When a person is considering entering the market to buy a dental practice there is an urge to get out there and start looking at practices and talking to sellers. However there are a number of things you should do beforehand that will save you time in your search and negotiation and maximise your chances of success.
When a potential buyer is looking at a practice for sale and deciding the price they are willing to pay, one of the key things that they will look at is the profitability of the practice, and the outlook for that profitability into the future.
It is possible… but highly unlikely.
There are many methods people use to value dental practices. By far the most overused and problematic of the methods used is the “rule of thumb” methodology.
The reason people do these things is that their home is in competition with other homes in the area for interested buyers and there is an emotional component to the purchasing decision. These home improvements that may cost a few thousand dollars will hopefully give a better feel to the place in the eyes of a potential purchaser and may just tip the balance between a party being interested or not, or make a significant difference in the price that someone is willing to pay.