• Austin (512) 900-7989
  • Houston (281) 362-1707
  • San Antonio (210) 737-0100
  • South Texas (361) 221-1990
How to Buy a Dental Practice:  The Due Diligence Process

How to Buy a Dental Practice: The Due Diligence Process

The process of evaluating a dental practice acquisition opportunity is often referred to as “due diligence”. Due diligence is an essential part of purchasing a practice, as it allows the buying dentist to fully examine the seller’s practice and confirm the material facts provided by the seller or practice broker.  When learning how to buy a dental practice, buyers often ask us questions regarding how to go about completing their due diligence, so we offer this two part article as a brief guide to this process. First, let’s examine the meaning of due diligence.  According to investopedia.com, due diligence is defined as: An investigation or audit of a potential investment. Due diligence...
Dental Practice Financing – Apply With Confidence

Dental Practice Financing – Apply With Confidence

Purchasing a dental practice is one of the most important decisions you will make in your professional career and often unlocks the door to a considerable increase in compensation and personal freedom. Since most dentists rely on third party financing to purchase or make capital investments in their practices, it is imperative that you understand the perspective of dental lenders and how to position yourself for success when applying for practice financing. Dental practices continue to thrive despite the recent economic downturn.  Specialized dental lenders have the knowledge and experience to recognize that the dental industry is fairly insulated from adverse changes in the economy,...
The Importance of Building a Strong Team of Advisors

The Importance of Building a Strong Team of Advisors

Buying a dental practice is typically a one-time event and the largest purchase a dentist will make in his or her lifetime. While McLerran & Associates usually represents the selling dentist in our transitions, our goal is to put together a win-win transaction for all parties involved. In addition to guiding the buyer through the process of buying a dental practice, we focus on helping the buying dentist build a strong team of advisors to obtain professional guidance on each aspect of the purchase (due diligence, contract review, transition, etc.). Here is a list of advisors that we recommend a buying dentist have on their team: Dental Attorney – It is imperative to utilize an attorney...
Patient Retention Following a Dental Practice Sale

Patient Retention Following a Dental Practice Sale

One of the concerns most often expressed by our potential buyers is “I am afraid the patients will leave the practice after the seller is gone.”  While there may be a small amount of patient attrition following a dental practice sale, the vast majority of patients will remain with the practice so long as the transition is handled properly (the average attrition rate is less than 10%). In order to understand why the attrition rate is so low, let’s examine a practice transition from the patient’s perspective: The patient receives a letter from their dentist announcing the sale of the practice, introducing/endorsing the new practice owner, and thanking/asking patients for their continued...
Lease Considerations When Buying a Dental Practice

Lease Considerations When Buying a Dental Practice

Dentists who are buying a dental practice will have 1,001 questions that need to be answered before the acquisition is complete. Many of these questions will be related to the lease and it’s important for buyers to have realistic expectations regarding this part of the process. Relocating a practice to a new space shortly following a transition will involve a substantial capital investment and can cause considerable irreparable damage to the goodwill of the practice. For these reasons, securing a long-term lease is a crucial element of any practice transition. Assuming the real estate is not part of the sale, the buying dentist will be dealing with either the landlord or the landlord’s...
The Art of Negotiation

The Art of Negotiation

As practice brokers and transition consultants, we are regularly involved in the negotiation of letters of intent, asset purchase contracts, restrictive covenants, partnership buy-in agreements, associate employment agreements, lease agreements, space sharing agreements, listing agreements, commission agreements, real estate purchase contracts – a fairly long list!  Some negotiations go very smoothly, both parties are satisfied, and the particular deal is completed in a timely manner.  Other negotiations can be bumpy, with emotions running high, and seemingly no end in sight to the deal being completed. In advising dentists on how to buy a dental practice, and on how to sell a dental...

Austin

3755 S. Capital of Texas Hwy
Suite 150
Austin, TX 78704
Phone: (512) 900-7989

icon-location Map

San Antonio

4243 E. Piedras Drive
Suite 275
San Antonio, TX 78228
Phone: (210) 737-0100

icon-location Map

Houston

2219 Sawdust Rd
Suite 1103
Spring, TX 77380
Phone: (281) 362-1707

icon-locationMap

South Texas

2525 S 11th Street
Unit 77
Port Aransas, TX 78373
Phone: (361) 221-1990

icon-locationMap

Contact us by email at: info@dentaltransitions.com

Follow us on social media at: