Think ahead

Lorraine Hunt looks at the options available for first time practice buyers.

All too often first-time buyers choose not to proceed with a great acquisition opportunity because they have been thinking about the practice price only. But it is of paramount importance to think ahead. It’s safe to assume that your dental career will cover a span of 15 years minimum, and for each of those years you will generate a set amount of income. With a simple sum you can calculate the total that you are capable of earning during the 15-year period. Now think ahead to when you purchase your own dental practice: you will be acquiring the assets (the goodwill of the business, the equipment, the fixtures, and fittings and so on) but you will also be acquiring the historical income streams which is just as, if not more important. If you should have to pay an additional £20k to £40k more than what you feel a practice is worth, then considering the calculation you have just made, this additional amount is meaningless over your career – especially if the practice in question has a strong income history and a healthy profit margin.