Suppose you are considering purchasing a dental practice in Louisiana or Mississippi. ADS Lovelace and Associates can assist you in finding the practice that best suits your needs based on location, size, and other relevant factors.
If you have already located a practice to purchase, contact us for an independent valuation.
Before receiving sensitive information about the dental practices we list, all potential buyers must first sign a confidentiality agreement. We also highly recommend securing the services of an accountant to assist in various aspects of the purchase.
A buyer must be able to (1) pay practice expenses, (2) pay the banknote on the money borrowed, and (3) take home a typical salary.
The “Market Price” does not always allow the buyer to pay his expenses, pay the note, and receive payment for his work.
A cash flow analysis is always required to determine the value of a practice. Lawsuits and bankruptcy are the likely results of overpricing.
What needs to happen in a dental practice transition?
I have read that dental practices are worth 70% of their gross receipts averaged over the past three years. Is that true?
Rules of thumb are simplistic and don’t usually work. Unless the practice in question is “average or below average” in all respects, you should probably get an appraisal. Your lender will also want an independent estimation of value before funding any loan.
What is a reasonable Covenant Not to Compete?
A reasonable Covenant not to Compete will protect the employer’s goodwill without being excessively restrictive on the Associate. These areas tend to be smaller in Urban areas and larger in rural areas. However, individual states interpret these agreements differently, so please consult an attorney for definitive advice. In Louisiana, the maximum duration for these agreements is two years from the sale of a practice or termination of employment. This distance for the Covenant is limited by the practice’s service area, where most of the patients live and/or work.
Will the staff stay after I purchase the practice?
The staff typically is as worried about keeping their job as you are about keeping them. If they leave, they must start working for a new doctor anyway, so why wouldn’t they give you a chance?
Will the patients accept a new dentist?
The patients will accept a new doctor if the introduction and transition are handled the right way. The seller’s endorsement, coupled with staff acceptance and enthusiasm, is the key.
How do you evaluate a practice?
We utilize several different methods to determine fair market value, including market comparisons, cash flow analysis, and capitalization of earnings methods.
Starting Your Career
If you are just starting your career in dentistry, you will receive a free 30–minute consultation with ADS Lovelace and Associates to discuss:
Opportunities you have found
Opportunities that are available
Information on starting a practice
Information on buying a practice
ADS Lovelace and Associates would like to assist you in choosing the career path in dentistry that is right for you. Call for your free consultation today.*
As you begin your life after school, you have many employment choices. Do you go into a corporate or group office, join the military, find an associateship with a private doctor, or start your own private practice? ADS Lovelace and Associates can help you plan for any eventuality regardless of your path.
An initial important consideration, regardless of employment type, is how much income you will need to earn. This factor is important in narrowing down potential opportunities. You must consider the cost of living where you would like to live, as well as any student loan payments and your personal lifestyle.
While the primary constraints on most employment searches are geographic and financial, additional important considerations include the type of dentistry you want to practice, personal practice philosophy, and your immediate and long-term goals.
*This offer is for all young dentists in their senior year or within one year of graduation from Dental School or Specialty school.
The ADS Dental Transitions network has relationships with every major lender throughout the country. Our preferred lenders are established leaders in the industry, demonstrating an understanding of the unique business of dentistry.
ADS Lovelace and Associates will assist you in finding financing to start a practice or purchase a practice and will guide you through the process.
ADS Lovelace and Associates will:
Analyze your plans and assist you in finding the correct financial package to suit your needs
Walk you through the application process
Assist you in the purchase of the practice or the opening of your new practice
Help you find 100% financing plus working capital to purchase a practice or to begin a practice in an area needing a dentist
Assist you with finding financing for the construction or purchase of a building
Guide you through the process if you wish to build, purchase or lease a building