Your personal and professional circumstances play a crucial role when making the decision to buy a dental practice. If you are financially prepared, have the necessary experience, and feel ready to own a dental practice, waiting might only introduce unnecessary delays in your career progression.
According to a survey by the American Dental Association (ADA), the annual net income in 2020 in the dental field was $203,010. Non-solo practice owners earned an average of $280,190, and solo owners earned $225,800.
Steady Interest Rates
Interest rates influence the cost of borrowing money. While interest rates for a loan to buy a dental practice are still up, they are reasonable and likely will stay steady for a while. Delaying the decision could mean facing higher interest rates in the future, increasing the overall cost of the investment.
The three most common types of loans you can take out to buy a dental practice include a conventional practice loan, a real estate loan, or an SBA real estate loan.
Practice Growth Potential
The one thing that the pandemic has taught us is that dentistry is COVID-proof. The dental industry is evolving, and certain practices may present unique growth opportunities. Waiting too long to purchase one might mean missing out on a practice with significant growth potential.
We are not saying you should walk in blind. Assess the current and future growth prospects of the practices you are considering and weigh them against the risks of waiting before making a decision.
Owning a dental practice allows you to build equity in a tangible asset. The sooner you acquire a practice, the sooner you can start building equity and benefit from its appreciation over time. As an associate, you might not get to save even a single dollar for your retirement.
Economic conditions impact the overall stability of the business environment. If the economy is stable, it may be the right time to buy a dental practice.
If you are looking for a dental broker in Washington, contact CTC Associates for help in buying a dental practice. They will assist you by determining the market value of your options so you can negotiate the purchase. Browse their current listings and fill out the buyer’s application to get started. For more information, call 509-606-1559.