You can buy my practice ... but you can’t look at my patient files! Any takers? Pending legislation in the “Patient Privacy Act” may prohibit a potential buyer from examining the seller’s patient files. Who wants to buy a practice without knowing the number of active patients? The major portion of the price paid for a dental practice is attributed to patient records. The expected repeated collections... More »

For most dental practices, bottom-line profitability is at risk as one of the longest growth periods in the United States economy has begun to falter. Let’s address two issues that the average dental practice faces: increased staff costs and rent. Even though the economy has slowed, unemployment still is low. Finding qualified, experienced staff at a reasonable cost is difficult in many areas of... More »

In 10 years of working with young dentists, I have found practice ownership to be their greatest goal. An entrepreneurial spirit is at the heart of most dentists. Finding the right practice to fulfill the desire for ownership is the difference between a successful dream and a dismal nightmare. So what should you look for? Consider these elements before buying the practice that feels like “home”: geographic... More »

Pizzazz in a dental practice? Yes. Pizzazz is that elusive quality which makes the difference between a practice that can be quickly sold vs. a practice that remains on the market unsold month after month. Pizzazz is the sizzle, the sparkle, even the flamboyance that makes a practice desirable and salable. What creates pizzazz? An attractive office. As a patient, would you be happy and at... More »

In my formative years, I was attending a workshop given by my friend, the late, great Dr. F. Harold Wirth. During the workshop, he posed the question: “How much is enough?” From the back of the room, I answered: “Just a little bit more.” Well, he never let me forget my quip, and he wove my story into his lectures and workshops for years and years. There is some truth to my quip, especially among... More »

Many doctors seeking to purchase a practice fall in love with a particular one for the wrong reasons. It may be the location; it may be the perceived opportunity for growth; it may be the gross and net income the selling doctor reports. Seldom does a prospective buyer know enough about the intricacies of practice transfer to do good “due diligence.” This is where an experienced broker can be especially... More »

One of the most important events in the life of a dentist is when he/she sells the dental practice. All too often, retirement is the only event that doctors prepare for. There are other events in a dentist’s life that may necessitate selling all or part of the practice. Preparations for these events are equally, if not more, important than a planned retirement. What happens when a dentist becomes disabled,... More »

My Sunday nap ended suddenly with the frantic ringing of the phone. It was Doctor Z, a man in his mid-60s. We had met at a seminar on practice transitions, but he decided to “go it alone” with the sale of his 40-year-old practice. His voice was trembling, “Alan, you’ve got to help me! My buyer is destroying my practice! I just can’t stand by and watch my life’s work shrink up and die!” “Hey,” I interrupted,... More »

"I’m sorry, but we are not comfortable making the loan due to poor credit history!” Unfortunately, this is a comment I hear all too often from lending institutions when attempting to secure a loan for a practice transition. For the past 30 years, I have been preparing financing packages for dentists wanting to purchase a practice. Never in that period has money been more available at reasonable... More »

In my last column, we discussed the concepts of price and value. We learned that price is the consideration (cash, note, barter, etc.) paid to acquire an asset. Value is the benefit received by the buyer from the use of the asset. We learned that value is the more important factor to a buyer, since it is the actual income the buyer will have to live on. Now, our objective is to learn how to recognize... More »