1. What’s the value of a dental practice? The value of a properly appraised practice is a function of two factors: Risk and Net Income. The greater the risk to success in a practice, the lower the interest from buyers. Higher risk translates to lower practice value. Valuing a practice involves the review of three… read more »
Archive for the ‘Associateship’ Category
The associate buy-in
Wednesday, June 23rd, 2010In this day and age of deferred retirements,more practice owners are making the decision to havean associate join their practice. Hiring an associatemay allow the senior dentist to take more time off and stillmaintain some income. Before such an endeavor is undertaken, it should be realized that an associate buy-in is muchmore complex than the… read more »
Feature Article: Sinning is oh so costly
Wednesday, July 1st, 2009Consider these simple facts: Most doctors have no income-producing asset that makes more money than their dental practice. Any practice transition activity will, by definition, have some type of effect for the rest of your life, both at the professional and personal levels. Any misstep in this area can be costly — often beyond measure…. read more »
Feature Article: I’m losing money on my associate
Friday, February 6th, 2009Recently, I structured an equity development plan — our safer alternative to partnerships — for a practice owner and an associate dentist. I assumed that they were happy and doing well until I received a call from the owner that the associate was making too much money and the owner was losing money. Apparently, while… read more »