Selling a Dental Practice – The Ideal Candidate May Be The Dentist Next Door
Dentists for the most part live and work in their private practices and are isolated from their fellow wet fingered laborers. Many dentists share a common wall with another dentist and might see them in the hall a few times a year only to exchange a nod, a few words, or a quick wave in passing. This is the ‘The Dentist Next Door.” In large metropolitan areas, many dentists have never had a conversation with the other dentists in the area.
At McLerran and Associates we regularly get calls from dentists asking about dental practices for sale or practice mergers. Confidentiality is always paramount, since many of these mergers lead to a dentist purchasing the practice of a neighboring dentist.
A practice merger may be a great option to grow your practice rather than spending money on marketing or opening up a satellite office.
Here are a few reasons why a dentist might consider a practice merger:
Economies of scale – increase revenues by combining the offices and enhance cash flow through eliminating duplicate expenses such as occupancy costs, advertising, front office staff, etc.
Eliminate competition – purchasing dental practices for sale near your office and merging it into your location enables you to eliminate a competitor rather than allowing the seller’s office to be sold to another dentist.
Increase in practice value – an increase in revenues and cash flow will lead to a higher practice value when you are ready to sell.
Dentists typically want to keep the sale of their practice confidential and don’t talk to their colleagues about transitioning. Therefore, there may be ideal dental practices for sale located right next door to your office (‘The Dentist next door’) without you even knowing it.
Give us a call at McLerran & Associates to see if we have a listing near your practice that may be a good potential merger candidate. The merger candidate could be the guy next door who contacted us last month and asked us to facilitate a merger.
This article is brought to you by Tom Guglielmo, DMD of Mc Lerran & Associates specializing in Dental Practices for Sale in Texas.