Older dentist has had practice on the market:
Here’s some info:
Free standing building in great location, wants to lease his office $1500 per month.
Currently works 3 1/2 days per week with 5 hygiene days.
4 operatories. Older equipment, no computers in office.
Referring all endo, pedo, complete dentures, implant restorations, most oral surgery.
Heard from other local dentists who have seen his patients, there is a lot of work out there- crown and bridge especially.
Been in location for 10 yrs. All FFS, no PPO’s/medicaid
Recall schedule full- looks like half the production is hygiene
2006: Gross receipts $316K Net profit 121K
2007: Business done $352K Prof Receipts $357K Income before taxes $109K
2008: Business done $373K Prof Receipts $366K Income before taxes $91K
Asking price: $220K
How many hygiene hours per week? If 5 days at 8 hours, that’s 40 hours, however, sometimes a day does not equal 8 hours. Find out HOURS.
Even if between 32 – 40 hours of hygiene that should be approximately $175k-$200k in hygiene production alone, therefore doctor is only producing $150-$175k!!!
Under producing is an UNDERSTATEMENT. Verify of course.
If the hygiene production above is fairly accurate, dentistry should be at least $500k, making this a $650kplus grossing office and $220k is a great steal in my opinion. Again, do due diligence.
Checking the fee schedule is a great idea. Hopefully you know the fees for the area and can evaluate that potential as well.