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Articles

The Professional Advisory

  1. Is it Time to Move?
  2. Staging A Dental Practice
  3. The High Cost of Dying
  4. Deal-Busters
  5. Patients - Attract and Retain
  6. Should I Stay or Should I Go?
  7. Is There a Buyer for Every Practice?
  8. Good, Better, Best - The Market has Spoken
  9. Smooth-Sale-ing
  10. Buying Time
  11. Patients, Patience, Patients
  12. A Real Patient
  13. Why Do a Practice Valuation? I'm not Selling
  14. Irrational Exuberance or The New Normal?
  15. Do dental equipment and dental technology affect a practice value?
  16. Finding and Being a Mentor
  17. Bigger is Better
  18. Daves Top Ten List for Buyers (Vendors should read this too!)
  19. How Well Do You Know Your Practice?
  20. Dave
  21. What will happen to dental practice Values in the next 10 years?
  22. Your Premises Lease is an Important Asset
  23. What are Associates Thinking?
  24. There is Life Outside the GTA
  25. When Is the Right Time to Sell My Dental Practice?
  26. Mergers are a Viable Option
  27. Is Your Associate an Asset or a Liability?
  28. Has your Practice Facility Kept Up With Your Billings?
  29. The 100 per cent of Gross Myth
  30. The Past, The Present and The Future
  31. Caveat Emptor
  32. Overpaid Long Term Staff
  33. Selling your Practice in Stages
  34. A Potential Pitfall of Selling Shares
  35. Value in Your Practice Through Balance
  36. Only Trusted Staff Can Defraud You
  37. To Own or Not to Own Practice Real Estate? That is the Question.
  38. Coping With A Large Patient Base
  39. Successful Dental Practice Transitions
  40. Taking Care of Business
  41. The Investing Dentist Phenomenon
  42. Two areas to focus upon that could negatively impact the value of your practice
  43. Organize your Debt in Order to Sell your Practice
  44. Having a Better Team
  45. How Do I Prepare My Practice For Sale
  46. How Do I Prepare My Practice For Sale? Part 3
  47. How Do I Prepare My Practice For Sale? Part 2
  48. How Do I Prepare My Practice For Sale? Part 1
  49. Advice to My Son or Daughter Graduating from Dental School
  50. Transition - What to Expect
  51. Discussion on Digital X-Rays
  52. Partnerships and Shotguns
  53. Strategic Planning - How to Get Started
  54. Calling All Vendors - Practices have Gone Up in Value
  55. Purchasers: Expect to Pay More for a Practice because of Lower Professional Corporation Tax Rates
  56. Matrimonial Practice Valuations
  57. Purchaser's Guide to Affording a Practice
  58. Location Improvements Throughout Your Career
  59. Small Practice Valuations
  60. Partnerships – The Best and The Worst
  61. Changing Location When the Opportunity Comes Along
  62. Visual Presentation of Your Practice
  63. Presentation of Charts
  64. Your Premises Lease Can Be Your Worst Enemy
  65. How to Select an Appraiser for Your Practice
  66. How Are Your Billing Ratios?
  67. It Pays to Invest in Your Tangible Assets
  68. The Importance of Separate Financial Statements
  69. Five Time Frame Levels to Sell a Practice
  70. 12 Suggestions to Safeguard Computer Data
  71. How to Buy a Visible Practice
  72. Why is there a shortage of good practices today?
  73. The Importance of Equipment in the Purchase of a Practice
  74. The Balanced Practice
  75. Will My Practice Be Saleable in The Future?
  76. Buyer Be Aware
  77. Excess Profit - The Second Key
  78. Patients and Profits are the Keys
  79. Plan Ahead

Volume 9: How to Buy a Visible Practice

Download the PDF version now!

The key location factor in purchasing a practice is visibility. Good visibility can save you promotion and advertising dollars by letting potential patients know there is a dental practice in the area. This is why dentists will pay a premium rent to be in an enclosed mall. Typically, mall rent will be 8.5% of the gross fees rather than the 6.8% in most other locations. Good signage and a main floor location make it easy for patients to find the practice.

Other factors to consider when trying to find a visible location for your practice include:

  • Parking. Free parking is a plus when building your practice. In existingpractices where there is limited parking, patients are used to it but it may not be conducive to attracting new patients.
  • Proximity to a medical practice. Combining with a medical practice or being adjacent to one could be a positive experience. The medical practice may attract many new patients and some of these could flow into your practice.
  • Composition of the community. The ethnic composition of the community should be considered, especially in metropolitan areas such as Toronto where pockets of certain nationalities could have a positive or negative impact on your success.
  • Medical/dental buildings. Purchasing a practice in a medical or dental facility where there are already multiple dental practices could prove difficult. But this type of situation could have a positive outcome if there are dentists in the building who are considering retiring over the next few years. Their practices could be incorporated into yours.
  • Residential neighbourhoods. Locating in a residential area is preferable over being in a commercial area as the practice could get lost among the other commercial enterprises.
  • Community growth. Many purchasers are looking for expanding communities to enhance their new patient count. A recent valuation of a practice that was set up in an expanding area that did not have other plazas or malls to compete with revealed an exceptional new patient count. This, in turn, gave rise to rapid growth of the practice. In established areas there are fewer new practices being set up and as a result the patient base is quite stable.

There are practices with excellent patient bases in less than desirable facilities. These practices can be moved to a more contemporary setting in a nearby location. The number of years left on the lease will be the key in the moveability of the practice. Senior dentists should keep a short lease so that the practice can be moved after it is sold to a new buyer.

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