It’s the time of the year that many practices will be reflecting on the past financial year. Profit and loss statements will be produced and tax returns completed. For many practices it was perhaps the best financial year in their history. Owners will be considering expanding or developing their own premises. New South Wales or…
The importance of the items fee report We wrote about this several years ago but have found it more relevant recently and we have accordingly provided an updated version below. The items fee report is perhaps one of the most underutilised pieces of information when considering whether to purchase a practice. Each practice management…
**The Lease Offer** You’ve found an excellent area to start-up in and tenancy to lease. Now what? The landlord or its agent will provide a lease proposal or heads of agreement. This covers the key terms of the lease and is negotiable. However, it is important to note that any lease proposal or heads of…
Associate buy-in & Corporate offers This is an interesting and somewhat controversial topic. The scenario typically unfolds in the following manner. A dentist owner nearing retirement starts to think about selling their practice. They ideally want their associate dentist to buy-in for a share of the practice or to purchase it outright. However, the owner…
The Haggle When we purchase items such as a television or a car we all want to feel like we got the best deal possible. It is disappointing when we find out our friend got a better deal on that new television or that new car. People try to translate this over when purchasing a…
Most associates will ponder this thought at some point in their working careers. The Covid-19 Pandemic has perhaps bought this thought to the forefront for many associates who may be at a crossroads. Below is a reworking of an article I have written in the past. Traditionally, practice ownership was a rite of passage for…
So you have found a dental practice that meets your criteria and you have decided to purchase it. In this article we’ll discuss the sale process and what is required. 1) You need to have a buying entity setup. Ideally have this setup when you know you’re interested in ownership rather than when you find…
Profitability Vs Cash Flow This is perhaps one of the least understood aspects of dental practice ownership. I have even had dentists who have been owners for many years fail to understand the difference. For any new practice owner in today’s high risk climate it is important they understand this concept thoroughly before embarking on…
**The Biggest Challenge Facing Dentistry** Someone asked me what the biggest challenge facing dentistry is going to be in a post-covid world. Simply put – the biggest challenge will come from within the profession. It will be significant price discounting. I’ve written about this before. I think the most susceptible areas will be medium SES…
One aspect of practice purchase (or sale), that isn’t often considered is the leave entitlements for employees and their transfer to the new owner. There are quite a few aspects to this but it is important that you use a good commercial lawyer for a purchase transaction as there are a multitude of factors that…