Dental Office Application For Sale By Owner In Michigan
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FAQ
Answer: You are correct that in Michigan only licensed dentists can own a dental practice (i.e., a professional corporation or professional limited liability company in the business of providing dental services).
The Michigan Board of Dentistry consists of 19 voting members: 8 dentists, 2 dental specialists, 4 hygienists, 2 registered dental assistants, and 3 public members. The Board currently oversees the practice of approximately 7,830 dentists (1,095 dental specialists), 10,103 hygienists and 1,400 dental assistants.
Dental Professionals in Michigan are licences are under the regulation of licenses by the Michigan Department of Licensing and Regulatory Affairs (LARA) that oversees the licensing and regulation of more than 1.2 million individuals and entities on an annual basis.
Answer: You are correct that in Michigan only licensed dentists can own a dental practice (i.e., a professional corporation or professional limited liability company in the business of providing dental services).
If you are a foreign-educated dentist and wish to become licensed to practice in the United States, you should be aware that most states require a degree from a dental education program accredited by the American Dental Association Commission on Dental Accreditation (CODA).
Dental practices in the U.S. maintain profit margins typically between 30% and 40%, although margins vary depending on factors like location, services provided, and practice size. This aligns with the national median overhead rate of 61.9%, meaning practices generally retain around 38.1% as profit.
For those who do not work as an associate before buying their practice, the largest challenge is finding and managing staff. In this situation, you are new to practising yourself, so it is difficult to know exactly what type of staff you need and what types of people you work best with.
One of the most frequently referenced rules of thumb for dental practices is 0.6 to 0.8 times (0.6x to 0.8x) revenue. Other commonly cited rules of thumb include 1.0x to 2.0x net income, 3.0x to 4.0x EBIT (earnings before interest and taxes), and 3.0x to 4.0x EBITDA.
The target for an investment-grade practice is at minimum 20% EBITDA.