I’m Interested in a Practice

How do I assess whether it’s a good fit for me?

When you find a practice that piques your interests, engage your advisors. Review the practice appraisal, attend a practice showing, conduct your own research and ask questions of the seller to ensure you have all the information you need to make an informed decision about whether to make an offer.

Keep in mind, your initial assessment is just to determine whether you’re truly interested in the practice and if it meets your criteria. There will be an opportunity later in

Location

Exposure

Is the practice in your preferred geographic area? Also, how much exposure does it get from foot and vehicular traffic? The greater the visibility, the greater the exposure which helps drive new patient flow. The patient base is the most valuable asset in a dental practice, so strong new patient flow is key to offsetting natural patient attrition and growing the patient base. An effective marketing plan, as well as internal referrals from existing patients are also important, but a practice that clearly stands out visually will attract more attention.

Practices with the best exposure are those with streetlevel, retail space, with prominent signage on a main traffic artery, as opposed to practices on an upper level of a medical or high-rise building.

Accessibility

Is the practice easy to get to? For example, is the office close to public transit, bus stops and/or subway stations? Is there enough parking for patients and staff, and is it free or pay parking?

Competition

How many dentists are in the surrounding area and is the population large enough to keep them all busy and generate a steady stream of new patients?

the process to conduct a detailed due diligence on the practice with the assistance of your advisors. This would entail a deep dive into the financials, contracts, regulatory and legal compliance, status of equipment, patient base, patient care and general operations of the business. Below is a list of items you will want to consider in your preliminary assessment to determine if the practice is a good fit for you based on your personal goals, treatment philosophies and scope of practice.

Surrounding Area

Take a drive around to get a feel for the area. Is there a sufficient source of patients? For instance, is the surrounding area primarily residential, or commercial/ industrial? Residential pods are often the greatest source of patients; however, some patients prefer a dentist closer to work and therefore come from local businesses. Is there any local residential development planned or underway? Information on local development can also be obtained from the city’s website or planning department.

Tenant Mix

Consider the mix of businesses in the plaza, building and/or immediate area and whether they complement a dental office. Is there a strong anchor tenant, like a popular pharmacy or grocery store to attract an abundance of people to that location? What is the demographic of the area? Are there other healthcare providers in the plaza or nearby from which referrals may arise? Are there a number of vacant units meaning the location may not be very busy?