Selling a dental practice is a complicated process. Don’t go at it alone.
In Part 1 of this article, we discussed the fact that selling a dental practice is a complicated process that requires the assistance of an experienced transition consultant. We also examined two important reasons to hire a dental practice broker: formulating a transition strategy to meet your individual needs and confidentially marketing your practice to find a buyer who is the right fit for your office. In Part 2, we will explore three other significant reasons to hire a dental practice broker when selling a dental practice.
Maximize the value you receive for your practice
Your dental practice is one of your most valuable assets and the proceeds of the sale will likely be used to fund a significant portion of your retirement. Therefore, it’s crucial that you maximize the value of your office at the time of sale. Determining the market value of your practice, articulating the practice value to potential buyers and their advisors, and maximizing the price you receive at closing are key responsibilities of a practice broker. Practice brokers are typically paid a commission based upon a percentage of the practice sales price. Therefore, it’s in their best interest to get you the highest possible price for your practice.
Have an advisor who represents your best interest during the transition process
While a dental practice broker’s goal should be to structure a win-win transaction for both parties, the broker should solely represent the best interest of the seller during the transition process. The broker also serves as a buffer between the buyer and seller to preserve the goodwill of the practice and relationship between the parties during negotiations.
Provide a structured closing process to ensure a smooth and timely transition of ownership
Navigating the closing process is often the most tedious and stressful part of selling a dental practice. Once you have identified a buyer for the practice, there are countless steps involved in completing the sale, including negotiating the practice purchase price, letter of intent, and asset purchase agreement, assigning the lease, securing practice financing, announcing the sale to the staff and patients, etc. A dental practice broker will walk you through each step of the closing process to ensure a smooth and timely transition of ownership.
These are just a few of the reasons to employ the services of an experienced practice transition consultant when selling a dental practice. Planning in advance and building a strong team of advisors will ensure that your practice transition is a success.
This article is brought to you by Brannon Moncrief of McLerran & Associates, specializing in Selling a Dental Practice in Texas.