New Practice Ownership Road Map to Success

OWNING A DENTAL PRACTICE IS LIKE A LONG ROAD TRIP.

Try to enjoy the experience and recognize that like a long road trip, sometimes the road is going to be bumpy, sometimes some of the rest stops might serve food that is hard to swallow, and you may have to occasionally deal with some road rage. Ownership is an adventure and the goal is your transition from associateship to the finish line, which will be your own transition and balloon payout. One of the best parts of a road trip is you are in charge of your own destiny. You are not sitting in someone else’s car as a passenger, but you are in charge: you can take detours, go at the speed you want to travel, and stop whenever you want.

Using the road trip analogy, your first 1-2 months of ownership are going to be on a dirt road with lots of potholes and unexpected obstacles showing up out of nowhere. For months 3 and 4 you’ll find yourself on a gravel road with fewer obstacles and potholes. When you reach 5 and 6 months post-acquisition you probably won’t even notice but suddenly, you’ll be travelling on a paved road. While the shoulders might still be graveled and you’ll need to stay focused on the path you’re taking, for the most part ownership will become smooth sailing.

So, You’ve Bought a Practice – Now What?

If you’re planning to purchase a practice or recently became an owner, you already know there’s a whirlwind of tasks ahead. While many are straightforward — such as financial management or the operational details of the practice that your accountant, the previous owner or other advisors can help with-some of the most impactful steps are less obvious. These subtler strategies can help you integrate seamlessly into your new practice while fostering a positive, thriving environment.

Here are a few key tips to keep in mind as you embark on this exciting journey:

Change as little as possible during the first month or two.

Obviously, payroll is going to change, and you are going to need to hire a bookkeeper or setup your accounting software right away. Things that
don’t directly impact staff or patients can be implemented when you start, like starting new advertising activities. However, for significant
changes it may be advisable to wait for a few weeks or even months. Ideally, you want to observe everything before suggesting changes: how do the staff members interact with patients and other staff; how is scheduling handled; is there a strong recall/follow-up program in place; who does the supply ordering and is this tracked; how are treatments scheduled; what are the current billing practices; and more.

Understand your new practice.

Stay involved in the daily operations of your practice. An Office Manager is essential to the smooth operation of your practice, but it’s important for you to stay engaged with the dayto-day activities. This allows you to make informed decisions and step in if necessary, whether the Office Manager is on vacation or taking a leave. Rather than removing responsibilities, ensure the Office Manager involves you in all processes, so you’re always prepared to take over if needed.

Be prepared for potential wage increase requests from staff.

Know when each team member last received an increase so you can respond thoughtfully and confidently if the topic arises. Having a prepared response ensures you’re ready to handle the situation smoothly.

Don’t use the loan deferral option that comes with your bank financing unless required.

The sooner you can pay down your loan the sooner the cashflow after expenses becomes yours entirely.

Consider lease options for new equipment and technology.

New equipment can dramatically increase your staff and patients’ satisfaction without significantly increasing your expenses annually. Most equipment leases are designed like a rent-to-own agreement, allowing you to either own the equipment outright by the end of the lease term or purchase it for a minimal cost.

Don’t underestimate the value of meeting all of your patients, face-to-face, one at a time.

This will not happen overnight. Set your own goals. An example might be striving to meet 75% of the patients by the end of year 1, with the expectation of meeting 100% of patients by the end of year 2. The previous owner will hopefully be staying for a transition time frame to help eliminate the risk of patient attrition but it is up to you to maintain that goodwill once the previous owners eventually leaves.

Look for opportunities to impress your new staff and/or to make their experience in the practice even better:

• Host a welcome lunch/dinner: Team bonding happens best in casual settings, not formal meetings.
• Set up a suggestion box: Your team has great ideas — give them an easy way to share ideas on how to increase efficiency, improve the recall system, interact with patients, and more!
• Spruce up the staff room: Fresh paint, comfy chairs, or small upgrades can boost morale big time.
• Try morning huddles: Quick 10–15 minute daily or weekly meetings keep everyone aligned and engaged.
• Upgrade tech tools: Digital scanners or x-rays make work easier and free up time for more patient care.

Before the deal closes, ask the selling transition consultant/sales representative what opportunities they saw for improvement – in the space, with the hygiene program, cost efficiencies, equipment upgrades, etc. If you are not buying the practice through a brokerage, ask your accountant for an analysis of the appraisal specifically from the standpoint of making improvements.

Consider having your practice appraised after 3 to 5 years of ownership. Think of it as part of your journey—a routine tune-up to keep everything running smoothly. Regular maintenance helps ensure efficiency, identify issues that may affect your current or future liabilities, and assess the value and marketability of your practice. A thorough appraisal not only highlights areas to address but also provides actionable recommendations to enhance profitability and optimize your ownership experience, keeping you on the best path toward your ultimate goals.