Buying another practice

We will make sure your purchase will be a success

Buying another practice

We will make sure your purchase will be a success

We would advise anyone thinking of owning multiple practices to first of all make an honest assessment of their motivations. The assumption among many owners is that further acquisitions mean success.
Efficiencies can of course be gained with scale but on the other hand without strategic planning you could find yourself exposed to mounting costs across multiple premises that aren’t generating enough revenue.
The first question we would ask is have you done everything to maximise profits in your current dental practice? Maybe the excitement of buying another practice is a welcome distraction, but it’s difficult to justify investing in a new venture if there is headroom in your current business.
Much of this is psychological. Dentists often perceive investments differently, for example a £50k investment in marketing in your current practice might sound expensive, whereas an investment of ten times that amount in a new practice might sound cheap. Yet in terms of actual risk and ROI the £50k option is a no brainer.

HOW WE CAN HELP

What we want to achieve

Our mission is to provide this kind of joined up thinking to your acquisition so that whenever you make a purchase you can be sure it’s serving your wealth strategy. The conventional wisdom is if you can find a way to finance a purchase you should go for it because dentistry is growth industry and it will always pay off. Unfortunately that’s not always the case. The market is changing. Margins are being squeezed as costs rise, and there is pressure to compete on price as competition stiffens. Only coherent business models with a well defined market position and commercially savvy leadership will be around in ten years.

Our mission is to provide this kind of joined up thinking to your acquisition so that whenever you make a purchase you can be sure it’s serving your wealth strategy.

The conventional wisdom is if you can find a way to finance a purchase you should go for it because dentistry is growth industry and it will always pay off. Unfortunately that’s not always the case. The market is changing. Margins are being squeezed as costs rise, and there is pressure to compete on price as competition stiffens. Only coherent business models with a well defined market position and commercially savvy leadership will be around in ten years.

Our INSIGHT

"Tragically we often see people with one successful practice and a second practice that’s a time suck where they’re just working for their associate fee. It’s sucking their management time out of the good practice and, worse still, it’s an emotional burden."
Ross Martin, Director at Hive Business.

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