If you are considering buying a dental practice to kickstart your journey in dentistry, you may have a lot on your mind. Finding the right practice at the right price is not easy. During seller-buyer meetings, it is essential to have your objectives and goals clear to ensure a smart purchase. This will also help you communicate your needs to the seller.
Before finalizing a deal, it is recommended to meet with the buyer to discuss a few questions. This will ensure that both you and the seller are on the same page and avoid problems down the line. Nevertheless, if you have never purchased a business before, seeking guidance from a dental attorney can tremendously help. Click here to learn how.
Questions to ask before buying a dental practice
Why are you selling your practice?
Dentists dream of starting their own practice after graduating from dental school because there is nothing quite like owning your establishment. However, after some time, dentists may want to sell their practice when they get old enough or for other reasons. Before buying a dental practice, make sure to ask the owner why they are selling.
People usually sell due to three reasons– retirement, disease, or they are ready to settle down. If their answer differs too much from these three, it could signal a problem. Sometimes sellers are simply trying to get out of a bad situation. The more questions you ask about this area, the better.
Are you willing to introduce me to the existing patients?
Dental practice transitions can be difficult for anyone. Among various ways to smoothen this transition, one is introducing the buyer to the existing patients. Before you finalize the purchase deal, ask the seller if they are willing to introduce you to their existing patients so that the ongoing business flow is not interrupted.
What is the value of the equipment?
Much of the dental practice’s value will depend on its equipment price. The equipment value should be correctly determined through a fair dental equipment appraisal service. You can also determine the useful life of the asset by the straight-line depreciation method. This is important to figure out the true cost of the practice powerful idea.
When does your lease end?
Many sellers put their dental practices on sale when their lease is just about to expire. If you think it is easy to renew them, think again. Renewing requires time, energy, money, and tons of negotiation, which can become frustrating. Dental leases are common traps you should beware of.