Every dental Practice follows its own unique lifecycle, however, there are a few main phases it will pass through as it continues to grow and evolve that we’d like to focus on:
- Start Up & Acquisition
- Growth & Maintenance
- Sale of Practice & Retirement
Before you enter any phase, we highly encourage any future Practice owner to seek out professionals who specialize in the dental industry. There are many pain points that can be avoided by working with a CPA, attorney, banker, etc. who specialize in the dental industry and can guide you in the right direction from step one. Once you have your Practice advisory team in place, it’s time to look at the next big questions: Do I want to start from scratch or purchase an existing Practice? And where will my funding come from?
Our dental team works with doctors on both sides of the start-up. With future Practice owners looking to start from scratch we develop a business plan to help obtain bank financing for the next steps in the ownership process. This document gathers and presents information related to many aspects of your future Practice: demographics of your proposed location, expected revenues and expenses, and a breakdown of desired loan funding just to name a few. Your business plan is what provides information to banks to show your Practice is a worthy investment. More importantly, it gives you a guideline and stepping stone to launch your Practice with confidence.
If you’d prefer to purchase an established Practice, our dental team works with you to find purchase options and review these options through our Practice Scorecard Analysis and due diligence process. Much like the Due Diligence period of buying a house, this is where you have a chance to review various aspects of the Practice and determine if it’s right for you. Many items are looked at during this but we help our clients to focus on what the historical financial data of the Practice shows and how it will apply to you, your future ownership of the Practice and if this coincides with your ownership goals.
Do you have your specialized team in place? From start-up services to exiting your practice, our team serves as strategic business advisors that are there with you every step of the way.
Next week, we will be discussing Phase 2: Growth and Maintenance.
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