What does collections mean when purchasing a practice?

[darkguy2k]

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For example, a post for a practice going on sale states "the practice collected over $300K this year". Does this mean this is how much you will get after paying off your staff, dental supplies, and all the other overhead?

 

[OhioDMD]

No, that means that is the total money actually received before expenses. Net is the term thrown around most often as the term for profit after expenses ( 700,000 collections, high net).