When researching any dental practice for sale in San Diego, it will always be wise to focus first on the fundamentals. Some sellers and brokers try to make special cases for the desirability of particular practices, but it will almost always be the underlying numbers that matter the most.
Visit the website of a brokerage that regularly lists dental practices, and it should be easy to find income statements to look into. Being able to quickly assess these with accuracy will make it much easier to highlight those practices that are most worth researching further.
An Income Statement Will Almost Always be Revealing
There is plenty of truth to the idea that each dental practice is unique thanks to its history, patient base, and other particulars. About buying a practice and running it profitably, though, the stark financial details will always be the primary concern.
When looking into a dental practice for sale in San Diego, simply paying close attention to recent income statements will normally be quite informative.Some of the line items that it will normally make the most sense to focus on include:
- Gross receipts: At the very top of any standard profit-and-loss statement for a dental practice will be a figure summing up the clinic’s gross income for the relevant year. While it will typically be desirable to delve more deeply into the contributing components of this number, simply having the overall tally in mind at the beginning will normally be enough.
- Wages and rent: In almost every case, the single largest expense for a dental practice will be the total of wages paid to hygienists, receptionists, and others. Rent will often be not far behind, with the sum of these two figures normally accounting for the vast majority of a practice’s expenses.
A Simple Way to Get a General Idea as to the Status of a Dental Practice
Simply looking into these figures will normally provide a fairly accurate idea as to the overall health and viability of a dental practice. Once some interesting practices have been discovered, it will then be productive to start looking much more deeply into the details.