The dental industry is a highly complicated one that requires skills and hard work to navigate successfully. One way to grow your dentistry business in a relatively short time is to acquire an existing practice. This practice stems from the challenges and time involved in building one from scratch. Also, big companies control smaller ones in a complete or partial takeover deal in a series of expansion moves to solidify their market position.
Buying a dental practice puts you in a position where you’re more than a dentist. It makes you take on financial and managerial roles essential to the business’s success while continuing your practice as a full-time dentist. In doing this, you need an acquisition professional’s guidance like a dental CPA in Kansas City to ensure you don’t buy a failed or failing practice.
The following are useful tips that will come in handy when purchasing an existing dental practice.
1. Consider Retaining Acquired Staff
When you acquire an existing dental practice, the chances are that you’ll be taking control of its staff too. Now, you might be the kind of person that cherishes working with known faces to avoid any chance of friction. If this is the case, you might want to hold off on getting rid of acquired ones for several reasons. The staff that comes with a bought practice plays an essential role in the transition period. They know the company’s workings more than you do; as such, you’d need their help in getting the hang of things.
Also, acquired staff members are quite familiar with the patients, and the latter is also used to them. Suddenly introducing new faces might offset the balance and bring about some inconveniences as another round of introduction and familiarity would have to occur.
Bringing in new faces might also significantly impact finances; the ones that came with the acquired practice were already under a stable operating system. In incorporating new ones, you might have to create another framework to accommodate them, a situation that isn’t usually cheap, considering it’s likely to involve a dental CPA in Kansas City.
2. Involve a Dental CPA
When it comes to dental practice acquisition, you need the attention of a dental CPA in Kansas City that has worked with several clients on a similar project. Such a professional won’t only provide valuable industry-specific insight; they’ll advise on the most appropriate strategies for the selling practice’s financial aspect. Such aspects include tax, expense averages, cost analysis on equipment and staff, etc. In them, you’ll have a worthy adviser for the acquisition process.
3. Do Your Due Diligence
The decision to acquire an existing dental practice isn’t one you wake up one day and implement. It requires careful planning, investigation, and appraisal. Ensure you do your due diligence and gather as much information as possible about the entity you want to procure. Doing this will help you come out with the best deal. You might consider hiring a consultant who will research on your behalf.
Procuring an existing dental practice is a step in the right direction. However, ensure you take your time and research properly before signing the deal.