By Philip Kempler, DMD, Broker
The Importance of Interest Rates
Since I sold my dental practice in 1992 and became a Dental Practice Broker, the value of dental practices have had several ups and downs. The market hit bottom in 1997, when we saw many practices being sold for as low as 50% of one year’s gross collections. Fortunately, 1998 saw a slight upturn which continued through 1999. This was primarily due to low interest rates and the emergence of several dental finance companies which made money available to dentists for practice acquisition. The low rates allowed the selling dentist to command a higher price for his practice since the Buyer’s loan payments would be lower. There are several Dental Lenders now in the marketplace who are all competitive such as Bank of America, Wells Fargo, Lendeavor and Home Street Bank. Call and we can give you the scoop.