In California, dental practices are placed on the market when the owner is relocating or retiring. These circumstances may determine the terms of the sale and what is included in the transaction. The following are frequently asked questions about a dental practice for sale in California.
How Can the Purchase of an Existing Practice Help the Buyer Save Money Initially?
If the sale includes everything in the practice, the buyer will save money on most initial costs. However, the equipment and fixtures in the practice must comply with federal laws. They must be in excellent condition and should not pose any risks to the patients. They will save on initial startup costs required to open their own practice if the sale provides the new owner with everything they need to open immediately.
Does the Current Patient Base Come with the Practice?
It depends on whether or not the dentist is retiring or moving to a location that is in the same city. Typically, the patient base is included in the sale when the owner will no longer practice or is moving to a distant location. If the patients can travel a short distance to see the current owner for dental care, the patient base isn’t included in the sale.
Is a Business Loan Required to Purchase a Dental Practice?
Typically, the new owner could use a mortgage to purchase the property. However, certain restrictions may apply under some circumstances. If the state laws require a business loan, the buyer will need to provide detailed information about the practice in a business plan to gain approval from their lender.
What Type of Insurance Does the Buyer Need to Purchase?
They will need commercial property insurance, worker’s compensation, global or general liability, and benefit options for workers. They will also need flood insurance if the property is in a flood zone.
In California, the purchase of a dental practice may involve certain restrictions. These restrictions may include verification of a valid dental license and specific loan requirements. Buyers interested in purchasing a dental practice for sale in California can click here for further details.