Should You Sell Your Accounts Receivable? The short answer to this question is yes, it is a good idea to sell your accounts receivable if both parties agree and the price is carefully evaluated. The reasons for transitioning the accounts receivable are related to supporting a seamless transition for the Selling Doctor and the Buying […]

EBITDA – six letters that can make all the difference in your dental practice transition.    Whether you’re thinking of buying or selling a practice or just want to know what your practice is worth, all you need to do is calculate your practice’s EBITDA, and you have the magic key that unlocks all the […]

Dentists are increasingly getting a late start on saving for retirement. This is often because they are paying down school debt, financing a practice purchase, and so many other life/business matters. However, there’s a way to catch up these dental retirement savings, and even help to supplement the proceeds from a future sale of a […]

By Sarah Lynch The top three risky behaviors for dentists to avoid are indecision, procrastination, and letting emotions drive a deal. These can cost you financially and rob you of your peace of mind. The smoothest practice transitions involve careful planning and excellent communication between the parties. I can’t emphasize planning enough! The most successful […]

An understanding of the value of a dental practice is essential not just for those considering a transition, but for any dentists attempting to accumulate wealth for their retirement. All dental practice owners need to understand the true investment earnings (EBITDA-earnings before interest, taxes, depreciation, and amortization) of what is often their single largest investment […]

A recent practice transition that we handled included the purchase of the selling Doctor’s accounts receivable. The buyer inspected the accounts order to arrive at a reasonable purchase price and the seller also contemplated an agreeable amount. Both parties found an amount they were satisfied with and the transaction was completed. However, there were issues […]

A dental practice transition requires expertise in many different areas of business and the law. I will narrow my advice as it applies to the U.S. federal income tax laws as they may apply in dental practice transitions. Proper tax planning and preparations in the sale of your dental practice can afford the seller of […]

PRACTICE TRANSITIONS often require buyers to deal with leased facilities and a host of unfamiliar issues. Stability is the name of the game in a transition, so leaving a practice in its current location is wise. This does not mean you’re stuck without options on the lease of the current facility. The seller has one important […]

If you’ve ever watched one of the popular trauma ER documentaries, you’ve probably thought, “I’m glad that wasn’t me!” After reading these actual practice purchase traumas, you may think, “I’M GLAD IT WASN’T ME.” FUTURE SALE DATE: A practice had $300K collections. Nearby, a young dentist agreed to buy the practice to merge it into […]

Recently, 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 […]

In these difficult economic times, one of the best ways to grow your practice is “growth by acquisition.” Growth by acquisition is a strategy to increase your patient base by acquiring another practice and merging it with yours. The best candidates for this strategy are practices small enough to comfortably accommodate additional patients, and those […]

In order to maintain the best possible relationship between buyer and seller during a practice sale, it’s important to have an intermediary or buffer such as a broker, attorney, or accountant to assist in the negotiation of the sale of the practice assets. Selling a dental practice usually requires some negotiation, and having this  intermediary […]

Various methods of appraisal have been used through the years. Some of the methods have fallen out of favor, and more sophisticated appraisal methods have evolved. To establish the most accurate value possible, a combination of methods is recommended. Securing an earnings stream is the primary motivation for a dentist to purchase a dental practice. […]

Not doing due diligence is not a good excuse for finding out poor decisions have been made. Too often, doctors interested in buying, selling, or transitioning a dental practice don’t look at all of the information they should to make correct decisions. My studies have shown that most doctors know what information they should obtain. […]

Before buying or selling a dental practice, great care and planning should be taken to consider the TAX CONSEQUENCES regarding the allocation of the sale price to the various assets involved in the transaction. Typically, the group of assets that would be sold between the selling party and buying party would include dental supplies, furniture, […]

There are several ways in which dentists can grow their practices. Some of these methods range from expensive marketing campaigns to expanding services or products offered to patients. Although these methods may prove to be effective, we have found the best and most profitable way to grow a practice is a “practice merger.” In essence, […]