Dental partnerships sometimes get a bad rap. Almost every dentist knows someone who has been in a partnership that ultimately failed for some reason, leading many to overlook or dismiss what can be a very lucrative and fulfilling business model. For every failed partnership, there is a long-standing, harmonious partnership that provides its owners with numerous benefits, both quantitative and qualitative. It is due to these benefits and many recent industry trends that we have seen a steep increase in the number of partnerships. In this presentation, we will discuss the pros and cons of this sometimes polarizing business model and will explore ways that doctors considering this path can achieve success by avoiding common pitfalls.
After this lecture, you will be able to:
Discuss the reasons that partnerships are a growing trend, and why more and more doctors are choosing this pathway for their transition over a full sale of the entire practice.
Identify the qualitative issues that sellers should consider before pursuing a partnership, such as facility and capacity issues, how long should your buyer work as an associate, what percentage of the practice should be sold, etc.
Outline the steps that are necessary, and identify the financial terms that must be addressed in order to achieve a successful partnership including the amount of income growth necessary to sustain multiple doctors, sale structure and the resulting tax implications for each party, the allocation of income and expenses between partners, etc.