Dr. A was a dentist in his mid-fifties who owned a very successful dental practice. His kids were grown and his home mortgage was paid, so now after practicing for twenty-five years, he wanted to try his hand in the real estate business. He had heard details of AFTCO's Career Alternative Program and decided that it was for him. We sold and merged his practice with another dentist in the same area. He continued to work his practice and was paid based on his production.
Planning... everyone keeps talking to you about planning for your future and you’ve barely enough time to take care of present issues. Who has time to plan for the future? Retirement? That's light years from now. After all, you’re young, why worry about the future when there are so many things to take care of now. Besides that, who is going to retire? You probably plan on working as long as your health holds out. You don’t need to plan on retirement because you’ll just keep on working right
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First of all, the practice may be selling for $800,000 and that is reasonable number for most purchasers to consider when starting out in practice...
The most widely used method for determining practice value is fair market value. The commonly accepted definition of fair market value is the price which a professional practice would produce, allowing reasonable time to find a purchaser, with both buyer and seller having access to full disclosure of information about each other.
Sell now or build to sell? Sell for present value or sell for future value? Commit now, but defer the actual sale until later? Take cash or fund your pension plan with the value of your practice? These are just a few important considerations for a dentist who is thinking and planning for the future.
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