Selling a dental practice is a lot like filling a tooth. To many patients, a tooth filling seems like a quick, easy, and uncomplicated process, but dentists know it’s not so simple. The process of brokering a deal to sell a dental practice is much the same —it’s more complicated than it looks to the untrained eye. If you’re ready to sell your dental practice, don’t do it alone! You need an experienced practice broker on your side to help navigate this important and life changing decision. Dentists are experts at providing outstanding dental care, while dental practice brokers are experts at selling and transitioning practices. The following are just a few advantages of having a dental practice broker help you through the selling process.
It’s important that your patients and staff learn about the sale of your practice from you, and not through rumors or the idle chatter of an interested buyer. Dental brokers protect your identity and ensure your privacy through anonymous listings that don’t give away the name of your practice or its exact location. This confidentiality ensures your staff is not needlessly worried and that you don’t risk losing patients. By working with a broker, any potential buyer must first sign a non-disclosure agreement that enables them to view anonymous volumes of financial information relating to your practice without disclosing your identity.
A dental practice appraisal evaluates what a practice is worth based on several sets of criteria, which helps determine the best asking price for selling the dental practice. A broker looks at the practice’s cash flow, marketability, equipment, transferability of staff and patients, and other factors to determine its current market value. An accurate appraisal eliminates the guesswork of establishing an asking price, and gives dentists the greatest value for their practice. Doing so allows dentists to establish realistic goals and expectations for selling their practice. Without a practice appraisal, selling is a frustrating experience for both the buyer and seller due to setting unattainable goals.
Once a dentist has made the decision to sell a practice, they don’t want to see it languish on the market for an excessive amount of time. Dental practice brokers know the ins and outs of the market, including what it takes to sell the practice at the best possible price. They will prequalify all prospective buyers, eliminating tire-kickers who aren’t serious about or capable of making a purchase. Sifting through potential buyers to identify the most qualified prospects saves you time and helps you get the best price for selling your practice. When it’s time to close the deal, a dental broker ensures the sale closes on time at the agreed-upon price, and sees to it that both parties are satisfied with the exchange.
Just like a realtor streamlines the progression of selling a home, dental brokers help make selling your dental practice an efficient process. There are difficult but critical items of sale to navigate before signing, including allocation of purchased assets, division of hygiene production, accounts receivables, and the post-sale provider agreements. Once negotiations begin, the dental broker guides both parties through the process to ensure everything goes smoothly.
From a legal aspect, dental brokers help both parties avoid lawsuits by advising language that should be included or avoided in contracts, offsetting the risk of costly disputes. They’ll also support your accountant and attorney with suggestions on how to structure the best tax-advantaged sales, which helps with tax liability.
The brokers at U.S. Dental Transitions are both business consultants and dentists, giving you access to unparalleled industry and market insights. We combine our first-hand awareness of the dental profession with keen business savvy to bring expertise on all aspects of a practice sale. U.S. Dental Transitions specializes in working alongside both buyers and sellers to preserve the unique culture and philosophy of each individual dental practice. This ensures the smoothest possible transition from the seller to the buyer, where both parties are satisfied by the sale. If you’re ready to pass on your legacy to the next generation, get in touch with the brokers at U.S. Dental Transitions today.
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