Re: Buying an existing practice...

From: Tony Bad (SpamSpamSpam_at_bakedbeans.spam)
Date: 10/11/04 

Date: Mon, 11 Oct 2004 14:33:28 GMT

"Vaughn" <vaughnsimonHATESSPAM@att.fake.net> wrote in message
news:fvjad.524838$OB3.515821@bgtnsc05-news.ops.worldnet.att.net...
>
> "Stormin Mormon" <cayoung61-#spamblock*-@hotmail.com> wrote in message
> news:nF%9d.291271$bp1.145963@twister.nyroc.rr.com...
> > Couple things come to mind. First, you're likely to lose a few patients who
> > just had to be seen by Dr. Old. And then when Dr. New comes along, it "just
> > isn't the same".
>
> And I would guess that the number of patients lost will be considerably
> greater if the practice is sold "cold turkey" rather than selling to an
> established associate who is at least somewhat familar to the patients. What
> that means (at least to me) is that any given practice is worth less to an
> outsider than to an established associate.
> >

Great point...this is a particular concern if the "old" dentist has been slowing
down, and electeing to "wait and see" of things. "New" guy will come in, give
people and honest and real assessment of their needs, and they will be off and
running. They will probably find "new" guy was right, but by then they are
likely lost to the practice. In other words, if buying an older practice, learn
how the patient's needs have been addressed. Watch the older dentist at work,
and see if he has been taking a wait and see approach. If so, this must be
considered when making the transition. Changing from a wait and see to more
proactive practice needs to be a gradual evolution.

> > Second, the practice has to support both the costs of doing business AND the
> > payments to dr. Old.
>
> Exactly! This is the main difficulty in selling any small business.
>
> I have seen many such sales fail (non dental) because the business
falters
> after the sale. Sometimes the business is just dead, (as are the payments to
> the original owner) sometimes the original owner comes back from retirement to
> attempt to resurect the ashes of the business. I know one case (a resturant)
> where this happened three times! The moral to this story? If you are selling
a
> business, get cash; even if you have to settle for a lot less.
>
> Vaughn
>

As a dentist, people will tell you it will take a while to get busy if you start
your own practice. True enough, but you can afford to sit and wait. Buying a
practice will mean your income needs are immediate.

T

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