Volume 9: How to Buy a Visible Practice

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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.

The Professional Advisory

  1. One Year Later

  2. Dealing with Unsolicited Offers

  3. Covid-19 Practice Sales Update

  4. When is the Right Time to Sell Your Practice and Why?

  5. Partnership Pitfalls

  6. The Real Cost of a Dental Practice Set-up

  7. Smaller Practice Realities

  8. Dental Market Update - 2019

  9. Creating Your Own Most Valuable Practice (MVP)

  10. Small Practice Economics

  11. The Market is Very Efficient

  12. How Can Dental Practice Values be Rising and Declining?

  13. Hygiene as a Value Driver

  14. The Value of a Good Team

  15. Is it Time to Move?

  16. Staging A Dental Practice

  17. The High Cost of Dying

  18. Deal-Busters

  19. Patients - Attract and Retain

  20. Should I Stay or Should I Go?

  21. Is There a Buyer for Every Practice?

  22. Good, Better, Best - The Market has Spoken

  23. Smooth-Sale-ing

  24. Buying Time

  25. Patients, Patience, Patients

  26. A Real Patient

  27. Why Do a Practice Valuation? I'm not Selling

  28. Irrational Exuberance or The New Normal?

  29. Do dental equipment and dental technology affect a practice value?

  30. Finding and Being a Mentor

  31. Bigger is Better

  32. Dave's Top Ten List for Buyers (Vendors should read this too!)

  33. How Well Do You Know Your Practice?

  34. Dave's Top Ten List for Vendors

  35. What will happen to dental practice Values in the next 10 years?

  36. Your Premises Lease is an Important Asset

  37. What are Associates Thinking?

  38. There is Life Outside the GTA

  39. When Is the Right Time to Sell My Dental Practice?

  40. Mergers are a Viable Option

  41. Is Your Associate an Asset or a Liability?

  42. Has your Practice Facility Kept Up With Your Billings?

  43. The 100 per cent of Gross Myth

  44. The Past, The Present and The Future

  45. Caveat Emptor

  46. Overpaid Long Term Staff

  47. Selling your Practice in Stages

  48. A Potential Pitfall of Selling Shares

  49. Value in Your Practice Through Balance

  50. Only Trusted Staff Can Defraud You

  51. To Own or Not to Own Practice Real Estate? That is the Question.

  52. Coping With A Large Patient Base

  53. Successful Dental Practice Transitions

  54. Taking Care of Business

  55. The Investing Dentist Phenomenon

  56. Two areas to focus upon that could negatively impact the value of your practice

  57. Organize your Debt in Order to Sell your Practice

  58. Having a Better Team

  59. How Do I Prepare My Practice For Sale

  60. How Do I Prepare My Practice For Sale? Part 3

  61. How Do I Prepare My Practice For Sale? Part 2

  62. How Do I Prepare My Practice For Sale? Part 1

  63. Advice to My Son or Daughter Graduating from Dental School

  64. Transition - What to Expect

  65. Discussion on Digital X-Rays

  66. Partnerships and Shotguns

  67. Strategic Planning - How to Get Started

  68. Calling All Vendors - Practices have Gone Up in Value

  69. Purchasers: Expect to Pay More for a Practice because of Lower Professional Corporation Tax Rates

  70. Matrimonial Practice Valuations

  71. Purchaser's Guide to Affording a Practice

  72. Location Improvements Throughout Your Career

  73. Small Practice Valuations

  74. Partnerships – The Best and The Worst

  75. Changing Location When the Opportunity Comes Along

  76. Visual Presentation of Your Practice

  77. Presentation of Charts

  78. Your Premises Lease Can Be Your Worst Enemy

  79. How to Select an Appraiser for Your Practice

  80. How Are Your Billing Ratios?

  81. It Pays to Invest in Your Tangible Assets

  82. The Importance of Separate Financial Statements

  83. Five Time Frame Levels to Sell a Practice

  84. 12 Suggestions to Safeguard Computer Data

  85. How to Buy a Visible Practice

  86. Why is there a shortage of good practices today?

  87. The Importance of Equipment in the Purchase of a Practice

  88. The Balanced Practice

  89. Will My Practice Be Saleable in The Future?

  90. Buyer Be Aware

  91. Excess Profit - The Second Key

  92. Patients and Profits are the Keys

  93. Plan Ahead