Dental Practice Transitions: Buying or Selling
When you choose 1 Source Solutions to work on your behalf, you can rest assured that you’ll receive expert guidance every step of the way for entering or exiting a practice. Our knowledgeable dental practice advisory team will help you navigate the selling or buying process with great care and planning to determine transition options.
Committed to your professional success, our experienced transition consultants are here to provide the support you need for building dental practice partnership arrangements between parties, identifying and understanding contractual matters, weeding out uncertainty, determining liability consequences and benefits and making important decisions for successful practice transition!
NAVIGATING THE SELLING OR BUYING PROCESS
An important transition in your professional life as a dentist is planning to retire or relocate your practice, or as a recently certified dental professional finding and purchasing an established practice. Selling or buying a dental practice can be a challenging, complex and time-consuming process and requires solid advice and sound guidance from a resource you can trust.
When you choose 1 Source Solutions to work on your behalf, you can rest assured that you’ll receive expert guidance every step of the way for entering or exiting a practice. Our knowledgeable team of advisors will help you navigate the sell or buy process with great care and planning for determining transition options.
Committed to your professional success, our experienced transition consultants are here to provide the support you need for building dental practice partnership arrangements between parties, identifying and understanding contractual matters, weeding out uncertainty, determining liability consequences and benefits, selling a dental practice, and making important decisions for successful practice transition!
AGREEMENT PROVISIONS
The dental practice buy-sell agreement can be laden with risks, gaps and peril. Determining responsibility and liability between parties and ensuring that asset transactions and other important items are drafted into the purchase or sale of a dental practice can help avoid disputes that might cause ill will, the dissolution of a practice and, in some cases, litigation.
While every practice and its partners think it won’t happen to them, it’s essential to consider what happens if it does. Arbitration is a much less painful and less costly option than going to court. If you’re considering selling or buying a practice, or considering a partnership with another dentist, it would be wise to understand how having an agreement with provisions for binding arbitration as a mechanism for resolving disputes can make sense and benefit all parties.
With your trusted dental practice advisory, you can count on our contract review expert to provide a comprehensive review of agreement provisions and options, including sound advice for a smooth transition before entering into a buy-sell agreement.
DUE DILIGENCE WHILE TRANSITIONING A DENTAL PRACTICE
When it comes to thoroughly understanding the business of a dental practice, there is a lot to know before completing the investment. Since most dentists practice an average of 35 years, performing a detailed evaluation and audit of the practice is the best way to determine its equity and measure its fair market value.
Using an income-based and market comparison method, our trusted dental practice advisory will develop a reasonable and useful evaluation taking into account the unique features of a practice (no two practices are the same) and providing thorough analysis of its critical components, key drivers, discretionary cash flow, annual net profits or annual revenues, expected revenue streams and challenges. With so many factors to examine, our knowledgeable team of dental consulting experts will help you navigate the complex process of due diligence and plan for practice transition success!
COACHING & TRAINING PROGRAMS
1 Source Solutions’ comprehensive coaching and training programs will help facilitate improvements for your practice, uncover dormant revenue opportunities and allow your team to achieve their highest potential. Our training programs include education about Dentrix software and Eaglesoft software.
Soft-Tissue Laser Certification Courses – More than just a slide show and video presentations, participants will have the opportunity to perform live, hands-on exercises and leave the course with a renewed dedication to patient care and practice growth
Dental Marketing Services – Your website is your virtual business card. What is yours saying about you? Is it optimized to rank high in web searches? Is it modern and user-friendly? Does it work from a mobile device? What pages are most popular for visits? Are you a good candidate to run pay-per-click dental advertising and dental promotion to drive additional traffic?
OVERHEAD
With the rising cost of rent, equipment, lab fees, staff salaries and other practice fees, the cost of doing business can take over your bottom line and have great impact on your profits.
Reducing expenses is a difficult challenge that dental practices face and often leaves many struggling with how to control overhead. In simple terms, the more you invest in saving time, whether it is a small investment or big investment, the more opportunity for positive return on investment. Anything that saves time, increases productivity, saves money and ultimately strengthens the long-term success of your dental practice is positive.
Considering everything from the largest expenditures to the smallest fees, we provide insight and expertise on the financial side of opening and sustaining a profitable practice.
ACCOUNTS RECEIVABLE & DEBT
In dental practice transition, there are a variety of ways on how to handle accounts receivable and debt recovery. The most common are: (1) the seller keeps the receivables and the buyer collects them as a courtesy for a fee; (2) the seller keeps the receivables and collects them him or herself’ or (3) the buyer pays additional consideration to the seller and collects the receivables post-closing of the buy-sell agreement.
The question you should consider, is it beneficial in buying accounts receivables of a dental practice?
By determining the seller’s accounts receivable and aging early on, we can help both parties agree on a fair purchase price for the accounts receivable based on dollar amount and historic collection performance, or if the buyer will collect it as a courtesy, he or she will establish a small administrative fee.
1 Source Solutions can help you understand the solvency and profitability of a dental practice and lay the groundwork for seamless transition of accounts receivable and debt recovery when determining if a practice is a viable option.
Build a more profitable dental practice with 1 Source Solutions. If your practice is located in Los Angeles, Orange County, Long Beach, South Bay, Torrance, Inglewood, Lawndale, Irvine, Mission Viejo or all of CA and you need dental consultants near you, then call us at 310-344-5846 for a complimentary consultation.