September 20, 2021
Needless to say, the COVID-19 pandemic has affected just about every aspect of people’s lives, and the dental world is no exception. When it comes to buying a dental practice, things are different now, and being aware of what has changed will make your life significantly easier if you’re thinking about becoming an owner. How has COVID changed the way people buy dental practices? We’ve narrowed it down to the three biggest shifts that have occurred in the last year and a half.
1. Banks Are Still Lending, But…
They are looking at things a little differently when it comes to approving a practice loan. Like always, they want to know how much a practice is worth and how much a prospective buyer is producing, but another factor they are asking about is how a dental practice has bounced back since COVID. After being shut down for weeks or even months, many practices opened up and were able to resume business as normal. However, others ended up thriving and growing, while some have not ever fully recovered. Whether a practice is doing better or is still down since the pandemic started will have a big influence on the amount of the loan.
2. There Are More Sellers Than Ever
It’s no surprise to anyone that once COVID restrictions and lockdowns were put in place, many long-time dentists decided that it was time for an early retirement, so they quickly decided to sell their practices. As a result, there are more options for buyers than ever. In many ways, this is a great time to buy because dentists can now choose from a wide array of practices available all over the country. If you want to move from the big city to a more rural area or vice versa, then it should be easy to find a practice that fits your criteria.
3. There Are Also More Buyers Than Ever
The flipside of the previous point is that the market is now filled with a lot of associate dentists who are hoping to own. Seeing their hours cut due to COVID put pressure on them to take their career to the next level, so an unprecedented number of buyers are looking to snatch up practices. For individual buyers, this simply means they should expect competition when it comes to purchasing, and flexibility is key. Being willing to compromise a bit when it comes to the price of a practice can make life much easier for everyone, and often, any price increase will quickly be covered by profits within the first few months of ownership.
Overall, the dental practice market has never been more active, which means there are plenty of opportunities for people to get great deals on practices they’ll love. By being adaptable and expecting things to change, you should be well prepared for the purchasing process. Of course, you don’t have to go through it alone—the team at Next Level Consultants is ready to help make everything as easy as possible!
About Next Level Consultants
Our mission is to make the process of buying a dental practice simple and straightforward for dentists. Next Level Consultants is led by Mike Dinsio, a former banker who has helped hundreds of dentists successfully purchase practices, and Paula Quinn, an active hygienist, in-demand speaker/educator, and practice owner. To learn more about purchasing a practice during COVID times and take advantage of shifts in the market, contact us today.