There is a lot more to selling your endodontic practice than purchasing an ad in the JOE and waiting for the phone to ring. Some of the services we perform include:
- We will value your practice using our proprietary endodontic practice valuation model. It is critical to have a professional appraisal so that you know the value of the practice and potential buyers can review the basis of the asking price. In addition, an appraisal is required in order for the buyer to obtain financing. There are multiple differences between a general practice appraisal and an endodontic practice appraisal.
- We have an extensive marketing program to find a qualified buyer for your practice. This includes contacting active buyers in our database (both associates and residents) that are looking to purchase a practice in your area and advertising the practice in multiple trade magazines and on multiple websites. We maintain relationships with active buyers across the country by doing numerous presentations at national endodontic meetings and residency programs. 80 to 90% of our buyers do not currently live in the state where they ultimately purchase a practice.
- It can be very detrimental to the ongoing operations of an endodontic practice for a potential sale to be common knowledge. We pre-qualify potential buyers and require them to execute a confidentiality agreement before being permitted to receive any information regarding your endodontic practice, including its identity.
- We present a marketing package to the potential buyer that includes pertinent practice data and prepared financial information. We explain all the business aspects of the practice to the potential buyer and why it makes sense long term for them to own a practice.
- We will work with you and a potential buyer to negotiate financial and other transition terms that are reasonable and fair to both parties. There are many items besides price that have to be determined once a buyer is found.
- There are many tasks that have to be accomplished to effectively transition a practice. Once a suitable buyer is found and the terms are negotiated, we provide a checklist to both seller and buyer of items that need to be done before the closing, closing the sale, and after the sale to effectively transition the practice. We assist both the seller and buyer in completing all items on the checklist.
- A good attorney will cost you $250 to $350 an hour. Most attorneys have not done any dental purchase and sale agreements and it can therefore cost you in the tens of thousands of dollars for them to draft and finalize the necessary documents. Our attorneys specialize in dental practice transitions and will provide all the necessary contracts to effectively sell the practice at no additional cost to you.
- One of our full time associates is a Certified Public Accountant that has extensive experience with business sales and their tax effects. We structure the transaction to ensure that both the seller and buyer receive income tax treatment that is as beneficial as possible. If your CPA has not done professional practice sales, it is unlikely they are aware of certain tax treatment available. Most of the time our tax savings to you are more than our fees.
- Our firm has relationships with several lending institutions. Our relationship with these institutions along with our appraisal methodology ensures we can find 100% financing of the purchase price for our qualified buyer. A seller should not take less than 100% cash when selling their practice. We assist the buyer in all the necessary steps to obtain financing.
- We work with both the seller and buyer to close the practice sale. However, it is not over at closing. We have an extensive suggestion list of effective ways to transition the referrals, staff, and patients to the new doctor once the sale is complete. The timing of these items is critical.
As you can see, there is quite a bit involved in selling and transitioning your practice. The general items listed above do not include all the details. If you remember your first root canal, you were probably not near as efficient as you are today. If you have not transitioned a lot of practices (and we hope you have not), you can end up spending quite a bit of time and money trying to figure out what to do. We have performed hundreds of successful endodontic transitions and hope you believe as we do that your time is better spent performing quality endodontic procedures. For further information on selling your practice, please contact us.