Whether an individual has just completed dental school or is striving to expand his dental practice in a new location, he might be looking for a dental practice for sale NJ. Buying an ongoing dental practice is an ideal choice, as a person will inherit the reputation of the preceding dentist. However, purchasing the perfect dental practice depends on the buyers through research. There are several aspects, from business financials to office systems, that an individual should consider before making a purchase offer. This article provides a checklist for buying a dental practice.
1. Determine the Desired Practice Area
The first important step to purchasing a dental practice is determining the preferred area to work and reside. When looking for the desired practice area, check if it’s home to schools, parking lots, gas stations, banks, entertainment hubs, restaurants, shopping complexes, and other vital amenities that could impact an average person’s life.
Moreover, discover how many competing dentists are working in the area to uncover the market saturation level.
2. Look for the Dental Practice
Now that a person has determined the target area, it’s time to look for a dental practice for sale NJ. To make the process easier, the buyer can hire a professional broker. In addition, one can contact any dental professionals working in the shortlisted area and ask them if anyone is interested in selling their practice.
3. Research the Financial State of Practice
A buyer can hire a professional to help him evaluate and understand the current dentist’s cash flow and financial information. For instance, he needs to check crucial financial information, like recent profit and loss statements, balancer sheets, income tax returns, employee expenses, dental fee schedules, and more. Also, discover why the current dentist is selling a dental practice.
4. Appraise the Dental Facility
In addition to knowing about the practice’s financial health, find out about the facility. Make sure to do the site visit and evaluate the equipment. Hire an independent professional vendor for equipment valuation. Moreover, check whether the space is appropriate and if there is room for further expansion. Ask about the lease terms of a dental practice.
5. Make the Purchase Offer
Once the individual has done all his due diligence and shortlisted the practice, make the purchase offer. Discuss the facility’s price and work out other important details of the agreement. After making a purchase offer, secure the financing.
6. Sign the Practice Sale Agreement
The actual practice sale agreement can be complicated for an average individual. Therefore, a buyer should hire an attorney to look at the contract. If everything is fine, sign the practice sale agreement and transfer the pre-determined purchase consideration amount.
Following these steps can make it easier for the buyers to find the best dental practice for sale NJ and complete the purchase process. After signing the sales agreement, the buyer must send patient notification letters. Moreover, he must apply for a tax ID number, open a business checking account, and transfer the insurance policies requiring contractual agreements.