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Purchasing A Dental Practice – Financial Planning Case Study

Steve had seen my profile online and came to see me to help him build a property portfolio. He had already invested in two properties, and believed this was the best strategy to build wealth quickly.

However, as I have seen with many other clients, this strategy has a lot of flaws. Unfortunately, it is still heavily recommended by prominent medical advisory groups despite the many issues.

The main problems I have seen clients experience:

– lack of liquidity (there are times when property is hard to sell, no matter how good it might be);

– lack of certainty around value (it is only worth what someone is willing to pay, despite what the official valuation might be);

– low income returns for residential property (it is impractical to retire on residential property as the net return is 1-2%).

When I shared these thoughts with Steve, it became obvious to him that property investing wasn’t perhaps the ‘holy grail’ for him.

We started talking about how he was a successful dentist, and how he had some prior business and management experience. The focus quickly turned to how he could get himself in a position to purchase a dental practice. This got him excited!

With his experience and skills, he realised this would be a far better investment than any traditional type of asset (property, shares). One where he could control and drive the outcome and returns.

We connected him with a medical business broker, specialist accountant and also finance provider.

It wasn’t long before Steve had found the practice he wanted; one which was underperforming and which he could turn into a thriving dental practice.

We organised the required key-man insurance and were involved with the discussions between his accountant, finance people and lawyer, to provide him with additional insights.

Within less than 12 months Steve has significantly increased the revenue and profitability of the practice, and the attention has now turned to personal lifestyle planning and wealth creation. We also work closely with the accountant to optimise tax planning.

In those first 12 months we also organised personal insurances (with full rebate of commissions) and estate planning (including all the business entities).

We devised and implemented an investment strategy, as the fund was completely sitting in cash, despite the Steve and his wife’s young age.

Those initial discussions and goal discovery set the clients on the right path, one they are excited about, one where they can drive and control the outcomes.

Imagine if we had taken on face value what they initially had in mind. Their future would have looked vastly different!

If you are a doctor or dentist and would like to receive financial advice that is tailored to your circumstances, and work with an adviser that thinks outside the box to get the best results for you, then contact me on 0432 885 295 or

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