Qualitative Questions to Ask When Buying a Dental Practice

Once you’ve decided to explore buying a dental practice, there are a lot of things to consider in choosing the right firm. And not all of them will be easily quantifiable. Here are a few items to investigate that might not be in the financial statements of the dental practice for sale you’re looking at.

The business location?
Check out the building in which the practice is located. Is it well taken care of? Is the appearance inviting and professional? How old is the structure. If it’s more than 20 years old, you may find yourself dealing with a lot of old building issues like plumbing problems or leaky windows. Drive around and get a sense of the general quality of the area. What kind of neighbors will you have? How will patients feel about coming to that part of town? Talk to nearby businesses and give the police a call to find out the crime history of the area. If you find what seems like an easy sell dental practice, the location could explain why.

How friendly is the local medical community?
Obviously you’ll want to know about your competition. Look through the phone book and find out how many dentists there are in the vacinity. But beyond that, you’ll want to find out how the local medical community takes to newbies. Doctor referrals can be valuable for building clientele, especially for transplants. On the other hand, doctors can be just as effective at steering patients away from you if they’re not happy to see an outsider. Have lunch with a few local doctors in an area before you commit to buy a dental practice. Many dentists don’t realize their responsibility to sell dental practice goodwill along with the physical assets.

Is the business well situated with policies and technology?
Once you’re ready to take a closer look at a dental business, look out for changes you’d have to make in the first year. Is the charting system efficient and up to date? Will equipment have to be upgraded soon? Will you have to raise prices significantly to stay profitable. If any of these items have been neglected too long you’re likely to experience some maintenance pains sooner than you may like. These costs should be reflected in the price of any dental practice for sale, but might not be if you don’t bring them up.

How does the staff feel about the change?
Human resources make up a great deal of the value of an office. People who know your equipment, filing systems, patients, when garbage day is, etc. will make your transition much easier if you can get them onboard with the change. If you sense an exodus of staff coming as soon as the owner retires, factor that cost in. Make sure you get along with your staff and do what you can to make the transition easy for them. They’re going to be the one’s training you on how to run your own business.

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