Every year, there are thousands of transactions involving buying and selling of dental practices. However, few people take their time to focus on the real motivation behind buying a dental office considering that such a purchase requires a huge financial investment. There are various reasons why people buy and sell dental practices but you find that in some instances, very crucial processes are overlooked during the transaction. For example, a dental practice appraisal is one of the most vital processes before you can close a deal on buying the practice. The dental practice appraisal will give you the actual value of the business least you end up paying more for a dental practice for sale that is not worth the amount that you will pay for it. Apart from conducting a dental practice appraisal, be sure about the reasons why you want to purchase available dental practices. Assuming that you decide to go ahead and buy a dental practice, are you buying the facility to upgrade from your current office, buying out a competitor to reduce competition or trying to increase traffic to your existing dental office by buying an additional patient base. All these are some of the reasons why dental practice sales are a thriving business. The question therefore remains what factors should you consider before buying a dental practice?
Consider the Timing
The idea of buying a dental practice right after your dentistry training is a bad idea. For starters, there are very few financial lenders who would be willing to finance such a transaction. Without the financing, it is difficult to automatically buy an active dental practice. There are still people who would have the finances to buy a fully stocked dental practice after a dental practice appraisal but still, this would be a bad move that would have very unprecedented results. Being straight out of school, your experience in dentistry leave alone managing a dental clinic is very limited. It is way better to start off as an associate dentist in one of the more established dental centers near you. This way, you will be hands on about the goings in a dental clinic while at the same time gaining some management skills in the process such that when you get to buy a dental practice in Chicago, you will have already established yourself as a good dentist and manager capable of managing your own facility.
Think About the Location
Most people nowadays pay very special attention to convenience. This convenience is in the context that your dental office should be strategically located and have ease of access using any means of transportation. This is one of the factors that will increase traffic to your facility. These means that during the buy and sell a dental practice transaction with the seller, establish the real reason why the seller is very eager to sell the dental office. It could be that the location of the facility does not support the business environment of a dental clinic. If you happen to buy the same facility with the hope that things will change for the better, you will still encounter the same problem as the location has not changed. Ideally, look for a dental office on sale in a busy street with ample parking and a few shopping malls and other amenities around. Such areas attract a lot of people any time of the day and most people will be looking to do their shopping and still sneak in a few minutes at the dentist’s office. You stand to benefit immensely by giving people this type of convenience.