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Group Case: Parsa Dental Clinic In early 2 0 2 0 , Parsa, a den / st , and his wife, Asia, a digital marke
Group Case: Parsa Dental Clinic
In early Parsa, a denst and his wife, Asia, a digital markeng specialist, relocated to
Vancouver, BC Shortly aCer the move, Asia, a digital markeng specialist, obtained a fullme
job with a private company at Burnaby. Parsa, a denst obtained his denstry degree from the
university of his home country several years ago. He has recently spent a lot of me studying
for the reciprocity examinaon administered by the Canadian Naonal Dental Examining Board
NDEB enabling him to pracce denstry in Canada. Last summer, Parsa passed all exams. He
has now approached you as a financial advisor and seek advice on establishing his dental
pracce
It is October st You are meeng with Parsa and Asia to discuss their plans.
Parsa: Thank you for your assistance. Now that I am licensed to pracce in Canada, BC province,
we aim to establish my dental pracce as soon as possible, hopefully by the beginning of
Asia: I plan to assist Parsa with the administrave side, leveraging my prior experience. My
income as a digital marketer covers our basic living expenses, excluding future mortgage
payments. However, we intend to buy a house in North Vancouver, taking on a substanal
mortgage. Parsas BC dental cerficaon allows us a $ million loan for any type of house. Our
goal is to pay it off quickly to save for our rerement We turned this year, and both plans to
rere by promong our desire to start planning and saving promptly.
Parsa: A colleague connected us with an agent in Vancouver helping rering densts sell their
pracces The agent has already found a suitable pracce Dr Daniel Paredes pracce located
in North Vancouver and he currently runs it
The agent has given us two years of financial statements for Dr Paredess pracce as well as
highlights of the business Exhibits I We have some savings set aside, and the agent has
indicated that Dr Paredes is willing to offer $ purchase price. I made some notes from
our discussion with the agent Exhibit II and some notes from my personal research Exhibit III
Asia: I prefer Parsa set up his own pracce and build up his client base. Parsa already spoke
with one of the local densts in North Vancouver who helped mentor him through the NDEB
exams, and he gave us some esmates of how much it would cost to start our own pracce
Exhibit IV
Alternavely Parsa could work as a dental associate in other clinics. I searched and found that
average annul salary for a dental associate is $
Group Case: Parsa Dental Clinic
Parsa: I have a specializaon in implant and surgery denstry an area of increasing paent
demand. If I have my own pracce I would like to offer these services to my paents My
esmaon is of gross margin on implant and surgery services.
Asia: Ive heard that professionals these days incorporate to take advantage of lower tax rates.
Average tax rate for small corporaon is about in BC How should we set up the pracce to
generate the best tax savings? What are other benefits of incorporang the business?
Parsa: The agent wants us to decide about Dr Paredess pracce by monthend. Can you please
help us understand our opons, and provide a recommendaon What are advantageous or
disadvantageous of each opon
If we start our own pracce could you please tell us what would be our sales and paents
numbers at the Break even point? Could you prepare a cash flow projecon for both scenarios
over the next years?
Asia: Our plan is to be rered in years. We would like to pay off the clinic and house
mortgages by then, ensuring financial security for at least more years with an annual
expense of $ If we plan to sell the pracce for $ million in years, what should be our
rerement saving?
Please let us know if there are any extra common business ideas that you believe they could be
beneficial for us and our new business.Group Case: Parsa Dental Clinic
In early Parsa, a denst and his wife, Asia, a digital markeng specialist, relocated to
Vancouver, BC Shortly aCer the move, Asia, a digital markeng specialist, obtained a fullme
job with a private company at Burnaby. Parsa, a denst obtained his denstry degree from the
university of his home country several years ago. He has recently spent a lot of me studying
for the reciprocity examinaon administered by the Canadian Naonal Dental Examining Board
NDEB enabling him to pracce denstry in Canada. Last summer, Parsa passed all exams. He
has now approached you as a financial advisor and seek advice on establishing his dental
pracce
It is October st You are meeng with Parsa and Asia to discuss their plans.
Parsa: Thank you for your assistance. Now that I am licensed to pracce in Canada, BC province,
we aim to establish my dental pracce as soon as possible, hopefully by the beginning of
Asia: I plan to assist Parsa with the administrave side, leveraging my
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