“A merger is, without a doubt, the safest, quickest, most effective way possible to achieve instant, high quality patient growth that there is. Much more so than any marketing.” Earl Douglas, DDS, MBA, BVAL
If your practice could absorb more production and you would enjoy more net income, consider this entrepreneurial merger. This simply means absorbing another nearby practice into your office, or your moving your practice into that office, whichever is more practical. The entrepreneurial part means that the seller would work for you after the sale, so all of the acquired production would be performed by him. This specific practice would involve $600,000 additional gross income to your practice and the seller and hygienist would produce all of it for you. After all of your expenses and acquisition loan payments, there would be an estimated $56,000 net income. That is with the buyer doing none of the production. Add the tax savings in dollars – the practice price is 100% depreciable and deductible – and the equity built in the first year and there is a total financial benefit of just over $100,000. Consider that the profit alone from the work of the hygienist and seller will pay the monthly loan payment three times over each month. Yes, there is a risk. You would need to lose more than 90% of the current practice income before losing any money, and the chances of that happening are next to nil. If you are referring out implant services, consider that this seller who would become your associate, could perform those services inhouse, keeping those revenues for you. If you do not have a non-disclosure with ADS South, you can easily and quickly submit one. Click on this link, fill out the form and click on submit
Confidentiality & Client Agreement Contact Earl Douglas, DDS, MBA, BVAL at 770-664-1982 / douglas@adssouth.com
