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 ‘Buying’ Category
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Top 10 Questions Dentists Ask When Buying or Selling a Practice
Monday, September 12th, 2011Tags: appraisal, appraised value, associate, covenant-not-to-compete, dual representation, non-compete, patient acceptance, restrictive covenant, staff stay, transition process, valuation, Value
Posted in Appraisals, Associateship, Buying, Partnerships, Selling, Valuations |
Purchasing a Practice: Getting a Great Value at a Reasonable Price Ensures Success
Friday, March 11th, 2011Is there a difference between price and value when purchasing a practice? Emphatically, YES! Getting a practice at a great price does NOT ensure success, but getting a great value at a reasonable price does. Even the buyers who hire the best transition specialists in the industry confuse the interaction of these concepts. Let’s define… read more »
Tags: Buying, buying a practice, due diligence, purchase price, Value
Posted in Buying |
Communication is the key
Wednesday, January 26th, 2011Without a doubt, the most important element in the transition process is COMMUNICATION. Communication between the seller and buyer BEFORE the transition. Communication between the seller and staff DURING the transition. Communication between the buyer and staff DURING and AFTER the transition. Communication between the buyer and seller AFTER the transition. Most problems that surface… read more »
Tags: Communication, Treatment Planning
Posted in Buying, Selling |
Consider the taxes when negotiating a dental practice sale/purchase
Wednesday, December 22nd, 2010We all know that DEATH AND TAXES are the only two certainties in life. We also know that when you sell a dental practice, chances are you are going to have to pay income taxes on the sale. What may come as a surprise is that the amount of taxes due can vary widely depending… read more »
Tags: deductions, dental practice transitions, goodwill, IRS, selling a dental practice, selling a practice, selling your dental practice, selling your practice, Taxes
Posted in Buying, Selling, Taxes |
Avoiding a Tragic Transition
Tuesday, November 9th, 2010A common deal-breaker for some practice transitions is a misunderstanding about determining practice value. The tragedy is that this need not occur if the issue is properly addressed. Among the most common misconceptions about practice value is what percentage of a year’s income is appropriate for determining value? It is very common to hear that… read more »
Tags: dental practice purchases, dental practice sales, dental practice value, practice valuation, practice value, purchasing a dental practice, purchasing a practice, selling a dental practice, selling a practice, selling your dental practice, selling your practice
Posted in Buying, Selling |