In a non-stop effort to make your transition into or out of a practice, we’ve answered a few common questions frequently asked.
How long will it take to sell my practice from the time I list?
The old adage, “Location, location, location” does have an impact on a sale/transition. In a good area, the transaction can happen in as few as 6-12 weeks from the time the valuation is completed. In a rural or an area in less demand it can typically take longer. In that type of situation it is realistic to assume it could be 2-5 years—if indeed it does sell. However, the length of time depends not only on the practice location but also on many other variables.
How are dental practice purchases financed?
Nearly 100% of practice sales facilitated by Consani Associates, Ltd. are cash sales. The full price is paid in cash at closing. We realize that few, if any, buyers personally can afford to pay cash, so Consani Associates, Ltd. has established relationships with lenders who specialize in dental practice acquisition funding. We can help you avoid the frustration of applying to banks and other lenders who do not understand dental practices and will waste your precious time without results. Our lenders understand the dental profession and offer a quick, easy, hassle-free service. Loans are generally only secured by the practice and do not require other collateral or guarantors. Nearly all of these loans are conventional and do not require SBA involvement, which adds to the time and expense of borrowing. Consani Associates, Ltd. work on your behalf to get the best terms and quickest service possible. Quick approvals and fast funding mean you can start earning income right away.
How do I recognize an especially good dental practice opportunity?
When looking for a good practice, it is important that you consider practice value rather than looking strictly at practice price. Price is the amount that a buyer pays a seller to acquire a practice and the price belongs to the seller. Value is the benefit received by the buyer from the purchase of a dental practice, and in the case of a dental practice, value is your net income. By understanding cash flow, buyers can make many better-informed decisions in their best interest because they will know what income they can expect to live on. Consani Associates, Ltd. consultants can help you understand the intricacies of dental practice cash flow to ensure that your practice will provide you with a successful living income.
What are the advantages of buying a practice rather than building one from scratch?
There are many advantages to buying an established practice. The biggest advantage is the patient base you’ll inherit. If you start your practice from scratch, it will take a good deal of time to build a patient base. That means it can also take time for you to start earning income. Another advantage of buying an existing practice is that the systems and the staff are already in place. This allows dentists to focus on patients rather than dedicating endless hours to getting a practice up and running. Another significant advantage of buying an existing practice is that funding is readily available. This is because financing sources recognize that the failure rate for dentists buying an existing practice is extremely low. For information on dental practices for sale in the Northwest, explore the dental practice listings on our site.