Prior to Purchasing a Dental Practice

It is a very important that you give yourself due consideration in deciding where to buy, how to go about it, and what kind of practice to purchase.

Research Research Research

Dentists must not rush into a purchase, and need to manage their expectations, understanding that the process will take some time. There is no need to hurry through important steps and be impatient. Buying the right dental practice for you matters more than closing a deal quickly when the first opportunity presents itself.

Find the Best Location

Think about where you might like to live. You’ll end up being a big part of this community, so you’ll want to make sure it’s a good fit. Establishing a connection with the locals will help your business succeed. And ensuring a shorter commute could also pay off. No one wants to face a long round-trip commute year after year.

Establish yourself amongst people you can relate to and people you can enjoy. Your practice and your interpersonal life will reap the benefit. Intercity or rural–what’s best for your family? Let the location of your competition inform your decision. Other issues are whether or not your spouse needs to find work, and the quality of the school system in the area.

Determine the Ideal Practice for You

Take special care in determining the size and type of dental practice that matches your preferences and needs. Do you want to practice general dentistry or do you prefer an expensive practice that focuses on cosmetic dentistry? Do you prefer a long client list with a five-day-a-week-schedule? Or do you want a smaller practice, with a slower pace, that will allow you to work fewer hours? These decisions affect your finances and stress levels–what can you reasonably make work?

Seek an Appraisal

Have the business appraised with the help of a certified public accountant or valuation specialist. And prefer a professional that has experience with dental practices. This way you can establish a frame of reference for what local dentists practices, similar to your own are worth.

Assemble a Team of Professionals

Trying to save money by being completely self-sufficient is a poor decision when you plan on purchasing a dental practice. You’ll have to rely on the expertise of others as your patrons will have to rely on you. In the long-run, investing in advisors will save you a lot of trouble. Here are a few people you’ll need:

  • A tax accountant experienced in aiding dentistry practices and other small businesses on reducing tax burdens and remaining tax compliant. You want an accountant who can do more than just prepare your tax returns. Find a cpa to advise you on the best entity structure for your small business (LLC, PLLC, Sole Proprietorship, S-Corp, C-Crop).
  • A Bookkeeper who has familiarity in a small business accounting system such as Quickbooks. A certified Quickbooks Advisor means they are certified by by Intuit as knowledgeable with the Quickbooks platform.
  • An attorney at law to protect your interests and review documents.
  • A consultant also will most probably prove valuable in the long run, helping you achieve goals.
  • Establish a relationship with a bank early on. Getting prequalified, and ready to finance, will help you gain a handle on how much you can afford when putting in an offer.
  • An insurance representative will assess the value of your business and evaluate risk to see just how much coverage you will be needing.
  • It never hurts to seek the help of a mentor that has experienced similar circumstance to those you’ll face.
  • A marketing expert-preferably someone with knowledge of internet marketing.

Purchasing a dental practice is a huge step in the career of a DDS. Be prepared for success.

ax CPA John Huddleston has a law degree and masters in tax law from the University of Washington School of Law. He has been a guest tax expert on the radio. He advises small businesses in the Seattle Bellevue Tacoma & Everett area on various tax and accounting issues. His firm, Huddleston Tax CPAs, also provides tax preparation service, quickbooks consulting, business valuation, general accounting and bookkeeping service. Profile information on CPA John Huddleston and the CPAs employed by Huddleston Tax CPAs is available at CPA tax accountant profile. Seattle CPA John Huddleston is a frequent publisher of tax saving ideas.

Seattle CPAsAbout Seattle CPAs
Redmond CPA+John Huddleston has written extensively on tax related subjects of interest to small business owners. Since 2002, he has been the owner of Huddleston Tax CPAs. He is a graduate of Washington State University and the University of Washington School of Law.

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  • Huddleston Tax CPAs / Huddleston Tax CPAs – Redmond Accountants
    Certified Public Accountants Focused on Small Business
    40 Lake Bellevue Suite 100 / Bellevue, WA 98005
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    Huddleston Tax CPAs & accountants provide tax preparation, tax planning, business coaching,
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    We serve: Tukwila, SeaTac, Renton. We have a few meeting locations. Call to meet John C. Huddleston, J.D., LL.M., CPA, Lance Hulbert, CPA, Grace Lee-Choi, CPA, Jennifer Zhou, CPA, or Jessica Chisholm, CPA. Member WSCPA.