What are the benefits of buying a practice versus starting up a new practice

Buying dental and medical practices offers many benefits to a potential buyer. The most important factor is having the financial predictability of buying an ongoing practice and knowing that immediately after the Closing you will have patients that will be waiting for you at your new office. This factor is more prominent in certain types of practices depending on whether your practice lends itself to patients that will be returning patients or is your practice heavily relies on other medical professionals referring patients.

This is true because in valuation of practices and setting the purchase price you should investigate the gross revenues and net profits of the subject practice in recent years as well as the potential of that practice to generate the same or more revenues and profits. Buying a practice also allows dentists and doctors to expand their practices without the legal red tape involved in opening a new practice including obtaining new permits and building out a new office. Ultimately, various factors should be carefully considered in determining whether you should purchase a practice or start up a new one, the least of which are the viability of practice, its potential to generate revenues and profits compared to the premium that you will pay in form of the purchase price.

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