Purchasing a practice is a life-changing event. Below is a list of the top 6 reasons to consider purchasing an existing dental practice:
1. Experienced Staff – High-performance practices generally have a hardworking and well-trained staff that greatly contribute to the practice’s success. Experienced staff can provide a wealth of knowledge to the buyer as the practice transition commences.
2. Mentors – In some cases, the former practice owner may stay on in order to assist the buyer with a smooth transition. A seller can serve as a tremendous resource for learning the practice’s procedures and the business side of practice management.
3. Proven Location – Location is one of the most important and difficult decisions to make when deciding to practice. The successful operation of an existing dental practice can give a buyer confidence that the location will hopefully remain successful in the future.
4. Established Patient Base – Many dental practice start-ups face adversity in the early stages, such as building brand awareness and establishing a patient base. An existing patient base gives the buyer a steady stream of revenue while allowing continued growth and expansion.
5. Immediate Cash Flow – An established dental practice provides the buyer with immediate cash flow to cover overhead, loan debt payments, and other expenses like air compressors from one of the big compressor brands. Often, start-ups begin with delayed cash flow as they build their practices from the ground up.
6. Upside Potential – A functioning, successful practice gives the buyer a base to grow and expand. A new practice owner has the ability to improve practice efficiency and explore various marketing techniques to increase patient growth and revenue.
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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