In today’s weakened economy, while many other businesses are struggling, the dental field is growing. People everywhere will cut a lot of things out of their budget, but dental care isn’t typically one of them. While they might not like going to the dentist, we all know that it is necessary and something we must do at least twice per year.
For any aspiring dentist, getting a dental practice valuation and buying a dental practice is a big financial decision, even in today’s market. They need to gather the latest and most accurate data to make sure they are getting a good deal. There must always be a comprehensive examination performed so they can avoid buying a dental practice with unwanted characteristics or other problems.
With that in mind, we are going to take a look at some things new dentists should consider before buying a dental practice in a weakened economy:
The Number Of Active Patients- patients shouldn’t only be registered, but they must also be active and regularly seek treatment. New dentists must make sure that the practice has an accurate number of active patients, based on the management software data. If a registered patient hasn’t returned in the past 2 years, he/she should be considered inactive. This is a realistic way to know whether the practice has a steady income.
Seller’s Or Buyer’s Market- it is a good sign if there are few competing practices in the area and there’s a good demand for dental services. Even in today’s economy, a seller’s market can be sustained if there is a good growth of demand.
Location- location is crucial for any business, including dental practices as excellent visibility will attract new patients. It’s well worth the time to drive past the dental practice at different times of the day. Make sure it has good visibility, both day and night. Ample parking area is also important to ensure that the practice can always run at full capacity.
Valuation- the selling and new dentists should agree on a third-party appraiser who will provide a fair dental practice valuation. It is important to choose a reputable and certified appraiser with experience in the healthcare sector.
Contact Pluto Partners
To learn more reasons why dentists might want to get a dental practice valuation and sell their practices, contact Pluto Partners today and speak with a Healthcare Business Advisor who can answer any questions you might have.
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