Practice Sale

If you own a dental, optometry or veterinary practice, and thinking of selling your practice, we have the expertise to get you the best value in the shortest time possible.

If you are thinking of buying an existing practice, we will get you started and help you find the right practice that meets your price and location requirements.

Buying an existing practice vs. cold-starting a new one

It makes a lot of sense to buy an existing practice for many reasons. Assuming a 60% overhead & 5% growth rate, it would take you 3-4 years to pay off your investment. On the other hand, if you cold-start a practice, it may take you 6-10 years to achieve similar annual billings.

A few things to consider when buying an existing practice:

• Location: The proper location is critical. If you are new to the area, I strongly recommend doing a demographics analysis. You need to research the community's economics, population, unemployment rate, ethnic background & future growth.
• Active patient count: The number of active patients in an existing practice dictates how well you will do in the early days of ownership and beyond. The higher the patient count the better, as this provides you with a cushion in case of patient attrition. The more the better. You simply get what you pay for. The higher the price, the higher the patient count.
• Age of patients: Depending on the type of services you provide, age of patients is important. The best is to have a cross section of ages.
• Number of new patients: A practice where the owner has been cutting back on his/her practice time and not accepting new patients is not as good as a practice with 10-20 new patients per month. A healthy in-flow of new patients will reduce the effect of patient attrition.
• Profit margins: Understanding the overhead is a key ingredient of successful dental practice acquisition. There is a dramatic difference in value between a practice with a 70% overhead vs. another in the 50% range for example.

Are you considering buying an existing practice? If you answered yes, then we can help. Contact Alan Rustom and find out what's available.