• Austin (512) 900-7989
  • Houston (281) 362-1707
  • San Antonio (210) 737-0100
  • South Texas (361) 221-1990

Is Now a Good Time to Sell a Dental Practice?

Is Now a Good Time to Sell a Dental Practice? As practice transition specialists, we are often asked “Is now a good time to sell a dental practice?” While there are many factors involved in making the decision to transition your practice, the short answer is YES. The current practice transition environment features several attributes that are helping to enhance practice value and make it an ideal time to consider a practice sale: High Demand – The substantial increase in the profitability of dental practices and the poor economic outlook in medicine have caused a significant increase in dental school applicants over the past 10 years. With 61 dental schools currently operating in the United States and Puerto Rico and several more in...

Keys to Maximizing Practice Value

Keys to Maximizing Practice Value As practice transition consultants, we are frequently contacted by dentists who have an immediate need to sell their practices due to retirement, disability, etc. After meeting with the doctor and reviewing the practice financials, we often find that practice revenue and profitability have declined over the past few years due to various reasons such as the dentist cutting back his work schedule to pursue other interests, not actively marketing the practice or pursuing new patients, or referring out more procedures. We also often find that the selling doctor has not updated the office appearance or equipment in 10-20 years. Unfortunately, the decline in revenue/profitability and dated décor...

Hiring the Right Dental Practice Broker

Hiring the Right Dental Practice Broker Selling a dental practice is a huge life event for a practice owner and will have a significant impact on their quality of life after the sale. In previous articles, we discussed the reasons for hiring a dental practice broker and their role in the transition process.  While it is important to understand the role of a broker and the importance of utilizing their services, it is also imperative that you hire the RIGHT dental practice broker to represent you in the sale and facilitate a smooth transition. When selecting a dental practice broker, consider asking the following questions before signing a listing agreement: What experience do you and your team have with dental practice...

How to Buy a Dental Practice: The Due Diligence Process

How to Buy a Dental Practice:  The Due Diligence Process The process of evaluating a dental practice acquisition opportunity is often referred to as “due diligence”. Due diligence is an essential part of purchasing a practice, as it allows the buying dentist to fully examine the seller’s practice and confirm the material facts provided by the seller or practice broker.  When learning how to buy a dental practice, buyers often ask us questions regarding how to go about completing their due diligence, so we offer this two part article as a brief guide to this process. First, let’s examine the meaning of due diligence.  According to investopedia.com, due diligence is defined as: An investigation or audit of a potential investment. Due diligence...

The Role of a Dental Practice Broker

The Role of a Dental Practice Broker Planning to sell a dental practice?  Don’t go at it alone. FACT: A dental practice is typically the doctor’s most valuable and prized possession. FACT: A dentist will typically sell a dental practice only once during his or her professional career. Considering these facts, many dentists will make a wise choice and entrust the responsibility of selling their practices to a professional who has the knowledge and experience to facilitate a successful transition … a dental practice broker. In my experience as both a dental lender and practice broker, these dentists typically receive a higher value for their practices, have a more amicable relationship with their buyers following the sale, and...

The Dental Practice Appraisal – A Powerful Tool in the Transition Process

The Dental Practice Appraisal – A Powerful Tool in the Transition Process While there are several “rules of thumb” that practice brokers typically use to help their clients gain a general understanding of the fair market value of their practices, a formal dental practice valuation can serve as a valuable tool in planning for a practice transition and negotiating with potential buyers.  In this article we will exam the different appraisal methodologies that are utilized in determining the market value of a dental practice. According to the IRS, which is the primary theoretician in the business valuation world, a proper dental practice appraisal should consider three approaches:  Income, Asset, and Market. The conclusion or calculation of value for the business...

Dental Practice Financing – Apply With Confidence

Dental Practice Financing – Apply With Confidence Purchasing a dental practice is one of the most important decisions you will make in your professional career and often unlocks the door to a considerable increase in compensation and personal freedom. Since most dentists rely on third party financing to purchase or make capital investments in their practices, it is imperative that you understand the perspective of dental lenders and how to position yourself for success when applying for practice financing. Dental practices continue to thrive despite the recent economic downturn.  Specialized dental lenders have the knowledge and experience to recognize that the dental industry is fairly insulated from adverse changes in the economy,...

The Importance of Building a Strong Team of Advisors

The Importance of Building a Strong Team of Advisors Buying a dental practice is typically a one-time event and the largest purchase a dentist will make in his or her lifetime. While McLerran & Associates usually represents the selling dentist in our transitions, our goal is to put together a win-win transaction for all parties involved. In addition to guiding the buyer through the process of buying a dental practice, we focus on helping the buying dentist build a strong team of advisors to obtain professional guidance on each aspect of the purchase (due diligence, contract review, transition, etc.). Here is a list of advisors that we recommend a buying dentist have on their team: Dental Attorney – It is imperative to utilize an attorney...

The Process of Selling a Dental Practice

The Process of Selling a Dental Practice The sale of a dental practice is one of the most important events in your professional career. If handled properly, it should also be a rewarding and profitable transaction for all parties involved. To ensure a successful transition, it is important to follow these crucial steps: Begin the planning process three to five years in advance of a transition. There are countless ways to sell a dental practice. Therefore, it’s important to meet with a local practice transition consultant/broker to determine the best transition strategy to meet your individual goals leading up to and following the sale. Another advantage of beginning the process three to five years before a sale is the ability to...

Dr. Vernon Jones (Houston)

I selected McLerran& Associates because they had the most listings in the Texas Dental Journal. I was very pleased with the professional way that Patrick Johnston handled everything and always kept me informed as things progressed. I actually had a verbal agreement in one week! My practice was toured by 5 dentists during that week with one low ball offer and another reasonable offer that I negotiated on and accepted. We even had to cancel another appointment set up for the following day. The actual sale took longer then I expected but that was because of the buyer’s bank paperwork and from the landlord’s lawyer concerning the new lease. Patrick Johnston even helped with...

Austin

3755 S. Capital of Texas Hwy
Suite 150
Austin, TX 78704
Phone: (512) 900-7989

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San Antonio

4243 E. Piedras Drive
Suite 275
San Antonio, TX 78228
Phone: (210) 737-0100

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Houston

2219 Sawdust Rd
Suite 1103
Spring, TX 77380
Phone: (281) 362-1707

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South Texas

2525 S 11th Street
Unit 77
Port Aransas, TX 78373
Phone: (361) 221-1990

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Contact us by email at: info@dentaltransitions.com

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