Buying and selling dental practices have become a lucrative business opportunity today. Buying a dental practice is, however, an expensive thing to do. Most of those who buy dental practices are dentists and they do so with an aim of enhancing financial stability and a successful career. Before you buy a dental practice, you need to make some serious financial decisions. Nonetheless, before you invest your money in any dental surgery sale Brisbane market has today, it is important to get some financial information pieces. Such financial details include:
It is always good to know why a dentist could be selling their practice. Don’t always assume they have gotten greener pastures elsewhere. Of course, every dentist would show how profitable the practice has been. For you to confirm this, you would need to get tax returns of about 3-4 years. This would help you to know the historical financial performance of the dental practice on sale. Financial data helps in analyzing stability and monitoring trends of any dental surgery sale Brisbane has to offer.
Practice valuation is prepared by certified valuation analysts. Hiring competent experts to prepare practice valuation is one indication that the seller is serious about the practice sale. As a buyer, you should keenly examine the preparer’s credentials and how meticulous the reports are. The person preparing practice valuation should check on the methodologies they use to calculate the profitability and revenue of the dental surgery sale in Brisbane.
Model of cash flow
Every buyer wants to be sure the practice they are buying had a good cash flow. There are always reasons behind poor or good cash flow in any business. Cash flow is what most buyers use to determine the viability of the Brisbane dental surgery sale in the market to know whether it’s a worth investment. The cash flow model used should project the financial status of the business at least five years after the acquisition. The model should also consider debt service required, fixed or variable operating expenses, growth rates and the compensation the buyer needs to finance their lifestyle.