AFTCO

Ask the Dental Practice Transition Experts

Recent Posts

Filter Posts



I am considering buying a general dental practice where the lab expenses are only 4% of collections. What should laboratory expenses be?

Laboratory expenses should be approximately 8% of annual gross collections for an average, but well-run, fee-for-service general dental practice. A low percentage such as the 4% of annual gross revenues you asked about indicates that this seller probably has so many active patients in this practice that he is working too hard just to keep up with this high patient count and he does not take the time to offer more comprehensive services to those patients. This type of practice would be considered a "Diamond in the Rough" and would be considered a great buy if it is located in an area that you find desireable. There will be a lot of work that can be done in this practice (as a rule) for the purchaser with good case presentation skills.

On the other extreme, if you are looking at a general dental practice with laboratory expenses in the 10% to 12% range, you are most likely dealing with a lower active patient count whereby most (if not all) of the comprehensive dentisry has already been completed on those patients. This is usually a beautiful office and is visually desirable and located in a high-end demographic market, but you should approach this practice with great caution. It might be a good buy for a prosthodontist or someone who has completed some Panky or LVI courses, but the doctor taking over a practice like this will need extraordinary clinical and case presentation skills in order to make a living.

So remember, the lower the laboratory percentage, the greater the opportunity is as a practice acquisition; the higher the laboratory percentage, the greater the clinical and case presentation skills will be needed by the purchaser. This is just one of many considerations to review when considering acquiring a general dental practice. See Less

Don't see the answer to your question?

Ask us your question!

Client Testimonials

"I am pleased with AFTCO's services and would recommend anyone considering selling their practice to speak with my AFTCO Analyst."

Michelle Morrow, D.M.D.
Dawsonville, GA

"My AFTCO Analyst was available, attentive and professional from the first contact to the close of the sale. Everything went very smoothly and my AFTCO Analyst made it happen for us!"

Guy C. Rosser, D.D.S.
Abilene, TX

"My AFTCO analyst was a consummate professional throughout our transaction. I appreciate his knowledge and insight with dental practice sale. Buying this practice has been a great decision for my professional career. The transition has gone very smoothly."

Nathan F. Thompson, D.M.D.
Louisville, KY

"I had a great experience with AFTCO and my analyst. She walked me through each step and was very helpful in explaining the whole process. I highly recommend AFTCO, especially for first time owners."

Mohammadreza Nabavi, D.D.S.
Columbia, MD