Volume 7 • 2020 • Issue 6

Ask yourself: What do people need and what service can I provide? That's your opportunity. Q Any advice for those of us whowant to get jobs as associates when we graduate? PAJ: It might be a little bit tough right off the bat because it might not be top of mind for practice owners while they're sorting out new protocols and the many other unknowns. There is pent up demand for dentistry, but we are likely at the beginning of an economic recession. Keep in mind though: this is just a short phase in a career that will last 40 plus years. BD: I agree with Dr. Jones about dentists who are practice owners. But don't lose sight of the dental service organizations, the larger groups of practice owners. Their business model is absolutely dependent on recruiting new associates. Their business model does not work if they can’t do that. JT: Some of you may have already secured a job as an associate and you’re concerned about work being slow as far as clinical hands-on work. But there is a lot to be gained by observing the operation of a practice. It is common in dentistry to get so busy that you don’t have time to learn everything that you want to know about practice management. I would highly recommend that you learn as much as you can about these aspects during this time. Q How do you think COVID-19 will affect those whose ultimate goal is to become a practice owner? BD: For a long time, we’ve had an imbalance in the market for buying dental practices. There are many more buyers than sellers and this continues to be true. An economic downturn will likely affect the retirement plans of dentists who may, consequently, be less likely to put their practices on the market. The number of practices for sale may actually go down. Decreased productivity and higher expenses may cause the cost of practices to go down. Maybe. I don’t have a crystal ball. Practices are bought on the basis of their profitability multiple. Which is: how many times the practice’s yearly bottom line will a buyer spend to buy a practice? Nationally, the price range is 5 to 7 times the yearly bottom line, after you pay the dentist. This will likely not change much, but if the bottom line goes down, prices may go down. JM: Looking back at my experience and that of my colleagues, dentists do not typically buy a practice immediately after graduation. You can take your time. Most dentists who want to be practice owners wait 3 to 5 years. And there is a lot you can do in that time to make yourself ready for ownership. You can build a business skill set. You can build solid relationships with patients and other dentists that will help you develop necessary skills and acquire tools as a practice owner. BD: And on an encouraging note, as you can imagine, many of those first-time buyers, 3 to 5 years out from graduation, still have student debt. The banks have no trouble financing them to make practice purchases, even with student debt, because as you heard, that’s good debt and dentists get the best bank financing available from Canadian banks. JM: I feel that COVID-19 is a great equalizer in dentistry. We are all learning about the virus at the same time. Experienced clinicians and students alike are both beginners in this new situation. We are all working to figure out what works in this new context. We have an opportunity now to consider what the future might offer us and what we can offer in the future. The views expressed are those of the panelists and do not necessarily reflect the opinions or official policies of the Canadian Dental Association. For more early career advice from a range of experts, visit: dentalcareeroptions.ca I ssues and P eople