With all the craziness in the world right now, a lot of buyers are asking the question, “Should I even be looking at buying a practice right now?”
I understand the sentiment. When things seem out of control, it’s natural to want to remove things from you’re life that seem like a risk.
Buying a cart full of groceries? Easy to justify.
Buying a dental practice for hundreds of thousands of dollars? Seems riskier on the surface.
While I certainly don’t have a crystal ball and can’t know for sure what will happen in the future, I think buying a practice now is still a good idea.
Here are three reasons:
1) If you own, no one can fire you
One of the most common reasons buyers give me for wanting to own their practice is that they want control over their career. They don’t want someone else telling them who they can and can’t treat, what procedures to recommend and how much (or little) they can work.
Well, if you’re an employee someone else still controls all of those things. AND they control your job.
And, if things do slow down guess what the first expense to cut will be?
Could you see a downturn in collections in a practice you own in the near-term? Sure. But if that happens as an owner, your income will go down, not go to zero.
Ownership means having ultimate control.
2) Dentistry is relatively recession-proof
Even if people are quarantined and the economy slows down, people will still make horrible food choices. They won’t floss as often as they should. Their teeth will still start hurting.
People will still need a dentist.
They will need you.
And after the panic subsides a bit, people will realize that dental offices are one of the more hygienic places to be. Every tool gets sanitized. Everyone already wears a mask much of the time.
Dentistry has historically been a relatively recession-proof industry. In all likelihood, it’ll be fine this time too.
3) Sellers are probably just as excited to sell as you are to buy
If you think that you’re nervous about buying right now, think about the seller who just listed their practice and made retirement plans! If you come in, do an analysis and like the practice, and then submit a fair offer?
That seller is going to be thrilled.
Sure, their retirement account probably just took a hit. On the margin, a few more sellers might choose to continue practicing rather than listing their practices in the next six months.
But life moves on. People want to move on with their next steps in life. Sicknesses happen. Practices will come up for sale.
Be the smart buyer who doesn’t panic and looks for the right practice, in the right geography, at the right price.
And move forward with a purchase confidently.
Stuck at home the next little while? Why not learn how to FIND a practice? How to read a P&L or tax return? How to successfully negotiate with a seller?
Check out: https://www.practicepurchaseblueprint.com/