In Part I of this article, we discussed how to go about choosing the RIGHT dental practice broker to represent you in the sale of your practice. Part II of this article provides a couple of additional questions you can use to qualify a dental practice broker prior to signing a listing agreement:
How are you involved in the local dental community?
It is crucial for your dental practice broker to have intimate knowledge of the local dental market. To truly understand the market, the broker needs to be actively involved in the local dental community. Are they involved with the local dental society and various study groups as both sponsors and guest speakers? Are they actively networking with dental supply companies, local dental attorneys and accountants, practice management consultants, local financial investment firms, commercial real estate brokers, dental lenders, etc.? Are they hosting seminars to educate dentists on practice transitions and the process of buying or selling a practice? Are they cultivating relationships with potential buyers? If your potential dental practice broker isn’t doing these things then you will need to consider whether they truly understand and are committed to the local dental market.
How will you market my practice and qualify potential buyers?
Your dental practice broker should have an informative and comprehensive website in place to market your practice and educate potential buyers on the process of purchasing a practice. The broker should also market their company and listings in local and state dental journals. While this is absolutely necessary in marketing a practice, it should only be the starting point. Once a buyer inquires about a listing, your broker should spend time with them prior to visiting any offices to discuss their background, career goals, practice philosophy, personal financial condition, etc. During this initial meeting and subsequent practice showings, the broker should be learning about what type of practice is a fit for each buyer. If your dental practice broker places a priority on developing relationships with buyers then they should have a pipeline of qualified doctors who may the right fit for your office when the practice is listed.
As we have discussed, it is imperative that your dental practice broker have the necessary experience and skills to effectively handle your practice transition and maximize the value you receive for your office. They should also take a proactive and hands on approach to marketing your practice and qualifying potential buyers to ensure a successful transition for all parties involved. By asking your colleagues and advisors for a referral to a local practice broker and utilizing the questions in this article to qualify your broker, you can feel confident that you have chosen the RIGHT dental practice broker to represent you in the sale of your practice.
This article is brought to you by David McLerran and Brannon Moncrief of McLerran & Associates, specializing in Dental Practice Broker in Texas.