What to Know when Purchasing a Dental Practice

Deciding where to buy, how to handle it, and what kind of dental practice to purchase is a very important step in the career of a dentist. There are many essential decisions to make and key factors to examine as you search for the perfect dental practice that meets all of your needs.

Do Your research

Pace yourself. You are building the foundation of your future. Where do you want to live, how responsive will the community be to your new practice, how much of a rapport do you already have with the community?

Location Location Location

Think on where you’d like to live. You’ll want to be a big part of this community, so you’ll need to make sure it’s a good fit. Dentists who involve themselves in community events and organizations are usually successful as they are meeting people and networking all the while. And shortening your community wouldn’t hurt either. Avoid a long commute and you’ll have the opportunity to spend that time with friends and family. That’s not a bad trade off.

Establish yourself amongst people you can relate to and people you can enjoy. Your practice and your interpersonal life will reap the benefit. Do you like the suburbs, or do you want to live in more of a rural community? Let the location of your competition inform your decision. Will your spouse be able to find work? Will your kids end up in a school district that will nurture them and grant you piece of mind?

Deciding on the Ideal Practice for You

Are you pursuing a specialized dental practice or a generalized dental practice? Who is your competition? Will you be able to gain referrals from local practices (and likewise return the favor)? Who is your competition and is there room for your particular niche? What is your working schedule? You’ll want to establish a business plan that is meticulous.

Seek a Valuation

Seek an appraisal through a certified public accountant. A professional with experience in this industry is preferable. This way you’ll gain a better perspective. This will give you necessary information in making a purchase and could save you plenty.

Enlist Support

Trying to save money by being completely self-sufficient is a poor decision when you plan on purchasing a dental practice. There are many areas where you’ll need and benefit greatly from the expertise of others. In the long-run, investing in advisors will save you a lot of trouble. Here are some people you might want to have on your side:

• A tax accountant with a history of guiding dental care practices and other small businesses on maximizing deductions and remaining tax compliant. You will want an accountant who can help you develop tax-saving strategies. You will need a certified public accountant to advise you on the best entity structure for your small business (S-Corp, C-Corp, LLC, PLLC, Sole Proprietorship).
• A Bookkeeper who has familiarity in a bookkeeping software system like Quickbooks. A certified Quickbooks Advisor is a title bestowed upon a bookkeeper which says the person is certified by Quickbooks as knowledgeable with the accounting program.
• Legal counsel to review documents and legally protect your interests.
• A consultant for your new dental practice will most probably prove invaluable in the long run, helping you navigate toward success.
• Right at the beginning, you should establish a relationship with a bank. Getting prequalified, and ready to finance, informs how much you can afford when putting in an offer.
• An insurance agent will evaluate risk and assess the value of the business to see just how much coverage you’ll have to have.
• It is smart to seek the aid of a mentor that has experienced similar circumstance to those you’ll face.
• A marketing pro that knows online marketing.

Build the team that will help you get things right.

Tax CPA John Huddleston has a law degree and masters in tax law from the University of Washington School of Law. He has been a guest tax expert on the radio. He advises small businesses in the Seattle Bellevue Tacoma & Everett area on various tax and accounting issues. His firm, Huddleston Tax CPAs, also provides tax preparation service, QuickBooks consulting, business valuation, general accounting and bookkeeping service. Profile information on CPA John Huddleston and the CPAs employed by Huddleston Tax CPAs is available at CPA tax accountant profile. Seattle CPA John Huddleston is a frequent publisher of tax saving ideas.