I live in Southern California, and one of the dental practice brokers in the area is Bette Robin. I have not used, nor do I endorse her services; however, she recently released a podcast and this particular episode with Matt Christie of Bank of America is worth listening to.
Dr. Paul Goodman and other dentists familiar with the associate market have highlighted that compensation for associates has been stagnant over the last two decades despite an increased cost of living and an increased cost of tuition. This means that most young dentists with large student loans need to pursue ownership sooner rather than later.
If you are not familiar with associate compensation, what I am saying is that if you graduated in 2000, you could have expected to exit school and find a position as an associate with a base pay of $500 per day. If you graduated in 2018, you can expect to find a position as an associate with the same base pay of $500 per day. Never-the-less, the cost of living in 2018 is significantly more than the year 2000, reimbursement for dental procedures from third party payers has not increased, and the amount of debt young dentists have found them saddled with is often beyond 2 or 3 times the class of 2000. This puts a lot of pressure on young dentists to find a job where they can produce enough to service their loans, save for retirement, and provide a reasonable lifestyle for their families.
The discussion between Bette and Matt centers around obtaining financing for an acquisition or startup. Bank of America and Wells Fargo have dental specific departments, and Bank of America is the largest dental lender. As a young dentist, you should be familiar with BofA and the services they provide and this podcast highlights what they are looking for in a borrower.
We will add this podcast and other ones worth listing to to our resources page: https://practicepirate.com/resources
If you have heard a podcast episode that was particularly insightful, please let me know about it by sending me a message via the contact form.