When searching for a dental practice for sale in Virginia, you likely have a long list of things that you want. These wishes probably include a fair price for the practice, a quality office space, modern dental equipment, and well-trained staff. To achieve these goals, you might need to partner with a brokerage firm located in Virginia that understands the dental business as well as the community real estate market. As the only brokerage firm headquartered in the state that specializes in dental office mergers and acquisitions, Commonwealth Transitions can provide a high level of expertise.
An Overview of the Process
At some point in your dental career, you might consider purchasing your own practice. During the initial stages, you will likely envision the ideal parameters of your dream Virginia dental office. Numerous factors will likely leap to the top of your wish list:
- A desirable professional building in a great location
- A great opportunity for career and personal growth
- The chance to help a variety of patients
- The ability to run your own family practice
- The Reality of the Transaction
While your dreams play an important role in any big career decision, you will also face the need to make hard and practical choices. You will need to find a dental office for sale Virginia that meets some or most of your requirements. You will also have to deal with paperwork, documents and negotiations that involve NDAs, prior written permission clauses and republication strictly prohibited restrictions. The team at Commonwealth Transitions can help you through this process.
The Early Steps
The first concrete step consists of registering as a buyer to access the listings throughout the commonwealth of Virginia. This gives you information on specific listings, such as a dental practice for sale in northern Virginia. You will need to sign an NDA to ensure privacy protections. At this time you will also communicate your intentions and desires to the brokerage firm and receive resources on relevant financial information.
The Middle Stage
The process can move quickly or take some time. You might need to look at just one property, or you could have to look at several. If you want something in a specific community, you might also have to wait, for example, for the right dental practice for sale Richmond VA. During this period, you can move forward with the bank pre-qualification process as you tour any dental office for sale that sparks your interest.
The Final Stage
Once you have located a desirable practice for sale, and have communicated with the seller, you can present a Letter of Intent to the seller. Other paperwork includes the following documents:
- Contract term agreement
- Official bank approval
- Closing documents
- Financial forms
The transition period differs for all sales and typically involves many elements. This includes meeting with the general dentist, and the patients and working out a schedule for the practice.
A Look at the Seller During the Dental Practice for Sale
Whether you look to own and operate a general dentist office or another type of dental service, the transaction often involves many personal concerns. The seller of a practice, after investing many years in the business, likely has a keen interest in potential buyers. Contact with the seller often takes on added importance.
The Retiring Doctor or Owner
In many cases, the previous owner of the practice hopes to sell to a compatible buyer. For this reason, discussions between you and the seller take on added importance. This becomes an opportunity to share philosophies about such things as employee benefits, patient rights, office hours and other details. A shared philosophy between the main parties often leads to a smoother and quicker transition.
Commonwealth Transitions believes in the power of positive relationships. This remains an important component for dental practice brokers Virginia. Finding the perfect dental practice for your future needs can depend in part upon matching up with a seller who shares your vision.
The Features of the Facility
Another important consideration involves the size and looks of the dental property. You want a building that has the right size to meet your needs. If you plan to have an office that has four treatment rooms, which typically run 300 to 400 square feet, you will need a property that has about 2,000 square feet. A nice reception room and waiting area, as well as a restroom, office space for the dentist and filing space fall into the mandatory category.
When looking for the best practice for your needs, location and the condition of the office remain two top priorities. A shared vision with the departing dentist also often plays an important role in your success.
A Closer Look at Some Financial Issues
While the decision to run and operate your own practice has important personal considerations, such as where you might live, the financial elements also take center stage. The cost of purchasing an existing practice in Virginia can start at around $300,000 and quickly move up from there. The benefits of purchasing an office cover a lot of ground:
- You get to share in the profits of the office
- The owner typically makes more than the associates
- Dental services never go out of style
- Real estate investments tend to increase in price
- Profit Margins
Most dental offices have an overhead rate of about 60 percent and a profit margin rate of 40 percent. Of course, different offices see different results, but the average for many offices falls into this range. An office that falls below this threshold might find room for improvement through better management and other strategies.
While it remains difficult to assess precisely what a dental office will earn in a given year, many projections put the figure at around $700,000 to $1 million. A larger office could make significantly more. Of course, owning the operation entails incurring extra expenses in a multitude of areas:
- The cost of replacing and updating equipment
- The requirements of liability insurance
- The payment of staff and employment benefits
- The expenses of building repairs
- The cost of utilities
The Final Analysis
In the end, the decision to own and operate a dental practice remains a personal decision. It involves a lot of different factors, some of them quite complex. While it is often difficult to separate the dream from reality, both likely play a role in any decision. Once you decide to go ahead with your plans, it is important to find your ideal dental office for sale in Virginia that meets your needs.
Along the way, you will likely need the assistance of a company experienced in the Virginia real estate market and in the operations of dental practices. Commonwealth Transitions has completed over 100 transactions in the state and has placed together many compatible buyers and sellers.
The need for quality dental services will never end. A professional office benefits the members of the community in many ways and leads to better health outcomes for all. Your dental office in Virginia could become a valuable asset to your career and to the community.