We draw inspiration from what we love – our families, friends, and, yes, hopefully our work. If all of these areas are moving in the right direction, we’re able to overcome the daily challenges life throws at us. Often the “work” world is the area most feel the need to improve to reach the point where they love all the different components of their world. If you aren’t inspired and have the aspiration to own you need to understand how to start and finish the path to ownership!
There is nothing easy about buying or selling a practice and each transition is unique and multifaceted. Through NDP’s experience in practice transitions, we have come to one main conclusion – the absolute FIRST thing you must do is make sure you like and love the doctor and like and love the area….this means you AND your family. Owning a practice, while only a piece of your overall life, will impact all areas of your life…this can be a positive thing if done the right way.
While there is no one certain path to finding the right practice….there are a few steps we can suggest to finding the right practice to avoid some potential pitfalls…..
1. Figure out what you want. This will come down to the location, doctor, philosophy, feel of the practice, and lastly the future opportunity.
2. Once you have a practice in mind…..take a closer look. Get to really know the doctor, the staff, patients, and the area.
3. Begin your due diligence. You must review and verify all the relevant information about the practice you are considering. Both financial and operational. The main goal during this process is to ensure you have all the information needed to accurately assess the risk and potential.
4. Understanding the transition. In order to ensure a smooth transition, start the process before placing an offer. You need to compare different scenarios to see which type of transition makes the most sense and how it will all occur. Both you and seller need to be on the same page!
5. Negotiating the deal. During this process you want to remain focused on the ultimate goal of making the deal worth it to both you and seller. We suggest offering a price that is fair and reasonable to all parties involved and one that you would be willing to accept if the shoe was on the other foot.
6. Getting key leaders involved early. It is important to surround yourself with a team of experienced people who know and understand the dental industry. You want to secure lending with banks that are familiar with these deals, lawyers that know what to look for in the contracts and charge fair rates, and consultants to help grow the practice. NDP prides itself on being the person in your corner facilitating the communications between these key leaders to ensure the plan stays on the tracks and the goal remains insight.
7. Completing the purchase. Closing is the final step in the process of purchasing a practice. This occurs when lending has been approved, all documents are signed, delivered, fully executed, and the seller receives the money from the buyer…the deal is officially done and you are an owner!
NDP appreciates how intricate and involved each transition can be and we’re excited to share our experience in your unique situation to help you have a successful transition…A house is only as strong as its foundation and the success of transitioning a practice is defined by how well you perform the steps above.
If you are interested in ownership please Contact NDP today for a complimentary review of the financials and your opportunity!
