Strong offers do not necessarily mean that the buyer has offered asking price. Buyers are in a much better position to negotiate when they make an offer with the following:
- CV or resume that outlines prior experience and education
- Letters of reference from previous employers of educators
- A Pre-approval form from a bank
The more information the seller has about the buyer the stronger the offer. Keep in mind that a seller is looking not only for money transaction but also for someone to take care of the patients and staff that he has worked with for several decades in many situations.
A fair offer is one that creates a win-win scenario for both the buyer and the seller and compares well with the current market.
A Low Ball offers in many cases do more harm than good. If it is the goal of the buyer to work with the seller to properly transition the staff and patients it is in your best interest not to damage the negotiations with Low Ball offers. We have found in many cases that the sellers are very protective of their life’s work and Low Ball offers send a message to the seller that you do not value the time and effort that he has spent building a practice.
When the seller accepts the letter of intent, the practice has been taken off the market and it is wise to move quickly to remove contingencies so that the seller can be assured that he is not missing other offers from other buyers in the market place.
Did you like this article? Check out our other dental industry blog posts such as retaining patients after the purchase of a dental practice and do I need a help buying or selling a dental practice?
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