The area of the Covenant not to compete (non-compete clause) is different for each dental practice. The distance for the Covenant is usually correlated to the service area of the practice which is where most of the patients live and/or work.
Yes, when they are written correctly. Consult with an experienced transition broker and/or legal professional to ensure your Covenant not to Compete is enforceable.
Your patients will accept a new doctor if the introduction and transition are handled the right way. Your endorsement, coupled with staff acceptance and enthusiasm, is critical to ensure a smooth transition.
The adage, "Location, location, location" has an impact on the sale of a dental practice. In a good area, the transaction can happen in as few as 6-12 weeks after the valuation is completed. In a rural or an area with less demand, it could realistically take years. The length of time on the market depends not only on the practice location but also on several other variables.
We utilize three different methods which we weigh and average in order to determine fair market value. The four methods are income approach, revenue / collections approach, and asset approach.
If you're thinking about selling your dental practice in the future it can benefit your bottom line to make strategic investments in your business. Some basic improvements include cleaning up clutter, adopting digital software / x-rays, increasing your number of patients, and production.
While three years of financial information is important to determine the value of an office, rules of thumbs are simplistic and don't usually provide the correct value. To find out the true value of a dental office, call us and we can help you assess a value.
There is always the possibility that your practice could lose patients in the process of transitioning to a new dentist. However, your patients will be more likely to accept a new dentist if the transition plan and introduction are communicated clearly to current patients. Your endorsement, coupled with staff acceptance and enthusiasm, can play a key role in maintaining your patient list through a transition.
In most cases, it is possible for the buyer to secure 100% financing so you will be paid in cash at closing. However, if the valuation is higher that banks are willing to finance, then buyers will have to come up with a down payment or seller needs to lower their price.
When deciding if hiring an associate is the right move for your practice, there are many elements to consider. The higher your gross production and the more patients you have, the better candidate you become to hire an associate. If you're lacking patients, initially you'll be subsidizing the associate and your personal income will likely suffer. Ultimately, every dental practice is different.
It really depends on location, income trajectory, procedure mix, insurance mix, and other factors. For example, a low quality location with declining revenues and high state insurance aid will get significantly lower pricing than a high quality office location with increasing revenues and higher percentage of PPO insurances.