Regardless if a dental practice buyer just completed dental school or has been planning to purchase for years, they all want the same thing, i.e., a financially sound dental practice. A potential buyer usually looks for a dental practice for sale in New Jersey where they can provide the type of dental services that excites them and keeps them engaged. However, that can be pretty nebulous. So, how can a buyer determine if a specific practice will allow him to succeed? This article discusses some vital attributes of dental practice that a buyer must consider before purchasing it.
The Financials
Buyers must closely examine the dental practice’s financials. After all, this is arguably the most significant purchase they will make, and they rely heavily on bank financing. Clean and organized financials of the dental practice for sale New Jersey will make buyers more comfortable moving forward with the purchase offer. Even an individual can get a professional third-party valuation to understand the fair market value of the shortlisted practice.
Practice Statistics
The buyer must know if they can at least maintain and preferably increase the dental practice’s productivity while performing all the dental procedures that their patients expect. Moreover, it’s recommended to see if the previous practice owner has solid policies and procedures to keep the practice running and ensure getting paid for the work.
Here are some statistics that an individual must know before buying the practice:
- Average treatment wait time
- Staff turnover rate and tenure
- Average hygiene wait time
- New patients per month
- Referral patterns
- Office procedure manuals
- Collection Policies
Buyers can also ask the seller for a few representative weeks’ schedule to assess the procedure mix and pace to determine if it’s best to sign the purchase agreement.
Practice Space
These days, dental practice buyers usually want a minimum of three operatories, and some prefer more. An individual should look for a dental practice, a space that can be expanded to meet his needs and plans. Moreover, buyers want to picture themselves in practice, so purchasing one with a clean, organized, and somewhat depersonalized space is better.
In addition, a person must check all equipment installed in the dental practice. Ensure every piece of equipment can function well for at least five to seven years.
Practice Location
Another critical factor in a dental practice for sale in New Jersey is the location. A buyer must check if the shortlisted practice is on a busy street with good signage and if there is plenty of parking space. Is he one of just a few dentists in the city? Will he have to share the building with other medical professionals? Is the cost of living reasonable? Do a bit of investigation to choose the right practice location.
Conclusion
Every potential buyer wants to purchase a dental practice where they can build a successful career and life. If an individual is considering a purchase, assess the practice based on the above-discussed attributes and make an intelligent decision. It’s even better to hire professional real estate agents specializing in dental practice sales and purchases to secure the best deal.
