Client Case Study Major Smiles | Murfreesboro, TN
The following case study highlights one of many ways we deliver superior results to our clients through expert representation. While healthcare real estate presents unique challenges to each practice owner; at CARR, we strive to find solutions that provide maximum benefits to our clients.
As an associate dentist looking at moving towards practice ownership opportunities, Dr. Charles Major was unsure whether a practice acquisition or a start-up practice was the best decision for him. Dr. Major recognized that practice ownership would provide him the opportunity to create more control, income and independence, yet was seeking professional guidance to assist him with the option that better prepared him for the most enjoyable and fulfilling career possible. In doing so, Dr. Major consulted with CARR to determine the best path forward.
We took Dr. Major to the market to discover and uncover all viable options for his practice. We explored lease and purchase opportunities, practices for sale in the market, as well as land options for ground up construction. Our team performed site selection reviews and presented Dr. Major and his CPA with a high-level Lease vs. Purchase analysis. Upon review by he and his team of financial advisors, we all felt confident that the best decision for the future of his practice and his long-term wealth building strategy was to purchase land and build his dream practice from scratch.
Purchasing land for ground-up construction (a design-build project) is a decision that is rarely made by any Dental professional entertaining a start-up. However, we were able to find, negotiate and secure land at a price point that would also keep Dr. Major within the year 1 budget provided by his practice finance lender. Because of this, we chose to negotiate a lease with an option to purchase contract that allowed Dr. Major to stay within his annual rent budget, while providing him the opportunity and pathway to ownership within a few short years of practicing. Another added benefit was that Dr. Major was able to increase his desired footprint from 2,400sf with a max of 6 operatories to 3,200sf that includes 8 fully built out operatories along with a very comfortable and roomy staff break room and reception area. This increase in footprint will also increase his production numbers tremendously.
Dentists looking at start-up opportunities do not typically move towards practice ownership in this way. Most do not believe that they have the luxury of considering owning their real estate unless they go down the path of acquisition or leasing a space for 10-15 years before entertaining real estate ownership opportunities that can create wealth and increase net worth by 7 figures. However, after performing a thorough evaluation of the numbers, working alongside Dr. Major’s team of advisors, and vetting all available opportunities in Dr. Major’s target market, in the end it made the most sense for him to launch his practice through a land purchase upon which he has now built the practice of his dreams… as a start-up. Congrats, Dr. Major!
“Without CARR I don’t know where I would be today. From our very first meeting, CARR was always honest and listened to my goals. Thanks to CARR I am in my dream office and loving practicing dentistry EVERY DAY!”
Charles Major, DMDMajor Smiles