Episode summary
In this episode of Summing Up, Richard Keeler joins James to explore the process of purchasing a dental practice. Aimed at dentists considering practice ownership, the discussion covers the key stages of acquiring a practice, from identifying suitable opportunities and carrying out due diligence to understanding the financial commitments involved.
Richard and James examine the factors that can make a practice acquisition successful, including assessing profitability, managing the transition to ownership, avoiding common financial pitfalls, and understanding the differences between share purchases and asset purchases. They also discuss the realities of becoming both an employer and business owner, highlighting the importance of careful planning and feasibility studies before proceeding with a purchase.
Key takeaways
Practice ownership is a major step that requires careful planning and due diligence.
Assess both the financial performance and long term potential of a practice before buying.
Understanding the difference between share and asset purchases is crucial.
New owners need to be prepared for the responsibilities of employing staff and running a business.
A feasibility study can help identify risks and support informed decision making.
Professional advice can help avoid costly mistakes during the purchase process.
Chapters
00:00 - Introduction and the associate journey
01:23 - Associate vs. practice owner
02:47 - Evaluating profitability and hidden costs
04:53 - Managing debt and tax implications
06:02 - Transitioning roles and business realities
08:30 - Importance of a feasibility study
10:36 - Asset purchase vs. share purchase
12:56 - Post-acquisition obligations and systems
15:46 - Key takeaways and wrap-up
Guest bio
Richard Keeler is a Partner at Lovewell Blake and a specialist adviser to dental practices and healthcare professionals. With extensive experience in accounting, tax planning, and practice transactions, Richard helps business owners make informed financial decisions and achieve their long-term goals. He is also a regular speaker on financial and business matters within the healthcare sector.
