Should I take on a partner, or just hire an associate for my dental practice?

Ask The Experts - Providing insight for commonly asked transition-related questions

Today's topic: Should I take on a partner, or just hire an associate for my dental practice?

Ultimately, our advice and your eventual decision depends on various factors that are specific to your circumstances and goals.

Here are a few points to consider:

1. Ownership timeline: How long you intend to continue practicing. Do you envision working for several more years while expanding and/or growing the practice, or are you more interested in maintaining sole ownership and control with a sale in the immediate future?
2. Financial implications. Taking on a partner means sharing ownership, profits, and expenses, whereas an associate would be an employee on a percentage of collections arrangement. Assess your financial situation, including the potential costs and benefits of each option.
3. Workload and responsibilities. Determine whether you would benefit from sharing the workload and responsibilities of running the practice. A partner can contribute to management tasks, marketing efforts and overall practice growth. Alternatively, an associate can help alleviate your patient load and allow for more work-life balance.
4. Skill set and expertise. Consider your own strengths and weaknesses, and identify areas where you may benefit from additional expertise. A partner can bring complimentary skills and knowledge to the table, whereas an associate May primarily provide additional clinical support.
5. Compatibility and trust. In a partnership, it's crucial to find someone who shares your values, work ethic, and vision for the practice. Trust and effective communication are vital for a successful partnership. Whereas, with an associate, you'll need to focus on finding a reliable and skilled professional who fits well within your practice culture.
6. Effect on future sale. If you are contemplating a sale to a Dental Service Organization, bringing in a younger partner may limit your ability to sell to a DSO, whereas hiring an associate may increase the desirability of your practice.
7. Legal and contractual considerations. Consult with professionals who specialize in dental practice sales, as well as partnership agreements and/or associate contracts, to understand the legal implications, costs, and requirements for forming a partnership or hiring an associate.

It is advisable to seek guidance from professionals, like attorneys, accountants, and dental practice consultants, who can provide personalized advice based on your specific circumstances, allowing you to make an informed decision on which path to travel.

Thanks for watching. For additional information on this topic or any other transition related questions, contact us at 877.365.6786.