The world looks different now than it did in 2019. The “best” tactics have changed. We went through an apocalypse, for lack of a better word, and small businesses got swept up into an environment of utter chaos. Those of us who survived have adapted and found better ways to go. The many of us who didn’t survive are currently on a journey to find out what might work better this time around.
Pandemic or not, the times are always changing. As each year passes, strategies evolve. The landscape is constantly changing, and the best business owners are revamping their approaches to stay current with the game. And, just like business tactics have evolved, the process of buying a dental practice is different than it was a few years ago. The competition is ramping up with DSOs and private equity in the mix, which gives you more reason to buckle down with the right people when you’re on the hunt for buying a dental practice. That’s why, for this week’s article, I’m going to tell you about five people you’ll need to work with when making your dental practice purchase checklist.
1. A good team.
If you’re planning to take the intrapreneurial route and not solely own your dental practice, then you need to get your team assembled before you go out looking for a dental practice. And when I say “team,” I don’t mean dental staff. It would be hard to get a hygienist or dental assistant on board with your business during this stage. I’m talking about your team of dental associates—fellow dentists—with whom you will own this practice. They’ll be invaluable resources to confide in before considering any buying decisions and they can help to represent you when you start talking with potential sellers.
2. A good attorney.
Before you start engaging in conversations with sellers, you’ll need an attorney who is specifically versed in the dental landscape. As one of the key dental practice transition experts, you don’t want to depend on your uncle who’s a lawyer or your trusted real estate attorney—you want a lawyer who works in the dental niche. You need someone who has experience with dental transition-type transactions. This is a very niche, specific area where experience is needed. Otherwise, they don’t know what they’re looking for and this hemisphere will become very confusing to understand.
3. A good CPA.
Working with a dedicated dental practice acquisition CPA is essential for success. You don’t always need to have a CPA on the very front end; there are times when a financial evaluation is included in the acquisition of a practice. But knowing that you’re ready to go with a CPA in case you need something cleared up on the financial side of things is going to be a good start.
4. A good real estate broker.
A dental practice real estate broker is going to be crucial when buying a dental practice. I would say this is higher on the list—if not the highest—and this is someone you want to talk to early on in the process. The reason why a broker is so important is that every single practice you look at is going to have a real estate component whether you’re leasing or buying the space. Having someone who understands not only real estate but dental real estate in your area is going to be a huge help. A dental practice real estate broker who knows your specific area is invaluable because your landscape is going to look very different if you’re in Phoenix vs. New York City vs. the middle of Kansas.
On that note, never settle down for practice that’s out-of-bounds from where you want to live or in the middle of anywhere just for more money. There’s a reason someone is trying to sell that practice to you, after all: nobody else wants to live in the middle of Timbuk2.
5. A good lender.
You don’t need to have someone out of the gates who is willing to throw you a million dollars. But having a couple of relationships or being in talks with a few bankers won’t hurt you.
There’s a lot that goes into buying a dental practice.
You won’t have everything nailed down 100% when you go looking for a dental practice to own. And, if you wait to get every piece of the puzzle in order, you’ll end up never making that leap because you’re too busy getting your feet. However, no matter where you are in the process, these five dental practice transition experts are going to be a must when completing your dental practice purchase checklist.
I run a community full of dental professionals who can give you some nuggets of wisdom about buying a dental practice. So, join the Nifty Thrifty Dentists Facebook group and reach out! People from all across the globe will be happy to let you in on their two cents.
