What About Accounts Receivable in the Sale of a Practice?
When buying or selling a dental practice, there are many details to finalize. One of the trickier items is how to handle the amounts still owed by patients for work already completed by the Seller. These balances, known as Accounts Receivable (A/R), are not included in the appraised value of the dental practice but can […]
What is a “Rule of Thumb” for Dental Practice Valuations?
The phrase “Rule of Thumb” has been around for centuries. It refers to a quick, rough estimate—not an exact measurement—and that’s exactly how it’s used when people talk about dental practice values. The Common Rule of Thumb In dentistry, the most common rule of thumb is that a practice is worth 65% to 70% of […]
If a Dental Practice Buyer and Seller Know Each Other – Is a Broker Necessary?
The short answer is yes—and here’s why. Selling a dental practice is one of the most significant transitions in a dentist’s career. Most Sellers have never sold a practice before, and most Buyers have never purchased one. The Seller often attaches emotional value to their life’s work, while the Buyer focuses only on the financial […]
10 Questions to Ask a Dental Practice Broker
Whether you’re buying or selling a dental practice in the St. Louis region, the smart choice is to consult with a Dental Practice Broker. But what should you ask when you meet with one? Here are ten questions that will help you determine if a broker is the right fit for your needs. 1. Do […]
Buying a Dental Practice – What is Due Diligence?
When you’re considering the purchase of a dental practice, one of the most important steps you’ll encounter is due diligence—the process of reviewing, verifying, and understanding the details of the practice before you officially buy it. The First Step: Initial Information Packet After signing a Non-Disclosure Agreement (NDA), you’ll usually be provided with an initial […]
Buying a Dental Practice? What You Need to Know About Leases
If you’re buying a dental practice in the St. Louis area—or anywhere else—you’ll need a lease from the building owner (your landlord). And here’s the truth: almost everything in a standard lease benefits the landlord. Some landlords are easy to work with. Many are not. Over the years, we’ve found that the “difficult” ones tend […]
Buying a Dental Practice – What are Contingencies?
If you’re considering buying a dental practice in the St. Louis region, you’ve probably heard the term “contingencies.” But what does that really mean for you as a buyer? When purchasing a dental practice, the sale contract—often called an Asset Purchase Agreement (APA)—will spell out conditions that must be met before the deal can officially […]
What is a Non-Disclosure Agreement?
When you find a dental practice you’re interested in purchasing, you’ll almost always be asked to sign a Non-Disclosure Agreement (NDA). We assist clients on both the buying and selling side of dental practices in the St. Louis region, and an NDA is one of the first steps in the process. Why an NDA is […]
Why Goodwill is the Most Valuable Asset of a Dental Practice & How to Maximize it When You Sell
In our previous post, we explained how Goodwill value is calculated in a dental practice: it’s the sale price minus the value of the tangible assets. But numbers only tell part of the story. So, what is Goodwill really? Goodwill is the heart of a dental practice. It’s the reputation of the dentist and staff, […]