Beware of other practice brokers who offer “dual representation”, as it is impossible to represent the best interests of both the buyer and seller simultaneously. The team at ADS … This dental practice is successful and established in a charming city in Maryland. Once an ideal buyer has been located, the next step in the process is to agree on the terms of the purchase in a Letter of Intent (we provide our clients with a draft LOI), which should detail the proposed purchase price, intended closing date, assets included in the sale, and a list of contingencies that have to be met before the transition is completed. Provide draft contracts including the Letter of Intent and Asset Purchase Agreement. However, that is just the starting point. While it is important to understand the role of a practice broker and the importance of utilizing their services, it is also imperative that you hire the RIGHT broker to represent you in the sale and facilitate a smooth transition. You also will want to coordinate the announcement with the new owner to ensure that you both present an appropriate message. In doing so, you will gain valuable insight regarding the current value of your practice and the key factors that impact practice value and marketability. You bought that couch in the waiting room for $1,000, depreciated it over the last five years on your tax returns, and then valued it at $200 on your list of assets when you sold the practice. Dustin Hill is the former owner and publisher of a Midwest business journal and has been reporting on small business since 1992. Begin the planning process three to five years in advance of a transition. In addition to handling all of the responsibilities discussed above in a professional and efficient manner, here are a few additional reasons that McLerran & Associates is the premier dental practice brokerage firm in Texas: Our team has specialized in providing practice appraisal and transition services to Texas dentists since 1987. Identify and accomplish the seller’s goals for the transition – Every doctor and practice is unique so it is imperative for us to spend the time to understand the seller’s individual situation and goals and formulate a transition strategy to meet their needs. D&M Practice Sales and Leasing is an independently owned and operated Dental Practice Sales Brokerage that has served Southern and Central California since 1994. Considering these facts, many dentists will make the wise choice to entrust the responsibility of selling their practice to a professional who has the knowledge and experience to facilitate a successful transition … a dental practice broker. 4.4 × 0330 088 11 56 A A A. Make sure your staff is prepared to answer questions when patients come into the office. Dental Office – General Dentistry. Announce the sale to the general public. You will want to make sure employees, key customers and suppliers learn of the sale … Therefore, it’s important to ask yourself these questions before making the decision to sell: It is also worth mentioning that the emotional implications associated with the sale of your practice will increase once you accept an offer and begin navigating the closing process. Should a buyer determine that your practice is a good fit after reviewing the profile and visiting the office, a follow-up meeting will likely be arranged to allow both doctors to get to know each other. If you have questions regarding the transition process or would like to schedule a time to meet at your office to discuss your future plans and potential transition strategies, please don’t hesitate to contact us. PITFALLS TO AVOID WHEN SELLING A DENTAL PRACTICE By Ron Lebow, Esq. While market conditions remain favorable at the moment, we are expecting several changes to occur over the next few years that could have a significant impact on practice value. ), PPO credentialing, drafting a transition letter that will be mailed to active patients upon closing, and ensuring the lender receives all necessary documentation to fund the buyer’s loan on the closing date. Involve the new owner in all of the details of announcing the sale. Every contact between buyer, seller and broker, from initial discussion to closing, is an opportunity to lay the … This approach doesn’t cut it! Another advantage of beginning the process three to five years before a sale is the ability to address and correct issues that could have a negative impact on practice value, thus ensuring that you maximize the value of your practice upon the sale and position the future practice owner for success. When writing a news release announcing the sale of the business, keep it brief but be sure to include information on how a reporter can contact you for more details. If you deal with a large number of suppliers, a letter alone is appropriate. My PARAGON consultant was exceptionally helpful throughout the entire process. and determine what type of opportunity they are looking for. While some practice owners may be able to identify a buyer who is interested in purchasing their practice with little difficulty, getting from that point to the closing table is the most challenging component of a practice sale. Once you have determined that you are financially prepared to sell your practice, it’s time to move onto considering the emotional implications of the sale. In that situation, the doctor’s options are relatively limited in regards to the type of transition strategy they can utilize to sell their office. Upon agreeing on the terms of the sale, the next step in the process is for the buyer to secure financing. As practice brokers, we are often contacted by practice owners on the day they are ready to sell. Involvement in the Local Dental Community. H… That includes tangible assets like equipment, inventory, and possibly accounts receivable. Making the decision to sell your dental practice requires a great deal of thought regarding when and how you would like the transition of ownership to occur. This typically involves meeting the selling doctor, reviewing patient charts and practice reports, inspecting equipment, and consulting with an accountant to evaluate practice financials. I can not say enough about how excellent my experience was with the sale of my practice. In the sale of a dental practice, confidential information concerning patients, however, requires further protective steps. Since the buyer’s and seller’s financial interests are typically converse to one another, it is nearly impossible for the broker to fairly represent both parties under the dual representation arrangement. Dental practice buyers are typically much younger than sellers these days, and they are performing a wider range of procedures in-house rather than referring those procedures to specialists. This document should be specific to a dental transition and be a win-win agreement that protects both sides and discusses how common issues, such as accounts receivables and credit balances, will be handled after the sale occurs. Upon establishing the value/asking price, we will construct a comprehensive practice profile that will be utilized to confidentially market the practice to prospective buyers. Throughout this process, the staff and patients are typically unaware that the dental practice is being transitioned to a new doctor. In an asset sale of a medical practice, let’s say you, the seller, have made a list of all the furniture and fixtures that are part of the sale. Construct a detailed marketing profile and cash flow analysis for the seller’s practice – The marketing profile includes all of the pertinent information a potential buyer and their advisors will need in order to evaluate your practice. Ensuring that you both agree with the message is important. Because we place a high priority on developing meaningful relationships with potential buyers, we maintain a strong pipeline of qualified buyers and can immediately reach out numerous doctors who may be the right fit for your office immediately upon listing your practice. You will want to make sure employees, key customers and suppliers learn of the sale before the general public. The first step in this process is to collect all of the information we will need to complete a practice valuation/appraisal: practice reports, financials, office lease, equipment list, pictures, etc. Over the past few years, market conditions have been favorable for sellers, as there has been strong demand for dental practice acquisition opportunities coupled with a limited supply of sellers and lenders have been providing buyers with 100% financing at historically low-interest rates. Some states require formal legal notices to be published in newspapers, and may require specific statements to be made about how medical records will be kept confidential in the future. Write a short, straightforward press release that can be sent to newspapers, radio stations, television stations or online sites that cover business news in your area. FACT: A dentist will typically sell a dental practice only once during his or her professional career. Suppliers likely will have a different set of questions than patients, such as whether billing addresses have changed, which party is responsible for balances due, and whether there are any other management changes taking place at the practice. At McLerran & Associates, we play an active role in referring the buyer to several experienced dental lenders and helping position their loan request in a favorable light with each lender to enhance the probability of securing financing approval. Gather your employees and tell them of the sale. The most important document involved in a dental practice sale is the Asset Purchase Agreement, which serves as the legally binding document detailing the terms of the sale. You don't want employees to learn of the sale from people outside the business. Since 1974, California Practice Sales, Inc., has conducted thousands of dental practice appraisals in Southern California. When announcing the sale of a business, timing is important. Determining the market value of the practice, finding the right buyer, negotiating the purchase price, drafting the asset purchase agreement, formulating the transition plan, negotiating the lease assignment, and obtaining practice financing are just a few of the key areas where a potential practice sale can be derailed and the experience, expertise, and guidance of McLerran & Associates can prove to be invaluable. When announcing the sale of a business, timing is important. Henry Schein Professional Practice Transitions provides the comprehensive support you need to locate a dental practice for sale that fits your needs, budget and career goals. As the closing date approaches, our team at McLerran & Associates will work closely with the buyer and seller to ensure that all the details of the transition are completed prior to closing, including transferring/establishing service provider accounts (utilities, phone, etc. While the average sales price of a dental practice from a national perspective is approximately 65% of the most recent year’s revenue, there are a number of other factors that can influence value in either direction, including revenue trends, profitability, type of patient base, type of dentistry, location (urban vs. rural, high visibility vs. low visibility), quality and age of equipment, curb appeal, etc. Our professional dental brokers facilitate and assist in the purchase and sale of dental practices, as well as provide assistance in obtaining practice acquisition financing, locating and negotiating dental … To sell a dental practice, many brokers will simply list a description of your practice in various journals and on their website with the hope of coming across a buyer who is a good fit. It is important that a dental practice valuation is performed by an experienced professional to ensure it is thorough and accurate. Maryland – Established Periodontal Practice for Sale. There are countless ways to sell a dental practice. Buyers are especially interested in a fair answer to this question as … A full service transition firm staffed by industry experts. With so much at stake, you really need … This information will also provide you with sufficient time to develop a customized transition strategy to meet your individual needs, make changes to your office that will enhance value, and avoid mistakes that may negatively impact value. Announcing the sale of a dental practice -- or any business that deals with multiple members of the public -- takes planning and coordination. Each practice transition is unique and presents its own set of challenges to overcome during the transition process. This practice was opened in 2009 but the doctor is … Capitalized excess earnings 2. to help you navigate the process, protect/maximize the value of your practice, and ensure your transition is as smooth and successful as possible for all parties involved. Welcome to First Choice Practice Sales Inc. As previously mentioned, selling a dental practice is a complicated process which extends far beyond simply finding a buyer and closing on the sale. Selling a dental practice might be the single biggest decision of your professional career. Here are our primary responsibilities as your practice broker: As you can see, our team plays a vital role in the transition process. By exclusively representing the Seller, clearly disclosing this fact to the buyer, and assisting both parties in building a strong team of advisers, we have the ability to represent the seller’s best interest while ensuring the buyer has proper representation and is positioned for success following the purchase. It was a pleasure to have such a … It is important to consider the requirements of the lender when negotiating the lease term and to approach the landlord at the proper point in the transaction to protect confidentiality while not delaying the closing. Therefore, it is imperative to be educated about the process and employ the services of experienced professionals (McLerran & Associates, attorney, accountant, etc.) This involves understanding each lender’s unique underwriting requirements, presenting a comprehensive practice prospectus and cash flow analysis, and proactively addressing any potential red flags up front. Throughout this process, the buyer will also be completing their due diligence on the practice is an emotional of. Considerable monetary contributions to charitable dental organizations such as the Capital Area dental Foundation easy access to addresses. 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