Dentaltown November 2017 - 101

THESE SIT UAT

IONS COULD H

AVE BEEN AVO

IDED.

Scenario B
In another real example, a selling doctor
who was tired of leading a practice decided to
sell it but continue to practice dentistry. The
younger dentist who purchased the practice
saw the selling doctor as a gift to help him
meet the new patients and mentor him.
After several months, however, the new
owner discovered the extra capital he borrowed
was gone and expenses were very tight.
Production was fabulous at $1 million, but not
his production; the former owner was gathering
35 percent of undefined production, usually
doing all the larger cases with no set limit.
We've seen many situations like the above
in which the younger dentist realized he
couldn't afford the older, and had to discuss
the financial realities. But the selling doctor
said he needed to continue practicing so he
could earn $40,000 a month. "These are
my patients and they need me," he said. "I
know I have a covenant not to compete, but
I'm not moving."
Lesson 3: This was a single-doctor practice, but before the purchase no budget had
been determined to indicate how much the
new doctor should be spending on his team
(including the selling doctor, who had become the most expensive member of that
team). Before purchase, selling dentists
should be asked about financial expectations for income-not a percentage, but
an actual figure. At the same time, new
owners need to figure out how much they
can afford to pay an earning team member.
And do they really need the former owner
to continue to work in the practice?

Scenario C
The parent who's a dentist is so proud of
a son or daughter in dental school, and very
much wants the two to practice together. Yet,
what does it take for a single-doctor practice
to become a viable two-doctor practice?
Lesson 4: The parent has four years while
his or her child is in dental school to prepare
a plan of marketing, skill enhancement and
capital expenditures that will work when
the new dentist comes aboard. Relationships go sour when money is stretched too
tightly-but with the right planning, most
of these situations could have been avoided.

Scenario D
A dentist's skill set was not matched
with the purchase. If a general dentist does
IV sedation and implants, you can't afford
to pay the selling doctor to do that major
treatment. The insurance profile also needs
to be examined.
Lesson 5: Before purchase, check the skill
set to see if it is a match. Also, check referral sources. If there is one major referral
source, will that continue for you?
Buyers need to check out everything
before they purchase a practice. As the buyer,
they're in the driver's seat. Do your due
diligence-and have a broker to represent
you vigilantly. ■

FREE FACTS, circle 11 on card

dentaltown.com \\ NOVEMBER 2017

101


http://www.dentaltown.com

Table of Contents for the Digital Edition of Dentaltown November 2017

Dentaltown November 2017 - Intro
Dentaltown November 2017 - Cover1
Dentaltown November 2017 - Cover2
Dentaltown November 2017 - 1
Dentaltown November 2017 - 2
Dentaltown November 2017 - 3
Dentaltown November 2017 - 4
Dentaltown November 2017 - 5
Dentaltown November 2017 - 6
Dentaltown November 2017 - 7
Dentaltown November 2017 - 8
Dentaltown November 2017 - 9
Dentaltown November 2017 - 10
Dentaltown November 2017 - 11
Dentaltown November 2017 - 12
Dentaltown November 2017 - 13
Dentaltown November 2017 - 14
Dentaltown November 2017 - 15
Dentaltown November 2017 - 16
Dentaltown November 2017 - 17
Dentaltown November 2017 - 18
Dentaltown November 2017 - 19
Dentaltown November 2017 - 20
Dentaltown November 2017 - 21
Dentaltown November 2017 - 22
Dentaltown November 2017 - 23
Dentaltown November 2017 - 24
Dentaltown November 2017 - 25
Dentaltown November 2017 - 26
Dentaltown November 2017 - 27
Dentaltown November 2017 - 28
Dentaltown November 2017 - 29
Dentaltown November 2017 - 30
Dentaltown November 2017 - 31
Dentaltown November 2017 - 32
Dentaltown November 2017 - 33
Dentaltown November 2017 - 34
Dentaltown November 2017 - 35
Dentaltown November 2017 - 36
Dentaltown November 2017 - 37
Dentaltown November 2017 - 38
Dentaltown November 2017 - 39
Dentaltown November 2017 - 40
Dentaltown November 2017 - 41
Dentaltown November 2017 - 42
Dentaltown November 2017 - 43
Dentaltown November 2017 - 44
Dentaltown November 2017 - 45
Dentaltown November 2017 - 46
Dentaltown November 2017 - 47
Dentaltown November 2017 - 48
Dentaltown November 2017 - 49
Dentaltown November 2017 - 50
Dentaltown November 2017 - 51
Dentaltown November 2017 - 52
Dentaltown November 2017 - 53
Dentaltown November 2017 - 54
Dentaltown November 2017 - 55
Dentaltown November 2017 - 56
Dentaltown November 2017 - 57
Dentaltown November 2017 - 58
Dentaltown November 2017 - 59
Dentaltown November 2017 - 60
Dentaltown November 2017 - 61
Dentaltown November 2017 - 62
Dentaltown November 2017 - 63
Dentaltown November 2017 - 64
Dentaltown November 2017 - 65
Dentaltown November 2017 - 66
Dentaltown November 2017 - 67
Dentaltown November 2017 - 68
Dentaltown November 2017 - 69
Dentaltown November 2017 - 70
Dentaltown November 2017 - 71
Dentaltown November 2017 - 72
Dentaltown November 2017 - 73
Dentaltown November 2017 - 74
Dentaltown November 2017 - 75
Dentaltown November 2017 - 76
Dentaltown November 2017 - 77
Dentaltown November 2017 - 78
Dentaltown November 2017 - 79
Dentaltown November 2017 - 80
Dentaltown November 2017 - 81
Dentaltown November 2017 - 82
Dentaltown November 2017 - 83
Dentaltown November 2017 - 84
Dentaltown November 2017 - 85
Dentaltown November 2017 - 86
Dentaltown November 2017 - 87
Dentaltown November 2017 - 88
Dentaltown November 2017 - 89
Dentaltown November 2017 - 90
Dentaltown November 2017 - 91
Dentaltown November 2017 - 92
Dentaltown November 2017 - 93
Dentaltown November 2017 - 94
Dentaltown November 2017 - 95
Dentaltown November 2017 - 96
Dentaltown November 2017 - 97
Dentaltown November 2017 - 98
Dentaltown November 2017 - 99
Dentaltown November 2017 - 100
Dentaltown November 2017 - 101
Dentaltown November 2017 - 102
Dentaltown November 2017 - 103
Dentaltown November 2017 - 104
Dentaltown November 2017 - 105
Dentaltown November 2017 - 106
Dentaltown November 2017 - 107
Dentaltown November 2017 - 108
Dentaltown November 2017 - 109
Dentaltown November 2017 - 110
Dentaltown November 2017 - 111
Dentaltown November 2017 - 112
Dentaltown November 2017 - 113
Dentaltown November 2017 - 114
Dentaltown November 2017 - 115
Dentaltown November 2017 - 116
Dentaltown November 2017 - 117
Dentaltown November 2017 - 118
Dentaltown November 2017 - 119
Dentaltown November 2017 - 120
Dentaltown November 2017 - Cover3
Dentaltown November 2017 - Cover4
http://www.nxtbook.com/farran/dentaltown/2020February
http://www.nxtbook.com/farran/dentaltown/2020January
http://www.nxtbook.com/farran/dentaltown/2019December
http://www.nxtbook.com/farran/dentaltown/2019November
http://www.nxtbook.com/farran/dentaltownuk/2019OctoberNovember
http://www.nxtbook.com/farran/dentaltown/2019October
http://www.nxtbook.com/farran/dentaltown/2019NewGrad
http://www.nxtbook.com/farran/dentaltown/2019September
http://www.nxtbook.com/farran/dentaltown/2019August
http://www.nxtbook.com/farran/dentaltown/2019July
http://www.nxtbook.com/farran/dentaltownuk/2019JuneJuly
http://www.nxtbook.com/farran/dentaltown/2019June
http://www.nxtbook.com/farran/dentaltown/2019May
http://www.nxtbook.com/farran/dentaltownuk/2019AprilMay
http://www.nxtbook.com/farran/dentaltown/2019April
http://www.nxtbook.com/farran/dentaltown/2019March
http://www.nxtbook.com/farran/dentaltown/2019February
http://www.nxtbook.com/farran/dentaltownuk/2019FebruaryMarch
http://www.nxtbook.com/farran/dentaltown/2019January
http://www.nxtbook.com/farran/dentaltownuk/2018Winter
http://www.nxtbook.com/farran/dentaltown/2018December
http://www.nxtbook.com/farran/dentaltown/2018November
http://www.nxtbook.com/farran/dentaltownuk/2018November
http://www.nxtbook.com/farran/dentaltown/2018October
http://www.nxtbook.com/farran/dentaltownuk/2018October
http://www.nxtbook.com/farran/dentaltown/2018NewGrad
http://www.nxtbook.com/farran/dentaltown/2018September
http://www.nxtbook.com/farran/dentaltownuk/2018September
http://www.nxtbook.com/farran/dentaltown/2018August
http://www.nxtbook.com/farran/dentaltownuk/2018July
http://www.nxtbook.com/farran/dentaltown/2018July
http://www.nxtbook.com/farran/dentaltownuk/2018June
http://www.nxtbook.com/farran/dentaltown/2018June
http://www.nxtbook.com/farran/dentaltownuk/2018May
http://www.nxtbook.com/farran/dentaltown/2018May
http://www.nxtbook.com/farran/dentaltownuk/2018April
http://www.nxtbook.com/farran/dentaltown/2018April
http://www.nxtbook.com/farran/dentaltown/2018March
http://www.nxtbook.com/farran/dentaltownuk/2018March
http://www.nxtbook.com/farran/dentaltown/2018February
http://www.nxtbook.com/farran/dentaltownuk/2018February
http://www.nxtbook.com/farran/dentaltown/2018January
http://www.nxtbook.com/farran/dentaltown/2017December
http://www.nxtbook.com/farran/dentaltownuk/2017Winter
http://www.nxtbook.com/farran/dentaltown/2017November
http://www.nxtbook.com/farran/dentaltown/2017October
http://www.nxtbook.com/farran/dentaltownuk/2017october
http://www.nxtbook.com/farran/dentaltown/NewGrad2017
http://www.nxtbook.com/farran/dentaltown/2017September
http://www.nxtbook.com/farran/dentaltownuk/2017September
http://www.nxtbook.com/farran/dentaltownuk/2017August
http://www.nxtbook.com/farran/dentaltown/2017August
http://www.nxtbook.com/farran/dentaltown/2017July
http://www.nxtbook.com/farran/dentaltownuk/2017July
http://www.nxtbook.com/farran/dentaltown/2017June
http://www.nxtbook.com/farran/dentaltownuk/2017may
http://www.nxtbook.com/farran/dentaltown/2017May
http://www.nxtbook.com/farran/dentaltownuk/2017April
http://www.nxtbook.com/farran/dentaltown/2017April
http://www.nxtbook.com/farran/dentaltown/2017March
http://www.nxtbook.com/farran/dentaltownuk/dentaltownuk/2017march
http://www.nxtbook.com/farran/dentaltown/February2017
http://www.nxtbook.com/farran/dentaltown/2017January
http://www.nxtbook.com/farran/dentaltown/2016December
http://www.nxtbook.com/farran/dentaltown/2016November
http://www.nxtbook.com/farran/dentaltown/2016October
http://www.nxtbook.com/farran/dentaltown/2016nge
http://www.nxtbook.com/farran/dentaltown/2016september
http://www.nxtbook.com/farran/dentaltown/2016august
http://www.nxtbook.com/farran/dentaltown/2016july
http://www.nxtbook.com/farran/dentaltown/2016june
http://www.nxtbook.com/farran/dentaltown/2016may
http://www.nxtbook.com/farran/dentaltown/2016april
http://www.nxtbook.com/farran/dentaltown/2016march
http://www.nxtbook.com/farran/dentaltown/2016february
http://www.nxtbook.com/farran/dentaltown/2016january
http://www.nxtbook.com/farran/dentaltown/2015december
http://www.nxtbook.com/farran/dentaltown/2015november
http://www.nxtbook.com/farran/dentaltown/2015october
http://www.nxtbook.com/farran/dentaltown/2015nge
http://www.nxtbook.com/farran/dentaltown/2015september
http://www.nxtbook.com/farran/dentaltown/2015august
http://www.nxtbook.com/farran/dentaltown/2015july
http://www.nxtbook.com/farran/dentaltown/2015june
http://www.nxtbook.com/farran/dentaltown/2015may
http://www.nxtbook.com/farran/dentaltown/2015april
http://www.nxtbook.com/farran/dentaltown/2015march
http://www.nxtbook.com/farran/dentaltown/2015february
http://www.nxtbook.com/farran/dentaltown/2015january
http://www.nxtbook.com/farran/dentaltown/2014december
http://www.nxtbook.com/farran/dentaltown/2014decemberb
http://www.nxtbook.com/farran/dentaltown/2014november
http://www.nxtbook.com/farran/dentaltown/2014october
http://www.nxtbook.com/farran/dentaltown/2014newgrad
http://www.nxtbook.com/farran/dentaltown/2014september
http://www.nxtbook.com/farran/dentaltown/2014august
http://www.nxtbook.com/farran/dentaltown/2014july
http://www.nxtbook.com/farran/dentaltown/2014june
http://www.nxtbook.com/farran/dentaltown/2014may
http://www.nxtbook.com/farran/dentaltown/2014april
http://www.nxtbook.com/farran/dentaltown/2014march
http://www.nxtbook.com/farran/dentaltown/2014february
http://www.nxtbook.com/farran/dentaltown/2014january
http://www.nxtbook.com/farran/dentaltown/2013december
http://www.nxtbook.com/farran/dentaltown/2013november
http://www.nxtbook.com/farran/dentaltown/2013october
http://www.nxtbook.com/farran/dentaltown/2013newgrad
http://www.nxtbook.com/farran/dentaltown/2013september
http://www.nxtbook.com/farran/dentaltown/2013august
http://www.nxtbook.com/farran/dentaltown/2013july
http://www.nxtbook.com/farran/dentaltown/2013june
http://www.nxtbook.com/farran/dentaltown/2013may
http://www.nxtbook.com/farran/dentaltown/2013april
http://www.nxtbook.com/farran/dentaltown/2013march
http://www.nxtbook.com/farran/dentaltown/2013february
http://www.nxtbook.com/farran/dentaltown/2013january
http://www.nxtbook.com/farran/dentaltown/2012december
http://www.nxtbook.com/farran/dentaltown/2012November
http://www.nxtbookMEDIA.com