It was early 2006 and Chris Miller was contemplating an opportunity to purchase and operate his first dental clinic, the Chang Dental Clinic. Miller had been working as an associate since April 2003, and he believed it was time to run his own practice. Located in Petrolia, Ontario, Canada, the Chang Dental Clinic would provide Miller with an opportunity to hit the ground running in his own dental practice.
Taking over an established practice meant miller woouls not have to attract new patients, hire staff, purchase all the needed equipment, or do a wariety of other tasks needed to start a new practice. through discussions with stanley chang, the current owner of the Chang Dental Clinic, miller believed that chang's practice could be a proper fit, but miller still wanted to perform a thorough analysis of the chang dental clinic to ensure this was a good decision.
miller knew he could find $190,000 for this invesment through personl savings and loans from friends and family, but with a purchase price of $510,000, he would need more funding. since miller had no interest in taking on partners, this additional financing would have to come from a bank. miller had little past experience negotiating bank financing, so he wanted to assess the likelihood of obtaining the loan.
The dental industry in Ontario, there was a universal health-care system, meaning that a large number of medical treatment and procedures were paid for by the government and not the patient as long as the patient was aresident of the province of Ontario. The dental industry, on the other hand, did not operate in the same manner. Dental treatments and procedures, for the most part, were not covered by the government so patients paid for their dental work.