While speaking with a lender who does dental transition financing, he mentioned the great rate of returns a lot of corporations get by purchasing dental practices. He said that buying the right practices, even at fair market value, would result in rates of return as high as 15-20%. That is an incredible return rate for any investment, and it sure beats the money market and savings account rates that pay 2% or less.
Each year these corporations take actions specifically aimed at increasing the profitability within their practices and they see their investments flourish because of it. As a dentist, purchasing your own dental practice is a financial investment which you can benefit from as well. Owning your own dental practice not only gives you security and stability within your life, it gives you the control necessary to make bigger profits and greater rates of return on your investment.
Then when a dentist has invested years of hard work into his dental practice and shown a longstanding history of improving the practice they are able to sell the practice to a new owner, often times for a large profit that they can retire with. So if you are a dentist that is thinking about going to work for someone else, and making a huge profit for your boss, think about the benefits that await someone who will take ownership.
Summarized from notes written by
Earl M. Douglas, DDS, MBA, BVAL
ADS South, LLC.