Three common pathways to dental practice ownership

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common pathways to dental practice ownership

This article is sponsored content brought to you by Credabl.

Whether you’ve decided it’s time to be your own boss, or simply that you’re ready to fulfil your lifelong dream of practice ownership, often one of the most common questions that comes up is whether to buy in or buy outright. While the answer may come down to circumstances and available opportunity, here are three common scenarios you should consider before making the decision.

One: Succession from your current role via a buy in or full purchase 

If you’re already working in a practice and there is an opportunity to buy in, you’ll either become a partner or take on full ownership of a practice you’re familiar with.

As a partner, you’ll enjoy continuing to work with mentors and like-minded peers with the benefit of having shared ownership. As such, it’s important to agree to clear partnership terms upfront.

If you take over as the owner, hopefully there will be a smooth transition, but ensuring there is an agreed exit strategy for the departing owner is very important. You need to know where you stand.

A huge advantage to buying into a practice is that not much changes in terms of patient-base and there shouldn’t be any downside in terms of revenue. While you will be paying for goodwill, a portion of that will be goodwill which you generated as a practitioner within the practice.

Two: Purchase a practice outright that you haven’t previously worked in  

First and foremost, you need to become aware of a practice for sale. This can be via a recommendation, or a general practice sales website or broker. If you have a preferred area, you can also approach practices directly and see if they are selling.

 When pursuing a purchase there are a number of considerations to keep in mind. On a personal level, you need to consider practice location and your required commute, suitability of practice offering to your skill set and whether or not it’s a practice you can grow. 

On the financial side, you’ll need to consider:

  • Practice financials. What are the trends from the last three years and do these financials indicate a fair sale price?
  • Practice premises. Are they leased or owned? If you are taking over a tenancy, do you have agreeable terms with an option to extend? Is the property for sale along with the practice?
  • Further investment. Is the practice going to require upgrading and additional investment after the purchase is settled to bring it in line with current technologies of your practice?
  • Patient-base. How big is it and how active are the patients? Are there any existing strategies in place to stimulate more business?
  • Fee structure. Will you need to make changes and how will the existing patient-base feel about this?
  • Staffing. How likely are staff to stay on under new ownership, and for those who do remain, are they the right staff, with appropriate remuneration packages and skills for the practice? 

Three: Start up

common pathways to dental practice ownership

Whilst very exciting, starting from scratch comes with its own important list of requirements. Our Credabl team go in depth in our guide with 9 factors for you to consider—scan the QR code below to read a copy of the guide.   

Call your local finance specialist at Credabl today on 1300 27 33 22 or visit credabl.com.au/team 

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