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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

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Client Testimonials

"AFTCO made the difficult process of selling my practice very simple, and helped me in every phase along the way. My AFTCO Analysts were very nice to work with, were as attentive as could be, and always available to discuss any hiccups along the way. They made everything very simple for me, in other words, THEY did all the work, and this was a BIG bonus for me, as other companies wanted ME to do all the work, and pay them to evaluate my practice. Overall, I would gladly, and enthusiastically recommend anyone I know to work with AFTCO on buying or selling a practice."

George F. Kirkland III, D.D.S.
Durham, NC

"My AFTCO Analyst was very helpful to work with. This was my first purchase of a dental practice and he walked me through the process step by step. He was very knowledgeable about what needed to be done and the sale went smoothly. All the help I received from him during this process was well worth the small fee to me as the buyer. I would have spent far more on a private broker to help with the sale. Overall working with AFTCO made this stressful process much more manageable."

Benjamin L. Byrd, D.D.S.
Kellogg, ID

"My AFTCO Analyst and I grew a relationship over several meetings. He gained the trust of my wife and myself over this time. He really took the time and energy to get to know me, my personality, my abilities and goals. Using this, he brought me information on practices that he thought would be a good fit. I really appreciate his diligence and dedication to me throughout the process."

Chapin Densmore, D.D.S.
Kirkland, WA

"Great service with a great Analyst. There were no surprises and everything that My AFTCO Analyst did went exactly as planned. I highly recommend AFTCO."

Carl D. Bilancione, D.M.D.
Winter Park, FL