Today, if you are a dentist and do not own all or part of a practice, the question is not Why?, but Why not? Naturally, there are some compelling reasons why individuals choose not to own their own practice. However, the current environment makes the benefits of ownership so overwhelming, it is difficult to understand why a dentist would not want to go this route. Here are just a few of the reasons... More »

The past dozen years have impacted the prices of dental practices without parallel. Time was that the new dentist looked for a practice to purchase with the hope that he or she could find something older — yet salvageable — grossing $100,000 to $200,000 per year. The hope was to build the practice up gradually to a satisfactory level of productivity. Practices producing $75,000 to $250,000 were sought... More »

The typical practice transition involves a new dentist buying a solo practice with a short-term transition. Less frequently, this purchase follows an associateship period. I believe that maturity is the biggest reason some new dentists may shy away from an ownership commitment. The typical dental student is in a cocoon during dental school. Real-world experience is usually nil, based on academia’s... More »

When it comes to selling a practice, the staff plays a critical role not only in the transfer, but also in maximizing the value of the practice and its ultimate selling price. The staff — especially the key employees — often can be more important than the seller from a knowledgeable purchaser’s perspective. Sellers frequently are reluctant to mention the possibility of a practice sale for fear of “spooking”... More »

Many of you are members of an organized Death and/or Disability Group, but there may be some of you reading this article who are unfamiliar with them. Basically, a Death and Disability Group is normally composed of six to 12 individual dentists who agree to work a member’s practice in the case of death or disability. If you are a part of one of these groups, you are to be congratulated. Although these... More »

A crisis is developing in rural America! A dramatic demographic shift is occurring in dentistry as baby boomers begin to retire. By the year 2007, more dentists will retire from dentistry than will graduate from dental school. Up to 50 percent of the new graduates will be female dentists, and they are expected to work 30 percent fewer hours than their male counterparts. As many as 10 percent of the... More »

Almost daily, a dentist calls our consulting firm and wants to know what his or her practice is worth. A great deal of discussion in seminars, articles, and dental meetings focuses on practice value, transition, retirement, and financial planning. There also is a great deal of misinformation about practice value. It is important to know the real value of your practice. What follows are the most common... More »

We live in a world of change — a world when change and the unexpected happen as often as the stock market fluctuates. Smart investors protect themselves and their families from the volatility of the stock market by planning their investments through diversification. It is equally important for dentists to plan for their families’ protection if the unexpected happens to them — death or disability. Whether... More »

Although counterintuitive, retaining a broker to sell your practice will save you money! It is often enticing to attempt to sell a practice on one’s own. Superficially, the transaction seems simple enough, and it should be a quick and easy way for the selling doctor to save a few dollars. Certainly, a few have been able to complete a “fisbo” (for sale by owner), whether successfully or unsuccessfully.... More »

During the 37 years that I have served dentists, there has been a consistent answer when I ask about transition or retirement plans. Amazingly, the response is nearly always, “I’m going to do something in five years.” By waiting five years to plan a transition or retirement, my experience has been that nothing good can happen. On the other hand, there are many benefits to having a proactive, healthy... More »