Preparing for Practice Ownership – Building a Strong Team of Advisors

Buying a dental practice is one of the most significant purchases that a dentist will make in their career. A potential buyer of a dental practice must assemble a team of strong advisors to facilitate the transition. Below is a list of members that are crucial to a successful transition:
• Dental Attorney – Utilize an experienced attorney who understands the nuances in purchasing a dental practice. The attorney should represent the buyer’s interest in reviewing the asset purchase agreement, negotiating the real estate or commercial lease agreement, and any other documentation involved in the purchase. The attorney should also assist in setting up the corporate entity that will be purchasing the practice. The role of the attorney during the buying process should always be to protect the buying dentist’s interest while preserving the goodwill between the buyer and the seller during the negotiation process. After the purchase process, the attorney may then assist in employee handbooks, office policy manuals, non-compete agreements, and other employment law issues.
• Dental Accountant – An accountant with experience in working with dental clients will be able to assist the buyer in evaluating practice financials, cash flow, and the price to purchase the practice. A dental accountant will be able to explain the tax benefits when choosing what type of corporate entity the doctor should establish. After purchasing the practice, the dental accountant should continue to assist the dentist in setting up and monitoring financial record keeping systems.
• Dental Lender – Choosing a lender who has experience in financing dental acquisitions can assist in providing a smooth and timely transition.
• Dental Consultant– A dental consultant can provide an evaluation of management systems, collection policies, treatment planning, marketing, patient bases, etc. The analysis provided by the dental consultant assesses the overall health of the practice so that the buyer can decide whether or not the practice will be a good fit.