Posted 02-26-16

Dental Business Institute: Growth Through Practice Acquisition
by Eugene Heller, DDS, VP of Transition Services, Henry Schein

The fastest means of growth for a dental (or any business) organization is the acquisition of existing practices. Understanding the key considerations when acquiring a Dental Practice is paramount in the process of growing a dentist's organization/business.

1. The acquisition process starts with clear, identified goals for an acquisition. Only candidates should be considered and evaluated that provide positive answers to those goals. These "detailed" acquisition goals must define more than just practice location, size, and age/condition of equipment.
2. While everyone likes to get a "good deal", the dentist needs to understand the ultimate cost of losing out on a practice acquisition opportunity that otherwise meets all of their acquisition criteria while they negotiate for the best price. In today’s acquisition marketplace, the purchase price paid is not nearly as important as the shortage of available, suitable practices on the market; practices are selling at an all-time high when the price is compared with the annual receipts.
3. The most important asset acquired is the "patient base". This is therefore also the most important asset to accurately estimate. Patient base equals not only immediate cash flow, but also the opportunity to increase prior results and profits as new systems are installed, previously referred procedures are retained, and the operational efficiencies of your current practice are applied.

Acquisitional growth is the most efficient and cost effective way to grow any business. To learn more about growth through acquisition and the other topics taught at the Dental Business Institute, visit www.HenryScheinDental.com/DentalBusinessInstitute.