Frequently Asked Questions
- Why do I need a dental practice appraisal?
- How are dental practice purchases financed?
- What are the advantages of bringing on an associate?
- When is a practice ready for an associate?
- How do I recognize an especially good dental practice opportunity?
- What are the advantages to buying a practice rather than building one from scratch?
Why do I need a dental practice appraisal?
Practice appraisals are like dental radiographs. Embarking on a practice transition without an appraisal and evaluation is like surgically removing third molars without an x-ray. Having an appraisal of your practice can be crucial in many situations including selling your dental practice, adding an associate, analyzing practice efficiency, or divorce. Practice appraisals can also be helpful for financial and estate planning. A client may also have an appraisal performed and updated each year as “insurance” for their practice should anything unexpectedly happen to them. An appraisal not only identifies the price of a practice, but also contains a wealth of information needed to market a practice should the need arise. Contact Phase II Associates for an accurate appraisal of your dental practice. We appraise dental practices nationwide.
How are dental practice purchases financed?
Nearly 100% of practice sales today are cash sales. The full price is paid in cash at closing. We realize that few, if any, buyers personally can afford to pay cash, so Phase II Associates has established relationships with lenders who specialize in dental practice acquisition funding. We can help you avoid the frustration of applying to banks and other lenders who do not understand dental practices, and will waste your precious time without results. Our lenders understand the dental profession and offer quick, easy, hassle-free service. Loans are generally only secured by the practice and do not require other collateral or guarantors. Nearly all of these loans are conventional and do not require SBA involvement, which adds to the time and expense of borrowing. Phase II Associates prepares a comprehensive loan application packages for you, applies to the lender best suited to you, and works on your behalf to get the best terms and quickest service possible. Quick approvals and fast funding mean you can start earning income right away.
What are the advantages of bringing on an associate?
Bringing on an associate at the right time can be a valuable addition to your practice. When it is set up as a step toward a time defined buy-out or buy-in, it helps to maintain the referral sources and value of the practice at the time of transition. Our practice transitions team can help you choose an associate that is right for you.
When is a practice ready for an associate?
Dentists considering bringing on an associate should carefully analyze whether their practices can support one. Likewise, dentists thinking about joining a practice as an associate must be sure that the practice they join can support them. There are many new graduates that are looking for the right opportunity to join a practice as an associate and becoming a partner at a future date. Whether you are looking for an associate or are interested in joining a practice, Phase II Associates can assist you.
How do I recognize an especially good dental practice opportunity?
When looking for a good practice, it is important that you consider practice value rather than looking strictly at practice price. Price is the amount that a buyer pays a seller to acquire a practice. Value is the benefit received by the buyer from the purchase of a dental practice, and in the case of a dental practice, value is your net income. By understanding cash flow, buyers can make much better informed decisions in their best interest because they will know what income they can expect to live on. Phase II Associates can help you understand the intricacies of dental practice cash flow to ensure that your practice will provide you with an ample income.
What are the advantages to buying a practice rather than building one from scratch?
There are many advantages to buying an established practice. In a practice, the referral base and the excellent reputation of the previous doctor jump start your career. If you start your practice from scratch, it will take a good deal of time to build a referral base. That means it can also take time for you to start earning income. The economic gains for purchasing a practice outpace gains of a startup. Another advantage of buying an existing practice is that the systems and the staff are already in place. This allows the dentist to focus on patients rather than dedicating endless hours to getting a practice up and running. Another significant advantage of buying an existing practice is that funding is readily available. This is because financing sources recognize that the failure rate for dentists buying an existing practice is extremely low. If you have any further questions, don’t hesitate to contact Phase II Associates, LLC.