francis said in a recent Facebook video. "At any one time, we have something between 100 and 120 practices on the market, which means there's a lot of folks interested in those practices." The number-one question his team of data brokers receives: Is this practice going to be right for them? Here, we break down three things you should know before buying a dental practice.
Analyze the production
By analyzing the appraisal of the dental practice you’re considering, you’ll be able to assess if you can replicate that level of production in the future. The numbers will be broken down by provider and production type so you can compare the active patient roster and total new patients during the past 12 months against the list of employees with wage and salary information to see if the output is sustainable.
Assess the location
We’ve all heard the old real estate adage “location, location, location” before. This holds true for the dental practice market, as well. Here, you’ll want to decide if this is where you want to plant your proverbial roots. Yes, it's important to know the patient demographics and see how the practice stands up compared to its competition in the area, but above all, is this the community in which you want to invest your life both professionally and personally? After all, your patients may very well end up being your neighbors!
Evaluate the lifestyle
At the end of the day, you’ll want to weigh if the dental practice you're considering buying will provide you with the type of lifestyle you want to have, from a monetary and emotional standpoint. Even if the salary is in line with your expectations, if you don’t envision working nights and weekends to keep up with the day-to-day operations at a dental practice that doesn’t align with your specialty, it’s time to continue your search so you don’t just end up right back where you started.
Conclusion
If the dental practice you’re considering buying meets these requirements, it’s time to take the next steps in the buying journey. What does your dream practice look like?