How recent dental school graduates can acquire a practice soon after graduationRecent graduates, your practice ownership dreams are closer than you think.
Editor’s note: To keep our customer’s information safe, we used a pseudonym throughout this blog.
During the 2020–21 academic year, 6,609 dental students graduated — an increase from 6,350 in 2019 — according to the American Dental Association. Many recent dental graduates go on to continue their education, work under a mentor, or take time off. But others want to get started right away with owning their own practice.
At Provide, we make it easy for recently graduated healthcare providers to acquire a practice.
Dr. Gale Barnett reached out to us in 2019 after graduating from the University of Tennessee, College of Dentistry in 2015 and completing a year of general dental residency at the University of Alabama in 2016. He already knew the practice he wanted to purchase, but as a first-time owner, he needed a team of people with excellent knowledge to help him better understand what his options were.
After pre-qualifying and receiving financing approval, Dr. Barnett worked with our Outside Sales and Inside Sales team members Johnette Green and Jessica Ruggieri. Credit Team Lead Natalie Howard worked on the underwriting, and Closing Officer Amy Christian and Closing Team Lead Mary Merrill finished off the completion of the deal.
“We were able to maintain the same group of people throughout the deal for Dr. Barnett, and he appreciated that a lot,” Merrill said. “That personal approach drew him to us in the first place, and the fact that we stay with our doctors throughout the process puts them at ease.”
Provide didn’t only help Dr. Barnett with acquiring his practice. With a stellar skill set in advanced oral surgery, implants, sedation dentistry, cosmetics, and caring for patients with complex medical histories, he needed the right technology and equipment to help his patients. He applied for two equipment loans through us and quickly was approved.
Due to that long-term investment, Dr. Barnett’s practice grew 26% in revenue in his first two years of acquisition. What made his growth even more remarkable to Provide was that he succeeded during the height of the pandemic, where the team typically saw a 10% drop in 2020 throughout the dental practice industry.
“We saw Dr. Barnett’s potential and had the confidence that he’d be able to do it, and he did,” Green said.
“I also think it speaks to Dr. Barnett’s skill and his strength in this particular practice,” Howard said.
So what does Provide look for in recent dental graduates looking to acquire a practice?
- Production capability — It must match the practice they’re looking to buy so we can carefully predict they can afford the new loan.
- Income increases as an owner — We want to make sure their prospective practice is stable and they have goals in mind. They never want to be satisfied remaining stagnant.
- Good credit — We want a borrower who can be more conservative by making good financial decisions for themselves and paying their bills on time.
- A well-chosen practice — We’d like to know if the practice they choose has stable revenues in general so we can depend on that income moving forward.
We understand that for first-time owners it can be a little nerve-wracking in the beginning, but that’s why Provide equips you with a team of dedicated experts who can guide you toward building the practice of your dreams — experts like Dr. Barnett’s team. Your success is the ultimate goal for us.
“We’re always ready and willing to help our doctors, which is why we make ourselves openly available through text, call, or email so that line of communication remains open,” Merrill said. “These doctors are making a huge investment in themselves, and we’re investing in them, as well. It’s the best way we can all get the greatest outcome.”
This content is for informational purposes and it does not constitute the rendering of legal, accounting, tax, or investment advice or other professional services by Provide or any of its subsidiaries or affiliates, and it is being provided without any warranty whatsoever. Please consult with appropriate professionals related to your individual circumstances.
All lending is subject to review and approval. Provide, Inc. is a wholly owned subsidiary of Fifth Third Bank, National Association.