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Practice Ownership Consulting

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21.01.2022 **Practice Ownership Course - Sydney 27/28 February** There has been a venue change and the new venue is: DentsplySirona Centre for Dentistry... Unit 19 39 Herbert Street St Leonards NSW 2065 There are 53 people already registered for this and we have 7 spots remaining as venue cap is 60 people. Please register ASAP to avoid disappointment. https://practiceownership.com.au/seminars/

21.01.2022 Our ground up build was featured in Australasian Dentist magazine this month. Have a read! http://emag.printgraphics.com.au/GAP_Australasian_Dentis//

21.01.2022 Hi All! We have had a massive amount of enquiry and consulting in the last few weeks with many people looking to start or purchase their own dental practice. It does not seem that covid has deterred many people. Our Brisbane Practice Ownership Seminar has been confirmed to proceed but with a reduced capacity so please register ASAP.... For our Melbourne Seminar in October, we can’t yet confirm if it will go ahead but should be able to do so in the coming weeks. In the seminars we will cover everything you need to know about ownership including staffing, budgets, costs and expenses, profitability, marketing, location analysis and selection, financing plus much more. To register: https://practiceownership.com.au/seminars/

20.01.2022 ** ** This is perhaps one of the least understood aspects of dental practice ownership. I have even had dentists who have been owners for many years fail to understand the difference. For any new practice owner in today’s high risk climate it is important they understand this concept thoroughly before embarking on ownership. At its core, profitability is defined as the amount of money that remains from your revenue after costs are deducted (in some ...Continue reading

18.01.2022 We have just purchased the land and had concepts done up for our second ground up build. Some of you may have followed the journey of our last build: https://practiceownership.com.au//8-chair-practice-constr/ This project has limited land available. This is right opposite our current shopping center and exposure is excellent. However, shape presents some challenges, not least of which is the fact I can’t get my preferred design of patient corridor separated from steri thor...oughfare. We will likely blog this journey too. Optima were our builders last time. However, we used architects and designers before handing over to Optima who did the build. We were so impressed with Optima, this time we are handing over everything to them and doing a full design and construction with a full turnkey project.

17.01.2022 We will be live in APPROX 20 mins with the associates webinar!

16.01.2022 Associates webinar 6pm tonight!

14.01.2022 There are only 4 days left before early bird rego end. We expect this seminar to sell out as we have almost 50 dentists registered already. https://practiceownership.com.au/seminars/

14.01.2022 **The Buying Process** So you have found a dental practice that meets your criteria and you have decided to purchase it. In this article we’ll discuss the sale process and what is required. 1) You need to have a buying entity setup. Ideally have this setup when you know you’re interested in ownership rather than when you find the practice. The reason for this is that it may take time to setup an entity and accounting structures. This lag may influence a vendor who may ...be after a quick sale to look at other offers. We recommend obtaining advice on financial structures from an accountant that does have experience with dental clients. 2) Unless you have a large trust fund or have major financial backing you will need to organise finance. Our recommendation is to use one of the industry specific finance companies as this will make the process much smoother. Once you know that you do want to purchase a practice then it is important to reach out to the relationship managers to get an idea of how much you may be able to borrow. 3) Finally, you will need to approach a lawyer to handle the sale contract. They will go through the specifics including aspects such as staff liabilities/contracts, lease negotiations, vendor restraint clauses etc. It is important you chose a lawyer who has experience in dental practice sales. Please also consider that along with the purchase price of the practice you will have initial costs associated with setting up accounting structures, lawyers’ fees, financing fees and stamp duty depending on the state. Further, please consider that you will need to allocate a certain amount to ordering materials and equipment that you can’t practice without. Our recommendations for professional help are below. We personally use and trust these professionals ourselves and for the sake of transparency we do not get any benefit from referrals. Accountant: Bhupesh Kaphle (BDO Partner) [email protected] Lawyer: Harry Nicolaidis (K&L Gates Partner) [email protected] Financier: Jason Savage (Medfin) [email protected] These professionals will be present at our next practice ownership seminar coming up in Sydney on the 27th and 28th of February 2021. These seminars have sold out in previous years so please register ASAP. https://practiceownership.com.au/seminars/ We also offer expert guidance in various areas of practice ownership. Please see the below link for more information. http://www.practiceownership.com.au/expert-guidance/

14.01.2022 The Haggle When we purchase items such as a television or a car we all want to feel like we got the best deal possible. It is disappointing when we find out our friend got a better deal on that new television or that new car. People try to translate this over when purchasing a dental practice they want to squeeze everything possible out of the vendor. Time and again Practice Ownership Consulting observes dentists lose good practices that are well suited to them haggling... over what is, in the overall picture, a small amount given the future earning potential of the practice and buyer’s earnings from that practice. It is obviously in the buyer’s best interest to negotiate the lowest sale price possible. However, when a suitable practice does become available that meets the buyer’s requirements haggling excessively or irrationally may lead to ultimately losing that practice. It can also alienate the vendor and if they do accept the offer make the transition particularly difficult. Purchasing a dental practice business is different to purchasing items such as a television or car. There are several reasons for this but perhaps the most important is around the limited supply of dental practices and suitability of the buyer to the practice. Not every practice is suitable for every dentist and many dentists spend years trying to find the right practice for themselves. Further, currently there are many more buyers looking for dental practices than dental practices available for sale. To summarise, before haggling consider if you’re willing to lose the practice. We cover this and much more at our practice ownership seminars. Our next practice ownership seminar is coming up in Melbourne on the 29th and 30th of May 2021 and Perth on the 26th and 27th of June 2021. These seminars have sold out in previous years so please register ASAP. https://practiceownership.com.au/seminars/ We also offer expert guidance in various areas of practice ownership including market appraisals and assessing potential practices to purchase for associates. Please see the below link for more information. http://www.practiceownership.com.au/expert-guidance/

13.01.2022 ** ** You’ve found an excellent area to start-up in and tenancy to lease. Now what? The landlord or its agent will provide a lease proposal or heads of agreement. This covers the key terms of the lease and is negotiable. However, it is important to note that any lease proposal or heads of agreement state that it is not binding until the parties review and sign the formal lease documents. Your lawyer will assist you in this regard. We will discuss some of the ke...Continue reading

13.01.2022 ** The Struggling Branch Practice ** Over the years we have analyzed over 15 practices that we consider to be a, ‘struggling branch practice’. We have noticed a common theme amongst these practices. 1) Almost always the owner has had another good to excellent practice (in terms of turnover) not far away (within 20-30 mins drive).... 2) The owner bought the struggling branch practice or started it AFTER the successful practice 3) The reason for sale is almost always listed as wants to dedicate time to other practice 4) Practice has always been presented as one that has significant opportunity. You can do this and that etc etc (usually expand hours because it’s operating only minimal days). The thing we want to establish is WHY someone with a great practice then has a struggling one. Honestly, what we’ve concluded is that they never understood properly, what makes a practice successful. For one reason or another, they landed on a successful practice and just thought their ability and skills will be easily replicated elsewhere and so they just bought (a small practice) or started any practice thinking it would be easy to get it up and running. They have then dedicated significant time and resources (including their own clinical time in a lot of cases), to get this practice going. Remember, the potential payoff is huge for them. They have one very profitable practice and if the second one can get there, all of a sudden they have two good sources of revenue. But it’s failed and they have then decided to sell the second practice. What’s interesting is they had lots of advantages. The ability to share staff reduces cost, bulk ordering over 2+ practices etc. A new owner won’t have these luxuries to save cost either. As a departing warning, if a practice is being sold to you and only open 2-3 days a week. This may be seen as an opportunity by some. In most (but not all) cases, it’s actually open that much because that’s all the demand dictates. Not because the owner (illogically) decided to close and forego revenue. That just doesn’t make any sense. Be warned, post-Covid, many of these practices are likely to flood the market. The biggest mistake you can make is spending a large sum purchasing a practice like this. The big issue is you will likely earn less than you would as an associate because some of your earnings will go back into the business expenses and repayments and this may continue for a very long time. Infact, the practice May never become profitable. We do offer expert guidance in various areas of practice ownership. Please see the below link for more information. http://www.practiceownership.com.au/expert-guidance/

12.01.2022 Dr Nauv Kashyap was chosen as National Australia Bank’s health customer for their national advertising campaigns for 2021. Nauv regularly gets asked for a financier recommendation. Jason Savage has helped Nauv and many other dentists and doctors over the years. See below for Nauv’s journey. ... https://www.nab.com.au/busi/industry/healthcare/nauvs-story

12.01.2022 **- & ** The impact that Covid-19 will have on the dental practice sale market is uncertain. However, we are beginning to see activity in the market that provides us with greater clarity on how things may play out....Continue reading

12.01.2022 One aspect of practice purchase (or sale), that isn’t often considered is the leave entitlements for employees and their transfer to the new owner. There are quite a few aspects to this but it is important that you use a good commercial lawyer for a purchase transaction as there are a multitude of factors that need to be considered to protect your interests. We won’t goto into the specific legalities of this in this blog post. ...Continue reading

11.01.2022 Dr Nauv Kashyap, founder of Practice Ownership Consulting has used Jason Savage from Medfin for his financing needs for many years! Last night, Jason received the Outstanding Achiever Award at the ADIA award ceremony! Practice Ownership Consulting congratulates Jason! ... For all your financing needs, do not hesitate to get in touch with him!

10.01.2022 No gloves shortage here! Our container arrived this morning and is awaiting unloading. We have been importing our own gloves for years now and we also supply to dentists and specialists around Brisbane. Lots of people that bought masks enquired about other PPE. We have gloves available now for practices around Brisbane, Ipswich and Logan. We will consider Gold Coast practices too. Free delivery on orders of 5 cartons+. Each carton has 10 boxes of 100 gloves per box. ... Cost is $80 per carton ($8 per box) for Latex powder free gloves. All meet or exceed standard and are TGA listed. Unfortunately we can’t deliver around Australia very economically at all. For larger groups happy with large bulk orders around Brisbane, we will discount further. Also if any groups of practices anywhere in Australia are looking at getting together and having a container delivered to them, I can offer this option where I drop it straight to some facility of yours and you split up between practices. This will really save cost. They have a five year expiry. Edit: I’m looking at expanding our range of all PPE to include masks in the short to medium term. This is low risk for me to order in these quantities because of the usage across my own practices. This container for example, cost me $60,000. I never want the headaches I went through this time around trying to source PPE and for anyone that orders off us, I will be looking at providing some sort of security of supply to ensure we aren’t caught out if issues arise in the future. Please PM me for more info and orders locally.

09.01.2022 **The Sunken Cost Fallacy** The sunk cost fallacy is something that I see many people in business (including friends and clients) suffer from. It is a critical mistake we all make from time to time to a varying degree. What is the Sunken Cost fallacy? Simply put it’s when we keep pursuing something because of the past efforts we have put into that endeavor, despite it no longer being the best logical or rational decision. ... A few examples first: 1. You’ve booked a ticket to fly to an interstate destination but you find out your friends are doing a road trip. You love road trips and know you will have a great time with these friends but because you’ve already spent $350 on the non-refundable airfare, you decide to forego the road trip with your friends and fly instead, to the same destination. 2. You find you hate clinical dentistry. It makes your life miserable but you keep at it for the rest of your life just because you spent five years at dental school and don’t want that to goto waste. 3. You buy a practice that ends up being a dud and you keep struggling away at the practice and lose money compared to just selling up or closing shop and going to work for someone else. Something that will give you far more earnings and far fewer headaches. 4. If you’ve ever invested in a share and not sold just because your investment has dropped and you’re waiting for it to recover first, despite there being better opportunities to invest elsewhere, you’ve unfortunately fallen victim to the sunken cost fallacy. In poker, amateur and less experienced players constantly make poor decisions because of how much they have already invested into the pot. The effect of these decisions gives the pros a big edge when they play against amateurs Similarly, in business and practice ownership, you will constantly encounter decisions where past actions may cause you to make illogical or irrational decisions about the future. Whether it’s a staff member that has a poor attitude or just isn’t improving despite months of training and time investment or a project within your practice that you’ve spent lots of money and time on but isn’t coming to fruition, it’s important that you quickly accept these things as a sunk cost instead of dedicating more time and resources. That time, energy and money is better spent elsewhere so that you can maximize your return. To avoid this, the first thing is to critically examination a situation and understand if your thinking about it is falling into the trap of the sunken cost fallacy. By being aware of the sunken cost fallacy, hopefully it helps you to avoid falling victim to it. Comments, questions etc welcome!

09.01.2022 ** ... ?** My views on this have certainly evolved and I wanted to share some thoughts on this regarding business. Many of these thoughts apply to equally to poker. You will hear many people who you may consider successful, talk about trusting their guy or their intuition. They state that for big decisions they have had to make, they have gone with their gut and this has served them well. ...Continue reading

09.01.2022 https://www.optimahg.com.au/buy-vs-start-new-dental-practi/

06.01.2022 Business is changing. Dentistry is changing. What is the biggest challenge facing us in a post-covid world? I discuss my thoughts in my latest blog post. What are your thoughts?

05.01.2022 Live with Malak Fouda, Sahil Soni, Murray Orr and Nauveel Kashyap.

03.01.2022 Thanks to everyone that tuned into the live Webinar tonight. We hope there was lots of information that was useful to the greater audience. We would love to hear some feedback, so please write any comments or questions here. Have a great night.

03.01.2022 A short write-up by the team at BDO. Amazing service and specialist dental sector knowledge. Can’t recommend Bhupesh Kaphle and the team highly enough! https://www.bdo.com.au//case/practice-ownership-consulting

03.01.2022 Thank you to Michael McKay at HotDoc for this brilliant write up! For anyone looking at starting a dental practice, we hope this serves as an excellent starting resource! https://practices.hotdoc.com.au//how-to-start-a-dental-pr/

02.01.2022 ** ** Most associates will ponder this thought at some point in their working careers. The Covid-19 Pandemic has perhaps bought this thought to the forefront for many associates who may be at a crossroads. Below is a reworking of an article I have written in the past. Traditionally, practice ownership was a rite of passage for private practice dentists. They would work a few years honing their craft and practice owners...Continue reading