If retirement is not mandatory, the first question to answer before you sell your practice is, “How do I know if I have enough money to retire?” This column outlines the information you must gather in order to determine your choices on transitioning your practice. Let’s examine the protocol for planning retirement. Determine your expenses for one year. Calculate on a monthly basis what you spend... More »

At a point in every dentist’s career, the time comes when he or she needs to devise and implement a transition strategy so that the practice built over the years will continue on in the hands of a young purchaser. This can be one of the most rewarding times in a professional’s career for both the buyer and seller if performed properly. If shortcuts are taken and executed improperly, both dentists and... More »

In the course of a year, we will receive several calls from a grieving spouse or staff member, informing us that the doctor has suddenly passed away. The spouse or staff member has been given our name by other dentists, the dental society, the dental association, or the dental board.The question is always the same: how can we help them and how quickly can we get involved? Sometimes, the call comes... More »

If two practices are identical with the exception of their expenses, the practice with the lower expenses will have more value. Unfortunately, we often find that fraud is the reason for excessive overhead expenses in a practice. In fact, fraud is prevalent and pervasive in dental practices. Fraudulent behavior usually begins with small actions, such as using stamps or envelopes for personal use, or... More »

Many dentists are hiring associates to help in their practices. As part of the initial interview, the topic of future equity or purchase is briefly mentioned.For the majority of practices, little or no further discussion of transition takes place after that. Thus, instead of having a future buyer, the result is a messy breakup. There are many reasons why practice owners choose to have an associate:... More »

There are many reasons why dentists might want to have their practices appraised. Some of these reasons include: Sale or purchase Associate buy-in Partner buy-out Mergers Death or disability Estate value Divorce No matter what the reason for the sale, it’s important to understand the term “value.” There are three values for most dental practices: Seller’s Economic Market... More »

Our organization has served dentists considering transitions for more than 30 years. We find that many dentists are planning for transition at an earlier age — from 35 to 60. In the past, the majority of dentists waited until their late 60s to early 70s to retire, and then realized their practices had decreased in value. The value declined because they had taken more time off and served fewer younger... More »

As dental practice brokers, we hear all the sad stories about failed associateship arrangements. In almost all instances, the parties enter into an associateship with the best of intentions, but, somewhere along the way, problems develop and statistics show that about 70 percent of all dental associateships fail. Let’s take a look at a few of the most common causes for these failures and discuss some... More »

Last week, I was again asked to give my opinion about the merits of starting a practice from “scratch” as opposed to purchasing an existing practice. The answer is an easy one if there is an existing practice for sale in a location that appeals to you. So, as an example, let’s compare Dr. A, who chooses a start-up practice, with Dr. B, who purchases an established practice. Dr. A decides to start a... More »

Did you buy the “practice” you thought you were buying? As a dental broker representing both buyers and sellers (but never at the same time!) and a practice-management consultant, I have been engaged by lenders and buyers to help them work their way through practice purchases that appear to be going sour. In 80 percent of the situations, the problems they are confronting should never have happened... More »