MORR Perspectives

Controlling the purchase and allocation of resources is important for any dental practice, but absolutely critical for those in the industry’s middle market. In broad terms, people and capital are the most valuable resources for every practice; large multi-location practices often have plenty of both, and smaller dental practices will typically stick to a solo model, which puts less pressure on balancing resources. Middle market practices are in a unique situation between the two and poised for growth, but managing available resources can often be a barrier.

Whether you are fresh out of school or a seasoned veteran, as a first time buyer there is a world of opportunity ahead of you. The first big question is “Should I buy an existing practice or start fresh with a new one?” While each has their upsides and downsides, choose what makes the most sense for your level of experience and tolerance for difficulty.

The U.S. workforce is undergoing a massive change in demographics as an entire generation seeks retirement—and the dental industry is no exception. A study by the Department of Health and Human Services projects that the inflow of dentists will not be able to match the future demand of the industry, likely due to the increased rate of retirement of the “baby boomer” generation.

Jumpstarting growth for your dental practice is easier said than done. Organic growth might help keep costs down, but additional services and longer hours may not seem appealing. Alternatively, investing in a second location can afford you the freedom to attract new patients, especially if you are looking at buying an existing dental practice. However, there’s never a guarantee that patients will willingly transition to a new dentist, which poses a significant risk to the buyer. The big question remains: How can you acquire new patients, while minimizing risk and increasing value?

Navigating a dental practice transition is no easy task. Before the final purchase, buyers must negotiate value, identify and mitigate risks, and take their time to ensure the future success of their new practice – often with unexpected factors along the way. If you’re in the market for a new dental practice, be sure to sidestep some of the most common pitfalls in the industry.

Are you ready for the next step in "making it easy?" Pre-qualify for financing with Lendeavor today so you can acquire your practice tomorrow.

What you do is equally important to where you do it. MORR recommends giving careful consideration to your location, lease negotiations, and other major details specific to your place of practice with the aid of professionals. Dave Miller of CARR Healthcare Realty is just that sort of professional. 

What’s it like at MORR? It’s a fascinating question for any business. Instead of having us fill you in, here’s a short passage written by Renee Stephens, who had the opportunity to observe MORR’s Maria Melone during her externship as a pre-dental student. In her blog, Renee reflects on her first-hand experience watching Maria in action. 

 By Maria G. Melone

In a dental group practice, growth is a critical piece of determining enterprise value and is achieved in two different ways: Organic - includes such thing as expanding hours, increasing services, etc, and Developmental - includes opening new locations ("de novos") or acquiring existing practices.

Don’t miss out on this great opportunity with an unparalleled panel of experts in the area of dental group development.

SUMMIT 2014 Overview v3