How much do dental practices cost to purchase

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hs2013

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I was just doing some research and it seems like there are tons of clinics out there that are grossing like 600k with like 5-6 weeks of vacation and working just 4 days a week. So I know a lot of that 600k will be gone to other costs, but how much would it cost to actually buy one of those practices? Also how much would you estimate those dentists make in net income assuming like 2 secretaries, 2 hygienists, 1 assistant?

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can we get into dental school first?
 
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Lol, this is the predental forum. Post this on the Dental to get better responses.
 
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Lol who cares if this is pre-mature I want to make sure I know what I am getting into.
 
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This is actually a very valid question and more valid as the cost of education increases. You should be aware of the returns on your educational investment before making the decision to accept an offer. The cost of practices varies depending on the location, typically you will pay roughly 70-90% of the yearly gross income of that practice. So if a practice gross income is 700k a year, you will pay 70% of that for the practice.
 
SDN is an awesome resource for certain things, but for questions like this, I've found DentalTown to be far more helpful. There's seemingly endless reading covering a huge range of practical topics for dentists. Check out the site if you haven't seen it yet.
 
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Honestly I'm very fortunate in the regards that I don't have to pay back any student loans. That's why for me I think after a couple of years of associating and saving some cash, I should buy a practice as that would lead to the best income potential. I guess my first practice will essentially be my student loan and as a practice owner I should be making so much that the monthly payment for my practice loan won't even be much.

It's nice to see though that well run practices can be had at those prices.
 
I was just doing some research and it seems like there are tons of clinics out there that are grossing like 600k with like 5-6 weeks of vacation and working just 4 days a week. So I know a lot of that 600k will be gone to other costs, but how much would it cost to actually buy one of those practices? Also how much would you estimate those dentists make in net income assuming like 2 secretaries, 2 hygienists, 1 assistant?

http://www.henryschein.com/us-en/dental/services/PPTPracOpps.aspx
http://www.aftco.net/Buying-Dental-Practice/Search-View-Dental-Practice-Listings.aspx

Factor in 55-70% overhead and do some math.
 
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Damn, 50-70% overhead, does that include everything though? Like employee salary/benefits, equipment, maintenance, building costs, insurance, etc.? Because even in an office grossing 600k with 60% overhead, that's 240k before taxes in salary. So it seems like there are definitely great opportunities to be had out there. Plus don't you get extra tax breaks being a business owner?
 
Damn, 50-70% overhead, does that include everything though? Like employee salary/benefits, equipment, maintenance, building costs, insurance, etc.? Because even in an office grossing 600k with 60% overhead, that's 240k before taxes in salary. So it seems like there are definitely great opportunities to be had out there. Plus don't you get extra tax breaks being a business owner?

Obviously varies from practice to practice, read the descriptions, some say net income.
 
Damn, 50-70% overhead, does that include everything though? Like employee salary/benefits, equipment, maintenance, building costs, insurance, etc.? Because even in an office grossing 600k with 60% overhead, that's 240k before taxes in salary. So it seems like there are definitely great opportunities to be had out there. Plus don't you get extra tax breaks being a business owner?

LMFAO! As long as obonga is running the show you can keep dreaming.
 
My dentist had to sell his practice due to injuring his hand and not being able to work anymore and one of the hygienists told me that he sold the practice for ~1m. The practice had 4 expanded duties assistants and 2 hygienists, and 2 receptionists/front desk operators.
 
I was just doing some research and it seems like there are tons of clinics out there that are grossing like 600k with like 5-6 weeks of vacation and working just 4 days a week. So I know a lot of that 600k will be gone to other costs, but how much would it cost to actually buy one of those practices? Also how much would you estimate those dentists make in net income assuming like 2 secretaries, 2 hygienists, 1 assistant?
Very complicated question(s).

Buying a dental practice requires you to know ALOT about things you are not educated in. You need to see how much the practice grosses (example 600k) but what are the costs/assets/loans of the office? how much is the dentist netting or taking home? Whats the difference between them? And how do you verify what is reported to you is the actual truth? by that I mean, if a practice "grosses 600k" how do you know its 600k and not 400k? You gotta be good at reading tax returns and trying to make sense of it (or hire a consultant and they'll explain to you the numbers). But then again, even if all the numbers make sense, does the office get enough patients money? what about new patients? Its A WHOLE lot of variables that go into play.

I am not gonna lie, I know nothing of this subject, if I were to buy a practice, I'll probably hire a professional who specialists in buying/selling dental offices even if it costs me $5,000-15,000.

The more money the practice brings home, the more it will cost.
 
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