Dental Transition Consulting is Recommended When Planning to Sell a Dental Practice
In Part 1 of this article, we communicated why it is imperative for doctors who are preparing to sell a dental practice to utilize dental transition consulting services of an experienced dental practice broker. As we previously discussed, dentists who work with a practice broker can expect to receive a higher value for their office, have a more amicable relationship with the buyer following the sale, and experience much less stress and anxiety during the transition process than doctors who attempt to sell a dental practice on their own.
We also touched on the first three primary responsibilities of a practice broker. Here is the remainder of the broker’s key responsibilities during the transition process:
- Construct a detailed marketing profile and cash flow analysis for the seller’s practice – The marketing profile should be organized and include all pertinent information that potential buyers and their advisors will need in order to evaluate the office.
- Confidentially market the practice to qualified buyers and advertise the practice on a local, state, and national level via the web, print ads, seminars, trade shows, etc. It is critical that all potential buyers are required to sign a Confidentiality Agreement prior to receiving any information on the seller’s practice.
- Handle all inquiries from potential buyers and their advisors regarding the practice, including conversations, email correspondence, and showing the office after business hours.
- Work with the seller to identify the right buyer for the practice so that the staff and patients will be in good hands following the transition.
- Serve as a buffer between the buyer and seller throughout the process (particularly during price and contract negotiations) to preserve the goodwill of the practice and relationship between the parties.
- Provide draft contracts including the Letter of Intent and Asset Purchase Agreement.
- Provide dental transition consulting so the practice sale and transition go smoothly, including managing all correspondence between both parties and all of their advisors (attorneys, accountants, consultants, lenders, etc.)
- Assist the buyer with securing practice financing.
- Assist the buyer with building an experienced team of dental advisors so that he/she is positioned for long term success following the transition.
As you can see, a practice broker plays a vital role in the transition process. When you consider all of the responsibilities associated with owning/operating a dental practice along with the expertise and time necessary to fulfill the practice broker’s responsibilities, it is easy to understand why doctors who attempt to sell a dental practice on their own are often overwhelmed by stress and anxiety.
Therefore, I encourage you to seek dental transition consulting from a local, reputable practice broker when it is time to start planning the sale of your practice.