Whether selling your practice or adding a new dentist to your team, a dental-focused accountant can be an invaluable partner in the process.
Getting guidance from an experienced professional will help protect you from the many pitfalls and untold financial hardships that can come with a poorly planned transition. Here’s how.
Get a Broker
If you want a smooth practice transition, hire a dental-focused accountant trained in all aspects of dental practice transitions. They will guide you through every step, from valuing your dental practice, purchasing or selling it, and transferring ownership from one owner to another.
In addition to advising on the legal aspects of a dental practice transition, they can help you with personnel issues like hiring and firing. They will work to create a culture that is conducive to long-term success and can assist with employee training, background checks, retention strategies, and more.
Get a Plan
Whether you’re planning for a sale, a partnership, or a one-and-a-half practice situation, getting guidance from dental-focused accountants can make the process easier. They can help you determine if your practice is ready to sell, value it, prepare your paperwork and set up your financial plan.
A reasonable practice valuation can be critical to the success of your transition and will allow you to plan for retirement and other ventures realistically. It can also guide your investment strategies during the sales process.
Get a Valuation
A valuation is a crucial part of the dental practice transition process. It can determine affordability for the purchasing doctor and future financial planning for the retiring dentist.
The valuation report also plays an essential role in shaping negotiations. For example, the valuation may include reviewing the practice’s history and current production, profitability, and patient lists.
It can also include an analysis of the buyer’s goals and the practice’s potential to meet them.
A dental CPA or another trusted advisor can help you understand the value of your practice and what factors might impact it. Then, you can plan accordingly and make necessary improvements to increase your practice’s value before selling.
Get a Lender
When buying or selling a dental practice, it’s critical to have a team that understands the unique challenges of this type of transaction. A good CPA/accounting firm with dental expertise can guide you through every step of the process.
When it comes to financing, you’ll want a lender specializing in dental practice loans. It ensures that you’re getting a loan that fits the needs of your new business.
You’ll also need a bank that can work with you during the construction of your new practice and the buying and selling process to help make sure payments are made on time, and vendors get paid. Again, a better dental-specific lender can handle all of these issues in one place, making the entire process more efficient and easier for you.
Get a CPA
Unlike general accountants and bookkeepers, dental-focused CPAs know that it is necessary to help dentists make significant business decisions. It includes advising on how to maximize profits, grow your practice, and manage your finances.
A CPA also helps with strategic tax planning to minimize taxes and use depreciation deductions effectively. It can include decisions related to overhead expenses, payroll, equipment purchases, and more.
Many CPAs support dental practices by providing financial recordkeeping, federal and state tax filings, and payroll services. Larger practices often employ a mix of in-house and external staff.