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Buy A Dental Practice to Sell it For a Profit

buying a dental practice to sell itMany dentists are very successful at managing  solo dental practices.  Some of these dentist go on to hire associates or allow partners to buy into the growing business.  Once the potential for local growth is optimized, or the limits of the space of the current office are maximized, consideration should be given to purchasing another dental business. The successful business systems including marketing, scheduling, ordering, and other standard methods of operation could be extended to an additional location in a near by city.  An older practice that is lacking in modern technology would be easy to rapidly increase in value.  After purchasing a dental business in a close city, the office could be modernized with new decor, marketing could be extended to the new location,  the business systems of the home office could be leveraged to lower overhead, and the income stream from the home office could be used to rapidly eliminate an debt acquired.
 
The cost to modernize an existing dental business’s appearance is often not as much as may be expected.

Creative Student Loan Options for Dental Practice Owners

dental practice financingDental school has become more expensive, and options for scholarships in graduate school are no where near as abundant as undergraduate education.  The debt can quickly compound to a sizable amount and cause extensive stress for a young dental school graduate.  Creative options exists for a productive dentist to eliminate student loans.  The options include adding the balance into the purchase prices of a practice,  refinancing a newly purchased dental practice to incorporate the debt, and  incorporation of the debt into the real estate debt.
 
Dental practices have traditionally sold for a purchase price that is a fraction or multiple of the collections.  The market is experiencing an inflation of practice values.  Many banks and finance companies will now finance 100% or greater of the collections of the practice.  This money can be used to eliminate student loan debt.  Interest rates for a dental practice may be lower than a student loan rate.

When to Sell a Dental Practice

Dental Career LifespanIs There A Time Value To A Dental Education?  
 
When Should A Dentist Plan To Sell?
 
Dental school is a very intense educational process.  Unlike medical school, dentist have to go to class, study for numerous exams, and dental students have to spend much more time in the lab learning the technical hand and eye coordinated tedious dental procedures.  The hands of the dental student have to learn to do what the mind can learn and process in theory.  Dentistry is an extremely rewarding profession and provides a great quality of life for the provider when a career is managed well.

Buying a Dental Practice- 6 Reasons Why a Long Term Associateship is Not a Good Idea

Buying a Dental Practice- why long term associateships is not a good ideaDental professionals have prospered and survived a vigorous education and weeding out processes.  The professionals are able to do many things when they graduate such as academics, associateships, public health, buy practices, or join the military.  The most lucrative option is to purchase a dental practice.  
 
There are at least six reasons why it is not a good plan to be a long-term associate.  They are:
 
-the associate is building wealth for the owner
-the associate is not in control 
-longer associate relationships rarely convert to ownership 
-changes are more difficult after a long term associateship 
-associates have less options for elimination of student loan debt
-and the benefits of business ownership will always go to the owner
 
Associates produce income and accomplish dental treatment.

Five Creative Ways to Build Wealth After Buying a Dental Practice

A dental practice is a business like any other small business.  When you buy a dental practice, there are many ways to leverage the revenue for building wealth through other ventures and creative entrepreneurial ideas.  Dental businesses will have a wide profit margin if they are well managed.  The pre-tax profit creates a revenue stream that can be used in many creative ways to build wealth.  The income stream can be used to fund retirement accounts for the dentist, his or her spouse, and children.  It can also be used to build a portfolio of income properties, build a satellite office, develop and design a product line around the business logo, or to build  another profitable business.
 
A dental business will have to have a bookkeeper and accountant to manage the finances.  An additional individual needed will be a retirement plan specialist.  Dental practices cannot discriminate with retirement plans so the plans designed must be available to all employees.  For this reason, many dentist will put all the staff into a separate company and lease the staff services from the new staffing company.  Many different plans are available to the dental proprietors.  Cross tested programs allow some discrimination.

5 Reasons to Buy a Dental Practice Sooner Versus Later

Many years of hard work, dedication, and perusing excellence are necessary to graduate from dental school.  Additional training in a dental specialty or continuing education requires time, resources, and commitment.  The most effective way to leverage a dental education is to buy a dental practice and reap the benefits.  
 
There are several reasons why a dental practice should be purchased sooner rather than later.

5 Major Benefits of Buying a Dental Practice

buying a dental practiceThe decision to buy a dental practice is likely going to be the most important financial decision a dentist will make during his or her career. The dental business is how the dentist will support his family, plan his retirement, and define his career.

5 of the top benefits of buying a dental practice are:

  • control of the revenue stream

  • control of when taxes and the owner are paid

  • building equity in the business

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