Back in March we posted a blog titled “What is Your Biggest Expense?” that focused on the need to look at your financial world from a consolidated perspective. This is the first of two additional blogs whose purpose is to lay the foundations that will help, in this case, young dentists focus on a consolidated approach to their finances and which we will call “Wellth” for Dentists.
As a new graduate from dental school…
“How is my practice doing compared to other practices out there?” A common question that we are often asked particularly by dentists looking to sell their practices. Sometimes the answer is “not as good as it could be, but nothing that a few tweaks couldn’t fix.” The real question of course is how do we know; how could you know if your practice is doing well or not? The answer to that question should…
In a market that at times seems to have gone crazy, how do you know what to actually pay for a dental practice? There is no question that today’s (2017/18) dental practice purchase and sale market is often very irrational with practices selling for as much as 200% of gross revenue. In this kind of market, can you really know what is enough and what is too much? Let’s look at how to come…
Chances are pretty good that if you are reading this you are a dentist, or at least in someway related or connected to a dentist. That being the case, in response to the title of this blog, you may be thinking that your biggest expense is your rent or maybe your dental supplies, certainly it could be your staff costs or perhaps the cost of your associates if you have any. If you guessed…
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. The survey…
If you have a medium to large sized practice you have no doubt been contacted by one of the dental corporate buyers offering to acquire your practice. By way of background there are three primary corporate buyers (the “Corps”): Dental Corporation of Canada (DCC), Altima Dental and Vibrant Dental Group or 123 Dentist. Dental Corporation of Canada was founded in 2011 and is the largest of the three with approximately 250 locations. Altima Dental…
Knowing how many active patients a practice has should be one of the most important metrics for virtually all buyers, and correspondingly should be an important metric for all sellers. While most sellers and buyers would agree with that statement, the concept of an active is one fraught with misunderstanding and confusion. The reason for this is pretty simple – there is very little consensus about what an “active patient” actually is. To clearly…
A question I get all the time is “What should the value of a practice be as a percentage of gross?” Not only is the answer immaterial, the question itself is irrelevant. What you do need to know is that there are three fundamental economic components to any business. The first component is revenue, the second component is cost, and the third component is profit. The third component (profit) is a function of subtracting…
Most dentists will sell two things of great value during their lifetime. They will sell their home and they will sell their dental practice. By far the most complicated transaction of the two will be the sale of their dental practice. Hardly any dentists will choose to sell their home without engaging a Realtor, however, many will choose to sell their practice without the assistance of a broker. What they don’t fully understand is…
Perhaps “Never” is a bit strong, however I am reminded of the flood story. A devote man is trapped on the roof of his house during a flood – I know you’ve heard this one, but in case you haven’t . . . Being a good man, he prays to God to save him and he has total faith that God will save him. After a while someone comes along in a row boat…
