From Student to Success: A Young Dentist’s Journey into Small Town Practice

In the second installment of real life stories in concurrence with our eBook, “Making the Case for Small-Market Dentistry,” we hear the story of two fourth-year dental students (let’s call them Sam and Pam) who visited a dental practice in Tennessee to investigate its sales potential. The county only had two dentists at the time, and although the dental practice was in the heart of town, the remote nature of the geographic area did not make it particularly attractive for younger dentists in the market. But there was more to the practice than met the eye.

An opportunity for young dentists to make their mark as practice owners

In a sad turn of events, one of the mainstay dentists who owned their own practice in the town became terminally ill. Sam and Pam found out about the opening and met with the dentist to learn more about the inner workings and characteristics of the practice, which collected around $500,000 annually. They were intrigued with the possibilities of taking the ownership route.

Solution: Buy-in representation and start-up consulting

Sam and Pam were four months away from graduation and considered driving back and forth to Tennessee to serve the dentist’s patients post-sale. They both lived in different towns and contemplated buying the practice together as co-owners; but after weighing all the factors, decided that Sam would buy the practice and Pam would separately start up a new practice in a different town. Sam and Pam remained friends.

After the original owner of the practice passed away, his wife decided to sell the practice to Sam for $30,000. Sam acquired a sizeable loan from his bank, which he spent on making renovations and technological advancements to the practice. During the due diligence period, Aprio’s Dental Team identified the potential increase in revenue if the use of space was improved, which resulted in Sam adding four additional operatories.

Outcome: A strong start to a dental career after graduation and a bright future ahead

Aprio’s Dental Team laid the groundwork for a thriving dental practice by providing guidance on buy-in representation, ownership transition, and strategic start-up planning.

For six years, Sam drove 70 miles each way to practice dentistry in the small-town practice he purchased. He grew the practice to $1 million in collections in just those few years. Since it was a long drive from his hometown to the dental practice, Sam’s wife encouraged him to start another dental practice in their hometown. After careful consideration, he decided to sell the Tennessee-based practice. In less than 10 years, the return on investment (ROI) was approximately 29% at the time — from buying it for $30,000 to selling it for roughly $900,000. Now, Sam is growing a new dental practice in his hometown.

What’s next?

If you are planning to begin your dental practice ownership journey, you may feel overwhelmed by the abundance of career opportunities available. Whether you have recently graduated or are about to graduate from dental school, Aprio’s Dental Advisors and CPAs can help you navigate every financial milestone in your professional life. We can help you start your dental career with confidence.

The future of your dental practice begins with Aprio.