What is Your Practice Really Worth?

Are You Getting the Right Advice?

Most dentists rely on advice from their accountants and financial advisors when it comes to speculating the value of their practices.  Under most circumstances this would seem reasonable, however, sometimes this blind faith can lead to disastrous results.  Let me outline two such scenarios that we have had to deal with in the last 12 months.

Scenario #1 – The Problem with Over Generalizations

We recently had a specialist who was…

Read More

Your Voice Matters

The Dental Industry Association of Canada (DIAC) is an association of dental manufacturers, distributors, commercial dental laboratories and service providers committed to the highest standards of service to dental professionals in Canada, and Hill Kindy is a proud member of the team.

Our annual “Future of Dentistry Survey” is one of the most important sources of information and has recently been updated with questions that reflect the evolving dynamics of the Canadian dental profession. …

Read More

Why Wait When The Time Is NOW!?

Imagine you are running a 40K marathon and you slip and fall in the first 100 yards – it is possible, if you are good enough, to get up and still win the race.  Now imagine that you are winning the race but you slip and fall in the last 100 yards – in this case, it is much less likely that you could get up and still win the race.  The point being…

Read More

What Is An “Active Patient”?

Knowing how many active patients a practice has is a very important metric for most buyers and correspondingly should be an important metric for most sellers.  Most sellers and certainly most buyers would agree, yet this is an area fraught with misunderstanding and confusion.  The reason for this is pretty simple – there is no authoritative definition for an “active patient.”  I have seen active patients defined as patients with a booked recall appointment,…

Read More
Accounting, finding the right accountant, accountant for dental practices, dental practice accounting

How to Know if You Have a Good Accountant

During your career you are going to need to interact with a number of professionals.  You will need an accountant, at some stage a couple of different lawyers, if you are smart probably a practice management consultant and, if you are really smart, a good financial planner.  These professionals come in all flavours: really good, good, so-so and terrible.  Picking the right flavour will contribute in a huge way to the success of your…

Read More
boardroom, dental practice brokerage in Ontario, Niagara, Greater Toronto Area, GTA, business valuation, dental practice appraisals, buy a dental practice, sell a dental practice, negotiations, buyer representation

Deal Killer #1 – Greed

Greed is probably the most effective deal killer of them all.  It doesn’t matter whether you are the buyer or the seller; if you get greedy, you can pretty much count on killing any deal that you are trying to negotiate.

Both buyers and sellers want to feel good about the transaction. Such a transaction usually entails an amount of money which is material to at least one of the parties.  Unless there is some overriding…

Read More
Dental lawyers, lawyers specializing in dental practices, dental practice brokerage in Ontario, buy a dental practice, sell a dental practice, valuation, negotiation

Why A Dental Lawyer?

Have you ever referred a patient to a specialist?  Chances are the answer is yes, and it’s very likely you referred that patient because you felt the specialist could do a better job than you.  This would be pretty much the same reason that you would hire an architect as opposed to as general contractor to design your dream home.  So while this all seems perfectly logical, why do dentists use their “family” lawyers…

Read More
dental practice brokerage in Ontario, buy a dental practice, sell a dental practice, transition planning, staff, hygienists

Can Hygienists be Independent Contractors?

(Disclaimer: This article is for general knowledge only and should not be considered as legal advice.  We are not lawyers and as such, cannot and do not provide legal advice.  If you feel that any of the following, or any matters related to the Employee/Independent Contractor relationship may apply to your situation, we encourage you to seek out proper legal counsel.)

According to many different sources, in order to be considered an independent contractor…

Read More
dental practice value, dental practice appraisals, dental practice brokerage in Ontario, Niagara, Greater Toronto Area, GTA

Revenue/Patient & Practice Value

In theory, the value of a dental practice is more or less equal the sum of the profit for the five-year period following the purchase of the practice converted into today’s dollars. In order to assess the likelihood of being able to maintain a profit, we need to know how probable it is for that profit to be sustainable over a five-year period. Profit is revenue less expenses, so an important aspect of…

Read More
buy or sell a dental practice in Ontario, dental practice brokerage, practice appraisals, business valuation, negotiating sales

What to Look for in a Good Appraisal

Whether you are a buyer or a seller, you are going to be dealing with appraisals.  As a seller, you want your appraisal to justly represent the value of your practice; if it doesn’t, buyers will become suspect and immediately dismiss the idea of a purchase.  As a buyer, you need to be able to determine whether or not the appraisal you are reviewing fairly represents the true value of the practice which…

Read More