Another important aspect of a practice is the amount of true active patients it has. A practice with 500 active patients that generates $700,000 in revenues is arguably worth less than a practice with 2,000 active patients that generates $650,000 in revenues. A great way to increase your patient base is to consider a practice merger with another dentist in your area. Mergers are commonly a win/win for both parties as it allows for many positive points. A few examples of benefits would be:
- Decreased local competition
- Possible equipment upgrades
- Shared expenses
- Reduced supply costs
- Reduced marketing expenses
- Potential upgrade in location and facility
- On call coverage
- A well thought out exit/retirement strategy
Other Important Areas to Consider:
- Developing a strong buy/sell document that outlines the exact steps and process to both long and short term plans.
- Tax ramifications for merging.
- What is best, LLC, C-Corp, S-Corp?
- Practice/office philosophy (rarely do we meet two dentists that agree in every aspect of treating patients. Add to that the daunting task of managing staff, benefits, which supply company is the best...)
Our experienced team at Edge will provide guidance and assistance throughout this difficult process, leaving everyone happy, or satisfied knowing all considerations were given equal measure. Not managing this process correctly can lead to tension and frustration within the relationship for many years to come. Edge is properly qualified to handle this heavy lifting.