Transition Services
For Dentists
We can help you navigate business transitions, from starting up a new practice to selling an existing one and everything in between. We act as the broker between parties, finding buyers and sellers, plus initiating funding with the lenders.
Dental Practice Acquisitions
Purchasing a dental practice is a big decision to make. If you’re not careful, unnecessary mistakes can hurt your future success. To avoid these mistakes, we will help you learn from the errors of past dental practice purchasers and maximize your chances of making a lucrative purchase. Whether you are looking to acquire one dental practice or multiple locations, we have the expertise to ensure you make the right decisions at the right time!
REASONS TO BUY A DENTAL PRACTICE:
- You are your own boss: Owning your own practice allows the freedom to do more of what you love, less of what you don’t.
- Existing patients: Buying a dental practice means you’re likely to take over some of the current owner’s patients. This means you’ll have patients from day one, which helps with initial cash flow.
- Employee acquisition: Finding the right employees with the skill set you need can often be a lengthy process. Buying part-ownership or complete ownership of an existing practice means you already have a team of people that know what they are doing.
- Wealth Expansion: If you are purchasing additional practices, you will further increase your assets and overall wealth accumulation. We’ll guide you through this expansion with our expert financial planning.
- Wealth Expansion: If you are purchasing additional practices, you will further increase your assets and overall wealth accumulation. We’ll guide you through this expansion with our expert financial planning.
- Additional Tax deductions: Enough said!
Selling A Dental Practice
So, you’ve been thinking about selling your dental practice, but you’re not sure where to begin. We understand that it’s not an easy decision. From getting a comprehensive practice valuation to understanding tax ramifications, there are various factors to know before you can maximize your chances of financial gain.
Reasons To Sell Your Dental Practice:
- Minimize management: Being a dental practice owner can undoubtedly be a stressful task. You don’t have to wait for retirement to scale back from the day-to-day management of your practice. We have seen many dentists who sell their practice and stay on to work a 9-5.
- Share the responsibilities: Is your dental practice flourishing, and there are just too many tasks in a day? Don’t stress! If you’re overwhelmed with all the parts that make your business run, it might be time to seek a little help. Merging with a partner that supports your vision could be a great way to alleviate some of the stress. You can also seek a “buy-in” from an investor who can take on some administrative responsibilities.
- Retirement: You’ve had a long successful career & now you are looking enjoy the next stage of life. When retiring, seek out a buyer that shares your vision for the practice’s future. This ensures a smooth transition for both your employees and your patients.
For more than 30 years, we have helped dentists successfully Buy and Sell their practices, and we are here to do the same for you. If you’re looking for a Dental CPA in Dallas-Fort Worth to assist you with buying or selling a dental practice, then Edwards & Associates, PC is the right firm for you. Contact us today!
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Have Questions?
Contact us at info@eandassociates.com or call us at (972) 267 9191 to schedule a consultation!
What Is the Dental Practice Failure Rate?
To become a general dentist or specialist requires many years of education and a significant amount of financial investment. That’s why it’s understandable that the question of failure rate is asked so often. Dentists should feel confident in their future success as they are in a promising profession. The failure rate of dental practices is less than 3%. That being said, the risk of mismanaging funds or not adequately planning for financial success remains. That is why most dentists make use of a dental CPA to ensure the highest probability of success. Schedule an appointment so we can help you keep more of what you earn!
Questions To Ask When Buying a Dental Office
Buying a dental practice is certainly one of the biggest financial decisions a dentist can make. Understanding whether you are getting a good deal, gathering accurate information on the practice, negotiating interest rates on a loan are just some of the many decisions you will need to make. If you are looking to acquire a new practice, please see here the list of services we provide our clients to make this process as smooth and profitable as possible.
Dental Practice Acquisition Checklist:
- Is it the right time to buy a dental practice?
- How many patients are currently in the practice?
- Where is the practice located?
- Will the location of the practice be beneficial to you?
- What is the value of the existing dental equipment?
- Are the existing staff members adequately trained?
- How was the practice price determined?
These are only some of the many questions you need to answer before thinking of buying a dental practice. If you need more information, feel free to contact our offices today!
What Are the Tax Ramifications of Selling My Dental Office?
Most dental practice sales are structured as asset sales, meaning the acquirer is buying specific assets of the company rather than its stock. Thus, the practice is not taxed as one entity. A dental practice contains several different kinds of assets—equipment, supplies, real property, goodwill—and each asset requires separate accounting and tax treatment. The sale of a practice will include what is called an asset allocation statement. This statement determines the portion of the total sales price that is allocated to each asset and is key when determining the total tax effect of a practice sale.
Based on current tax laws, the maximum capital gains rate is 20% and the maximum ordinary tax rate is 32%; making assets taxed at a capital gains rate usually more favorable to a seller. Due to the complexity of a dental practice sale, it is important to consult a Dental CPA in order to ensure you are maximizing the value of your practice, strategically reducing taxes, and properly calculating the tax bill associated with the sale!
What Is the Dental Practice Failure Rate?
To become a general dentist or specialist requires many years of education and a significant amount of financial investment. That’s why it’s understandable that the question of failure rate is asked so often. Dentists should feel confident in their future success as they are in a promising profession. The failure rate of dental practices is less than 3%. That being said, the risk of mismanaging funds or not adequately planning for financial success remains. That is why most dentists make use of a dental CPA to ensure the highest probability of success. Schedule an appointment so we can help you keep more of what you earn!