It's an exciting and daunting time if you are a dentist looking to buy or set up your own dental practice. There are so many things to consider, you possibly have a few doubts, and you have a substantial 'to-do' list – all things that you have to fit in around your day-to-day work as an associate.
Many of the hurdles you will come across are related to things that were not taught to you whilst training to be a dentist. Whether it's analysing financial documents, reviewing legal contracts or negotiating to get the best deal, these may be new skills you need to acquire as you work through the process.
Ensure you are cut out to own your own business – it takes blood, sweat and tears, and a different mindset – it isn't for everyone! Speak to other dental practice owners and see the issues they faced during their dental practice purchase.
Find the right dental practice for you – this in itself can be a challenge. Is it in the right location, do you have the right profile of patients and, all importantly, is it within your budget? Does the practice have the right team in place all ready to support your work?
Assess the numbers – the essential stage in the process of crunching the numbers. It is vital to ensure that the business is profitable, or can be profitable. The help of a qualified specialist accountant will make all the difference to your dental practice financing.
Get a proper dental practice valuation – a practice valuation by a reputable company or a Chartered Tax Adviser is vital. This will give you a formal document detailing the value of the dental practice and a place to start negotiations.
Obtain dental practice finance – the important cog in the wheel is raising commercial finance to fund your dental practice purchase. Dental & Medical Financial Services have excellent connections with lenders who can help you achieve your goals.
Make an offer – once you have a solid practice valuation in place and your dental practice finance agreed, you are in the position to make an offer and negotiate until you and the seller find a mutually agreeable price to settle the deal.
Join with a dental specialist solicitor – a solicitor can help you with the dental practice purchase contract and other important legal matters. A dental specialist solicitor is always advisable, as they will have carried out this transaction many times before.
Join with a dental specialist accountant – an accountant will be required to manage the finances and tax for the practice. Unlike an associate, as a practice owner you will need help in this area as it becomes more complex. Again, a specialist dental accountant is suggested for bespoke advice.
Join with a dental specialist financial adviser – as time goes on and your practice makes profit, it helps to have a trusted specialist financial adviser to take care of your wealth as it builds, ensuring you are working towards a solid retirement plan. Now you have a wonderful asset – your practice – you will want to maximise your return on your investment!
If you are starting your own dental practice from scratch, a similar process will apply.