Merging is when one practice acquires another and integrates both of their clients into one business.
You may want to consider merging if:
– you are a dentist in mid-career and want to make more money without increasing your cost significantly.
– you are a late career dentist and want to retire by leaving your practice in the hands of a capable, new dentist.
Integrating into a practice that is expanding is a great way to slowly transition out of your daily routine. This works by having the selling doctor come on as an associate to the purchasing doctor and cutting back hours as his retirement approaches. Many of our clients who use this process to sell their practice find that their customers also appreciate the prolonged introduction to the new practice owner.
Dental practice acquisitions and mergers are one of the quickest and most effective ways to increase profit for an established dental practice. In addition to increased yearly production, merging also adds considerable equity to your business immediately with an increased patient count.
Some other benefits include:
– Obtaining new patients without the risks of wasting advertising costs through nonproductive channels
– Getting highly active patients who have been receiving regular treatment for decades. Many of whom are happy to have a quality dentist and are agreeable to paying fair premiums.
– Incorporating hygiene patients who may need to be educated about a more comprehensive plan for their dental care. This creates a happier and healthier patient base immediately, while generating revenue from bigger procedures.
– Having a highly experienced dentist come on as an associate can be a valuable resource for the purchasing doctor. They can teach you the secrets they have learned from years in the business and give you personal insights into your new customers.
Read our example of how the numbers can play out for a merger.
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