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
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
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
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...
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