Commonwealth Transitions has spent years navigating the complex process of buying a dental practice in Virginia and Washington, D.C. Purchasing an existing practice offers both pros and cons, including inheriting the reputation of the selling dentist. However, if you have decided that purchasing an existing practice in Virginia is right for you, Commonwealth Transitions offers three tips for a smooth buying process.
1. Research the Area You Would Serve
While specific factual research and steps must be completed when purchasing an existing practice, a knowledgeable consultant such as Commonwealth Transitions can guide you through much of the process. Before this work begins, however, personally consider the area in which the practice is located. Questions to consider include:
- Is the area easily accessible?
- Is the area likely to grow?
- What is the size of the population, and how many dentists are already serving the area?
- What are the demographics of the population, and how would this affect operations, such as types of insurance accepted?
Look for a place in which you are comfortable and would like to live for a long time.
2. Study Practice Cash Flow
The cash flow of a practice is a vital aspect to consider before finalizing a purchase. Two practices may each be $2 million operations, but below the surface, your profits and energies might vary. If one is a $2 million practice with a single dentist, that practice could net you $1 million. If the other, though, is a different type of practice requiring lots of government paperwork, your profits might be less and you might have to spend more time and energy on handling cases.
Important questions to ask include:
- How do customers pay?
- What dental procedures bring the highest revenue?
- Will you be able to continue to offer those procedures?
Commonwealth Transitions is affiliated with the National Association of Practice Brokers and serves the entire state of Virginia and Washington, D.C.’s busy market. The specialists in this firm have valuable local knowledge about populations, demographics, and practices that can help you make sound decisions.
3. Research the Selling Dentist
Study the selling dentist to get a better idea of how the practice operates. Questions to consider include:
- Is the dentist selling due to low profits or population issues?
- What is the selling dentist’s treatment philosophy and manner?
- Are you prepared to take over all of the cases?
While you can inherit profits, always remember that you will also inherit any problems. Be prepared.
Commonwealth Transitions Bio
William Schulz, Jr., gained years of business and selling experience in the dental industry, working his way through the ranks and learning the intricacies of dental practices in Virginia. He founded the company in late 2014 to provide reliable and complete transition services to dentists.They offer many types of services, including transition, mediation, staffing, appraisals, and contract reviews.