Dental Associate Purchase From Employer
Dental Startup – Dental Associate Purchase from Employer
One common way a dental associate purchase occurs is when the associate dentist purchases the practice from the practice they are an associate with. The owner of the practice is ready to retire, and ready to turn the practice over to you.
There are many things that need to be reviewed, but some things tend to get missed when looking at a transaction as large a dental practice purchase. Yes, we need a valuation, probably financing, insurance, accounting, legal documents, etc. But, how about the question: can I cover the workload?
Dental Associates Consolidating from Two Practice Down to One
In the situation, where the associate dentist is currently working a couple of days at one practice and a few days at another practice, the workload determination is often simple. By leaving one of the practices, it is often simple to pick up the additional time at the new practice. Expect to work 3 ½ to 4 ½ days per week.
Dental Associate Working 3 days, Retiring Dentist Worked 3 days
Working six days a week is going to be tough. But perhaps there are enough gaps in schedules to cover it all. You will have to go back and look at your schedule over the past year. You will need to review the retiring dentists schedule as well. You are likely going to have to add 1 ½ days to your work week, but you still will have to make up 1 ½ a week of work. Determine if there are enough gaps to make up the time.
Dental Associate Cannot Pick Up all the Patients of the Retiring Dentist
Often it turns out that it is impossible for the dental associate to pick up the additional time from the retiring dentist. You will have to bring on your own associate dentist. But can you afford it. That is where you accountant will come in handy. Not only will the accountant have to help you determine if you are able to make a “livable” wage while paying down the practice loans, they will need to assist to determine if you can afford your own associate.
Dental Start Up Workload
Purchasing a dental practice (except perhaps your house) is going to be the single biggest financial transaction of your life. You’ve retained a dental attorney, a dental accountant, you are working with a bank, and even an insurance provider. Allow them to guide you through the transaction. But purchasing a dental practice is not only about purchase price and legal documents, also look at external forces that make up the transaction. If you are purchasing a practice rather than pursuing a dental startup from scratch, handling workload is just as important as purchase price.
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