Whether you’re ready to expand your business or hoping to start your practice by acquiring another, it’s an exciting and stressful time. Part of the stress comes from how complex and lengthy the process can be. After all, you don’t want to risk skipping over important questions or documents that could give you better insight into what you’re acquiring. Here are some of the best practices you should follow when handling a dental practice acquisition.
Look at the Overall Health of the Practice
Just like you might bring in a third party to help audit the condition of your practice for an objective view, you can also do the same during the acquisition of a new practice. Don’t be afraid to ask for a broad range of information, including things like:
- How patients pay, whether that is with cash, credit or debit cards, insurance, or financing
- What types of treatments are being provided, and what types of treatments are bringing in the most profit
- What technology is currently being used, and what technology will likely need to be upgraded within the next couple of years
- How many new patients are being brought in every quarter or month
- If they currently have a website that allows for payment and scheduling an appointment
While the practice might not volunteer all of this information early in the negotiation process, it should be available to you before finalizing the sale.
Know Who You’re Working With
The owner or dentist who currently operates the dental practice you’re looking at acquiring can play a huge role in how successful the practice is once you take it over. You are not just going to be taking on the great parts of the practice, like profitability—you will also be taking on the problems that developed, including things like poor patient retention or outdated technology. Talk with the current dentist or owner to learn more about why they are selling. How do they currently run the practice? How have they historically approached treatment? Do they have any treatment plans currently set up that you might not want to continue if you take over?
Think About the Physical Factors
While there are many parts of a practice that you can change, like financial processes or the people working in it, there are some that are not going to change, like the physical location and surrounding area. How much competition is there around the practice? What demographics does the practice currently target? Should those demographics be reassessed if you take over? What does the practice currently do to market and engage with the community?
Don’t Blindly Believe What You’re Hearing
In most acquisition situations, the departing dentist or owner has a lot more motivation to sell. As a result, they will likely emphasize the positives and try to avoid speaking about the negatives. If something sounds too good to be true, there is a high probability that it is. For example, their definition of who is an active patient might differ wildly from yours and make it seem like there are many more active patients than there really are.
Improve Your Dental Practice with APEX Reimbursement Specialists
Whether you’re looking for a way to make the insurance verification process easier or hoping to improve your overall patient communication plan, APEX Reimbursement Specialists is here to help. Contact our team today by calling (410) 710-6005. We look forward to working with you to make your practice a more profitable place.