Two years ago two doctors (Drs. A and B) had similar problems, and that was that their dental practices were not busy enough! They wanted to increase their practice productivity in their current office to maximize the advantages of “Economy of Scale” (additional production in the existing facility).

Both doctors were offered the opportunity to purchase a dental practice in their practice area and merge it into their existing facility. Dr. A understood that the real value in purchasing and merging a practice lies with increasing the current patient base thereby increasing production and practice profitability.

Dr. B could only complain that the purchase price for the practice opportunity was too high as far as he was concerned and wanted to negotiate the purchase price.

Dr. A understood that the economic benefits provided by a practice merger far outweighed any purchase price issues so Dr. A bought and merged the practice into his facility. Dr. A now had twice as many patients in his practice and his practice revenues and profits increased dramatically from the first day.

Dr. B decided not to buy the practice that was offered to him. He was not going to pay anyone for a practice without negotiating a better price even if the price was already fair (the price was for an amount that Dr. B would no doubt demand for his own practice someday when he decided to sell).

Dr. A’s practice is now very busy; he has more patients than ever. Dr. A has added an associate to his practice and is now enjoying some passive income resulting from the associate's production. Dr. A is also taking more vacation time since the associate is in the office working while Dr. A is out. Dr. A’s Quality of Life has improved considerably.

Dr. B, on the other hand, still complains about his busyness problem and wants to grow his practice and make it more profitable, but unfortunately, Dr. B continues to earn about the same amount of money this year as he did last year, and he does not see any change for the future.

Dr. A almost doubled his income following the practice merger and is today looking to buy another practice in another area and try merging more practices in that office. Dr. A believes that he can make a high six figure, mostly passive income, through practice mergers and loves being in the dental business.

Dr. B continues to complain about finances and wonders why things do not seem to get better.

Are you a Dr. A or a Dr. B? Call AFTCO today to see what AFTCO can do to help you reach your financial and “Quality of Life” goals. Call AFTCO at 800-232-3826 or visit our website at www.AFTCO.net.

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