Are you looking to purchase a dental practice? Have you talked with your Dental CPA about it yet? Many times when a dentist’s decides to buy a dental practice, the Dental CPA is not brought in early enough to help with the process and ensure everything goes smoothly. There are many considerations that need to be made before purchasing a practice.
Things to Consider When Purchasing a Dental Practice
- Understand the dental practice’s compensation structure. You want to make sure you understand and are aware of the dentists’ salaries, as well as the dental assistants’ and also the salaries of the office staff. You also need to find out what family members are on the payroll. Your Dental CPA will be able to review these numbers with you to make sure there is nothing missing or anything you should be aware of.
- Review of retirement plans. Retirement plans come in a variety of shapes and sizes. What works best for a dentist that is retiring soon may not be best for a younger dentist. These are things to consider to make sure the proper plans are in place or if you will need to make adjustments. You will want to be prepared for any changes that will need made.
- Understand the fringe benefits. What benefits are offered to the practice’s employees beyond medical insurance? Meals, entertainment, automobile expenses, etc.? These are all items that need to be discussed before the practice is purchase. You will want to know the additional costs for running the dental practice and review them to see if you need to make any changes.
- Understand the value of the dental practice. Your dental CPA can review this with you and determine what the true price is for the dental practice to make sure you’re not over paying.
- Interview the seller and the dental practice staff. As a buyer, it is a good idea to meet with the staff of the dental practice you are looking to purchase and also the seller. You want to make sure they are able to answer questions you may have. Also, make sure the seller is willing to be available after the purchase to help you settle in and make introductions to contacts, clients and referrals.
- Be prepared to hire new staff. Before making the purchase, review the staff and see who may need to be replaced. Some staff members may have been family. This is seen a lot of times with bookkeepers as they may have been a family member or the owner themselves.
Purchasing a dental practice is a big decision that takes a lot of research. Don’t bring in your dental CPA too late. They can help you do the necessary research and be able to provide you with a clearer picture of what to expect when purchasing a dental practice.
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