Brady Frank, DDS
Editor’s note: The first part of this series appeared in the October 2017 issue of Dental Economics. Find it on DentalEconomics.com by searching for “DDSO.”
I am excited to jump into the second part of this series and lay out some actionable steps that will lead to debt elimination, increased cash flow, wealth accumulation, and increased income-producing assets. These concepts are generally simple. They involve acquiring practice assets at wholesale and building them into valuable assets. After an asset has increased in value, the equity is converted to debt reduction or cash; this is called equity harvesting. Therefore, we are finding and adding value through what I call value-added practice acquisition opportunities.
I am a firm believer that most private-practice dentists have one of two goals: owning a practice or being an owner in a small group of growing practices. Truly understanding this fact will allow you to create the most desirable situation for your practice’s business model moving forward. Many dentists tightly grip the ownership or equity component of their practices, unknowingly smothering the practice’s growth potential and their own personal financial futures. With specialized knowledge, you can create ownership opportunities within your practice without losing control or diluting your financial position.
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