In California, buyers need clear answers about purchasing a dental practice. These answers determine if it is feasible to buy a practice of interest. They also define the rights of the new owner based on their choices. The following are FAQs for buyers who want to purchase a dental practice for sale in California.
What is the Purpose of a Practice Appraisal?
The primary purpose of the practice appraisal is to prevent the buyer from getting ripped off. The appraisal defines the current market value of the property. This valuation is necessary when the buyer tries to acquire financing. It also prevents common mistakes made during real estate transactions. The appraisal also includes the value of the practice based on the patient roster and earning potential.
What Financing Options are Available for Dental Practices?
The buyer has three financing options for purchasing a dental practice. They acquire a business loan through a private lender in which they have an existing relationship. They file for the SBA government-backed loan for the business. Finally, they acquire a business loan through lenders who manage dental practice financing primarily. However, cash sales are also available for a dental practice since it is attractive to investors.
What is the Difference Between an Associate and a Partner?
An associate is another dentist that uses the practice to provide dental services. An associate can attract more business for the practice. However, the associate acquires no legal ownership of the practice. A partner is a dental professional that purchases at least one-half of the practice and helps the other owner make decisions about the business.
What are the Advantages of Buying an Existing Practice?
Instead of buying a new practice, it is advantageous to choose an existing practice. These practices have existing fixtures, furniture, and tools. They cut the initial cost of starting the practice in half. Additionally, they provide the new owner with an existing patient roster and an immediate earning potential.
In California, buyers need to take steps to protect their interests when purchasing a dental practice. They must also learn how certain choices affect their earning potential and rights to the property. Buyers who want to review a dental practice for sale in California contact Western Practice Sales.