Dental practice owners should consider several factors when deciding whether to add a partner or hire an associate, including finances, workload and legalities.
Choice Transitions, a brokerage firm specializing in dental practice sales, recently listed seven factors owners should consider before making this decision:
1. Ownership timeline: Dentist owners should consider how long they intend to continue practicing.
2. Financial implications: Dentist owners need to weigh the potential costs and benefits of each option.
3. Workload and responsibilities: Dentist owners should determine whether they would benefit from sharing the responsibilities of running the practice.
4. Skill set and expertise: Dentist owners should consider their strengths and weaknesses and identify areas where they may need additional expertise.
5. Compatibility and trust: Dentist owners should find someone who shares the same values, work ethic and vision for the practice.
6. Effect on future sale: Adding a younger partner may limit an owner's ability to sell their practice to a DSO. However, hiring an associate may increase the desirability of their practice.
7. Legal and contractual considerations: Dentist owners should understand the legal implications, costs and requirements of forming a partnership or hiring an associate.