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 – A BAS Accountant 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. Luckily, many accountants are now able to offer more advanced services as many of them now use companies, like Future Firm, to help them to modernize their accounting business and offer better services to their clients. This ensures that dentists will receive top-quality accounting from firms that use automated processes to ensure the work is being done accurately (you can learn more about that online). Hopefully, this will help dentists to run their businesses more effectively.
• 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.
Stuart J. Oberman, Esq.
Stuart J. Oberman is the founder and President of Oberman Law Firm. Mr. Oberman graduated from Urbana University and received his law degree from John Marshall Law School. Mr. Oberman has been practicing law for over 28 years, and before going into private practice, Mr. Oberman was in-house counsel for a Fortune 500 Company.
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