Hello all
I was just curious as to what purchasing a practice involves. I know I've got years to go, but I just want an idea.
My question is:
If a fairly new dentist (with a few years of experience, of course) decides to go forth and buy an already standing practice (with a patient base), does said dentist need 20% down like a house morgage? Or, if said dentist already has a morgage, will banks not require 20% down? How does all that work?
Also, when looking online at "for sale" dental practices, most websites cite "cash flow". Does that number not include overhead? So I'm assuming that to find what the dentist takes home at the end of the year, it's [cash flow]-[overhead] ?
Thanks guys!
I was just curious as to what purchasing a practice involves. I know I've got years to go, but I just want an idea.
My question is:
If a fairly new dentist (with a few years of experience, of course) decides to go forth and buy an already standing practice (with a patient base), does said dentist need 20% down like a house morgage? Or, if said dentist already has a morgage, will banks not require 20% down? How does all that work?
Also, when looking online at "for sale" dental practices, most websites cite "cash flow". Does that number not include overhead? So I'm assuming that to find what the dentist takes home at the end of the year, it's [cash flow]-[overhead] ?
Thanks guys!