A significant part of my work week is spent assisting and advising dentists who are buying or selling a dental practice. I would like to share my current observations.<\/p>\n
\u2022 By and large, it remains a seller’s market. There are definitely more dentists looking to purchase a practice than dentists wishing to sell a practice.
\n\u2022 Because of that supply\/demand ratio, I see practice valuations continuing to increase.
\n\u2022 Financing for practice transitions has never been easier. 100% financing of documented practice valuation is the norm. Banks have realized that very few dental practices ever fail, and so they are lining up to compete aggressively for your business. And we all know that when banks compete\u2013you win.
\n\u2022 The Federal Reserve has been your friend. Monetary policy that has kept interest rates at historically low levels has stimulated acquisition activity by making borrowing costs so cheap.
\n\u2022 Prior to this low interest rate environment, it was often difficult for a buyer to be able to afford and take on the debt of both the dental practice AND an office condo or stand-alone office building. Sellers would usually be required to offer a lease to the buyer, and become the landlord. Now, it is almost cheaper to buy than to rent, so buyers actually want to own the physical location and build their own equity.
\n\u2022 There is still a premium to a seller if he or she has stayed current with new technology. Upgraded practice management software and advanced computer networking also guarantee a practice valuation at the higher range of the spectrum.
\n\u2022 There are numerous interesting and innovative ways to enable a win\/win transition.<\/p>\n
My message to buyers is that you should be prepared to pay a little more than you thought in order to buy a quality practice. That increased cost is easily offset by the availability of ten to fifteen year amortization schedules with low fixed rate financing that still allows a great return on your investment. My message to sellers is to get your house in order if you want to receive top dollar for your practice.<\/p>\n
As always, I welcome your comments and thoughts.<\/p>\n","protected":false},"excerpt":{"rendered":"
A significant part of my work week is spent assisting and advising dentists who are buying or selling a dental practice. I would like to share my current observations. \u2022 By and large, it remains a seller’s market. There are definitely more dentists looking to purchase a practice than dentists wishing to sell a practice. […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-1707","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"yoast_head":"\n