| Your first priority as a dentist is to provide the most | | | | advantage to working with these types of |
| professional and effective treatment possible to your | | | | companies is the knowledge and expertise they bring |
| patients.. To do that, you must keep up with the | | | | to the table in the way of dental practice financing. |
| latest technical advancements. Of nearly equal | | | | Seller financing |
| importance is a working knowledge of the business | | | | When a practice is for sale, the owner will often |
| aspects of the practice. Whether you are considering | | | | agree to provide financing. This can be a great |
| starting a new practice, buying a practice, or | | | | arrangement for several reasons: |
| becoming a partner in one that already exists, you | | | | 1. Flexibility: The seller will likely be more flexible as far |
| need to have a working knowledge of the financial | | | | as payment arrangements than would a bank. For |
| options available to you. You must also align yourself | | | | example, he might agree to an interest-only payment |
| with professionals that can help steer you the right | | | | structure the first few years while you get on your |
| way. | | | | feet. |
| DUE DILIGENCE REVIEW | | | | 2. Low or no down payment: As a motivation to sell |
| Before you buy a practice, you should thoroughly | | | | the practice quickly, the seller might not require a |
| review all the documents provided by the seller. Don't | | | | large down payment. This allows you to use your |
| be shy about asking questions concerning all areas of | | | | capital reserve for other needs. |
| the practice: marketing programs, personnel, supply | | | | 3. Seller consultation and assistance: Needless to say, |
| vendors, accounting functions, and a review of | | | | the seller will have a vested interest in the success |
| patient records. With the help of a CPA, you should | | | | of the practice after the sale. Because of that, he will |
| analyze the practice's tax returns and financial | | | | probably lend as much support as possible to the |
| statements. Perform trend analysis not only of | | | | new owner(s) in the way of consultation and |
| revenues, but patient count as well. Carefully review | | | | operations. |
| the equipment list. Is the equipment up to date or will | | | | Bank financing |
| you have to earmark funds for newer equipment? Is | | | | The banking industry is highly competitive, not only in |
| the equipment you're acquiring connected to a lease | | | | terms of national institutions like Bank of America, |
| obligation? | | | | but local banks as well. Banks usually view dentists as |
| FINANCING OPTIONS | | | | good credits and will go out of there way to provide |
| How you finance your practice, whether it is a | | | | the funding they need. If you go this route, a down |
| start-up or an existing one, is paramount to your long | | | | payment equal to 20% of the purchase price will be |
| term success and cash flow. You should carefully | | | | required. Also, if you're buying into an existing |
| examine all the options available to you. | | | | practice, a bank will probably require that the prior |
| Financing from a specialized funding source: | | | | entity be dissolved and a new one be created. The |
| There are firms in the marketplace that are devoted | | | | loan would then be in the name of the new entity. |
| to providing financing for dental practice acquisitions | | | | Buying a practice can be one of the most rewarding |
| and start-ups. These firms, such as Ozarks Capital | | | | experiences of your career. You must make the |
| Funding, are able to offer up to 100% financing for | | | | effort to perform a thorough review of the asset |
| the purchase of a practice. Financial institutions like | | | | you're buying. Choosing the right financing option can |
| these will also provide working capital and funds for | | | | be of equal importance. |
| additional equipment or remodeling costs. Another | | | | |