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The Role of A Practice Broker (Part 2 of 2)

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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:

  1. 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.
  2. 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.
  3. Handle all inquiries from potential buyers and their advisors regarding the practice, including conversations, email correspondence, and showing the office after business hours.
  4. 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.
  5. 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.
  6. Provide draft contracts including the Letter of Intent and Asset Purchase Agreement.
  7. 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.)
  8. Assist the buyer with securing practice financing.
  9. 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.

This article is brought to you by Brannon Moncrief of McLerran & Associates, specializing in Dental Transition Consulting.


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