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…
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,…
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…
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…
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…
(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…
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…
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…
When it comes to comedy, timing is everything. When it comes to selling your dental practice, I believe the same is true. Over the course of our years in the dental industry, we have encountered one important question at most of our lectures, seminars, and meetings: “When should I sell?”
To properly answer this question, there are several factors that you will need to consider:
