While navigating the financing process, the buyer will also be completing their due diligence on the practice. When announcing the sale of a business, timing is important. Therefore, it is crucial for you to understand the key factors that influence the value and marketability of your practice to ensure that you are in the position to maximize the value of your office at the point of sale. ), PPO credentialing, drafting a transition letter that will be mailed to active patients upon closing, and ensuring the lender receives all necessary documentation to fund the buyer’s loan on the closing date. Under this arrangement, the broker is obligated to share all details with both parties, including any statements made by either party concerning pricing or terms. Therefore, to ensure your practice transition is successful, it is imperative to follow these crucial steps: While this list covers the most significant steps required to sell a dental practice, it is by no means comprehensive. We have found that our clients typically receive a higher value for their practices, have a more amicable relationship with their buyers following the sale, and experience much less stress and anxiety during the transition process than their counterparts who try the “do it yourself” approach. The most valuable type of dental practice continues to be orthodontics at 79.81% of collections. If you have questions regarding the transition process or would like to schedule a time to meet at your office to discuss your future plans and potential transition strategies, please don’t hesitate to contact us. The opportunity to sell a practice reflects the culmination of years of hard work and one of the most satisfying moments of a … We confidentially market our listings via our website (which ranks very highly on Google and provides your practice with strong national exposure), online dental communities such as Dentaltown, local and state dental journals, and local dental conventions and dental society/study club meetings. Since 1974, California Practice Sales, Inc., has conducted thousands of dental practice appraisals in Southern California. Here are our primary responsibilities as your practice broker: As you can see, our team plays a vital role in the transition process. Beware of other practice brokers who offer “dual representation”, as it is impossible to represent the best interests of both the buyer and seller simultaneously. We are heavily involved in the local dental community and spend a great deal of time educating and cultivating relationships with potential buyers. The first step in the transition process is to obtain a practice valuation from a local, reputable practice broker so you and your financial advisors can determine if you are financially prepared to sell your office. If you deal with a relatively small number of suppliers, you may want to contact them personally and then follow up with a more formal letter to document the end of the business relationship. The most important document involved in a dental practice sale is the Asset Purchase Agreement, which serves as the legally binding document detailing the terms of the sale. The reason for this is simple: to protect the goodwill of the practice. At McLerran & Associates, we provide the parties with a draft Asset Purchase Agreement and encourage each doctor to obtain their own legal counsel (with experience in dental transitions) to review the APA and other agreements involved with the sale. The first step in this process is to collect all of the information we will need to complete a practice valuation/appraisal: practice reports, financials, office lease, equipment list, pictures, etc. The team at ADS … This dental practice is successful and established in a charming city in Maryland. In an asset sale, the buyer purchases some or all of the assets of the dental practice. 4.4 × 0330 088 11 56 A A A. While market conditions remain favorable at the moment, we are expecting several changes to occur over the next few years that could have a significant impact on practice value. One of the least thought about but most often negotiated issues in selling a dental practice is the allocation of the purchase price and the associated tax consequences. Typically, the group of assets that would be sold between the selling party and buying party would include dental supplies, furniture, fixtures, and equipment used in the practice, patient files, and goodwill of the … Therefore, we encourage you to contact McLerran & Associates when it is time to start planning the sale of your practice. An existing practice offers instant cash flow. Dental practice buyers are typically much younger than sellers these days, and they are performing a wider range of procedures in-house rather than referring those procedures to specialists. If handled properly, it should be a rewarding and profitable transaction for all parties involved. Considering these facts, many dentists will make the wise choice to entrust the responsibility of selling their practice to a professional who has the knowledge and experience to facilitate a successful transition … a dental practice broker. Provide an organized process 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.). • Practice consistently collection over $1.8M • Established practice with 6 equipped operatories • Doctor would like to work for the buyer post-sale • Paperless office, with Open Dental and digital imaging • Building available for sale Construct a detailed marketing profile and cash flow analysis for the seller’s practice – The marketing profile includes all of the pertinent information a potential buyer and their advisors will need in order to evaluate your practice. Write a short, straightforward press release that can be sent to newspapers, radio stations, television stations or online sites that cover business news in your area. In an asset sale of a medical practice, let’s say you, the seller, have made a list of all the furniture and fixtures that are part of the sale. Handle all inquiries from potential buyers and their advisors regarding the practice, including conversations, email correspondence, and showing the office after business hours. This approach doesn’t cut it! Upon agreeing on the terms of the sale, the next step in the process is for the buyer to secure financing. You don't want employees to learn of the sale from people outside the business. Send them a letter -- or an e-mail if they have stated that as a preference -- announcing that you've sold the business. Once you have selected a transition strategy and prepared your practice for sale, you are now ready to initiate 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. Announce the sale to the general public. You also will want to coordinate the announcement with the new owner to ensure that you both present an appropriate message. We look forward to working with you! Am I ready to give up control of my practice? Every contact between buyer, seller and broker, from initial discussion to closing, is an opportunity to lay the … Once an ideal buyer has been located, the next step in the process is to agree on the terms of the purchase in a Letter of Intent (we provide our clients with a draft LOI), which should detail the proposed purchase price, intended closing date, assets included in the sale, and a list of contingencies that have to be met before the transition is completed. He has a Bachelor of Science in journalism from the University of Kansas and currently works as a government and business reporter for a daily newspaper. While some practice owners may be able to identify a buyer who is interested in purchasing their practice with little difficulty, getting from that point to the closing table is the most challenging component of a practice sale. Beware of working with a broker who advocates dual representation, in which they represent both the buyer and seller. Should a buyer determine that your practice is a good fit after reviewing the profile and visiting the office, a follow-up meeting will likely be arranged to allow both doctors to get to know each other. Begin the planning process three to five years in advance of a transition. At McLerran & Associates, we work diligently to structure a win-win transaction for all parties involved in the transition but our fiduciary responsibility is solely to the seller. Dental Practice Purchase Agreement This is a simple asset purchase agreement elegantly constructed by (Brian Rogers), then modified for the sale of a Dental Practice. Welcome to First Choice Practice Sales Inc. If handled properly, it should be a rewarding and profitable transaction for all parties involved. Annual net receipts 4. It is important that a dental practice valuation is performed by an experienced professional to ensure it is thorough and accurate. 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. If you deal with a large number of suppliers, a letter alone is appropriate. Maryland – Established Periodontal Practice for Sale. You bought that couch in the waiting room for $1,000, depreciated it over the last five years on your tax returns, and then valued it at $200 on your list of assets when you sold the practice. By asking yourself the above questions and dealing with these feelings prior to putting your practice on the market, you will be in the position to minimize your anxiety as you navigate the transition process. Another advantage of beginning the process three to five years before a sale is the ability to address and correct issues that could have a negative impact on practice value, thus ensuring that you maximize the value of your practice upon the sale and position the future practice owner for success. Therefore, it is imperative to be educated about the process and employ the services of experienced professionals (McLerran & Associates, attorney, accountant, etc.) With so much at stake, you really need … Since 1993 First Choice Practice Sales Inc. has provided California with dental practice transition and brokerage services; including all aspects of buying dental practices, selling dental practices and appraising dental practices. We accomplish this initiative by regularly attending and sponsoring local dental society and dental study group meetings, hosting seminars to educate buyers and sellers on the transition process, and networking with professionals who serve as valuable resources for our clients (attorneys, accountants, consultants, equipment reps, etc.). My PARAGON consultant was exceptionally helpful throughout the entire process. While it is important to understand the role of a practice broker and the importance of utilizing their services, it is also imperative that you hire the RIGHT broker to represent you in the sale and facilitate a smooth transition. I can not say enough about how excellent my experience was with the sale of my practice. Google Rating. Find the perfect dental practice for you, across the UK. Ensuring that you both agree with the message is important. Some states require formal legal notices to be published in newspapers, and may require specific statements to be made about how medical records will be kept confidential in the future. In doing so, you will gain valuable insight regarding the current value of your practice and the key factors that impact practice value and marketability. The current doctor has a great reputation and is looking to retire. As a dental office, you should have easy access to the addresses of your patients. Selling a dental practice is not like selling a home … it is a complicated process which extends far beyond simply finding a buyer and closing on the sale. The sale of a dental practice is one of the most significant events in your professional career. By taking a more hands-on approach, our team can find a quality buyer in a shorter amount of time. Make sure your staff is prepared to answer questions when patients come into the office. Doctors who are preparing to sell a dental practice often ask us what our role in the process will entail. D&M Practice Sales and Leasing is an independently owned and operated Dental Practice Sales Brokerage that has served Southern and Central California since 1994. Announcing the sale of a dental practice -- or any business that deals with multiple members of the public -- takes planning and coordination. NEW LISTING! ABOUT D&M. For many practice owners, it is extremely difficult to consider selling their practice due to the emotional ties the doctor has to their patient base, staff, and the business they have spent their entire career building. You will want to make sure employees, key customers and suppliers learn of the sale … This practice was opened in 2009 but the doctor is … Involvement in the Local Dental Community. Throughout this process, the staff and patients are typically unaware that the dental practice is being transitioned to a new doctor. A full service transition firm staffed by industry experts. By exclusively representing the Seller, clearly disclosing this fact to the buyer, and assisting both parties in building a strong team of advisers, we have the ability to represent the seller’s best interest while ensuring the buyer has proper representation and is positioned for success following the purchase. It is also important to remember that selling your office is not synonymous with retiring, as there may be opportunities for you to continue generating personal income following the sale by working as an associate in your office or outside of the non-compete radius. You will find a host of dental practices for sale throughout Georgia, which includes listings in Atlanta, Columbus, Savannah, Sandy Springs, Macon, Roswell, Albany, and every other Georgia city with active … Buyers are especially interested in a fair answer to this question as … As the closing date approaches, our team at McLerran & Associates will work closely with the buyer and seller to ensure that all the details of the transition are completed prior to closing, including transferring/establishing service provider accounts (utilities, phone, etc. Selling a dental practice might be the single biggest decision of your professional career. Watson Brown is a full-service transition firm offering expertise in dental practice transitions, including practice appraisals, pre-sale consultations, financial advisement, and complete brokerage services.Dental practice … Involve the new owner in all of the details of announcing the sale. Assist the buyer with building an experienced team of dental advisors so that he/she is positioned for long term success following the transition. If you plan to continue working in your office following the sale, are you willing to adopt an “associate mentality” and be accepting of change? Generating Approximately $2.5M in Average Annual Revenue. Identify and accomplish the seller’s goals for the transition – Every doctor and practice is unique so it is imperative for us to spend the time to understand the seller’s individual situation and goals and formulate a transition strategy to meet their needs. There are countless ways to sell a dental practice. This contract circumvents the current … Therefore, it’s important to ask yourself these questions before making the decision to sell: It is also worth mentioning that the emotional implications associated with the sale of your practice will increase once you accept an offer and begin navigating the closing process. Assist the buyer with securing practice financing. We also oversee all communication with potential buyers and their advisors and handle initial practice showings after office hours. Here are some of the key considerations you should take into account when planning your practice transition: For many doctors, their dental practice is one of their most valuable assets and the proceeds from the sale of their office will be utilized to fund a significant portion of their retirement. You don’t want to leave money on the table or get shortchanged in the process. … California Practice Sales, Inc., provides nine-page written appraisals of dental … Common valuation methodologies: 1. Announcing the sale of a dental practice -- or any business that deals with multiple members of the public -- takes planning and coordination. While the average sales price of a dental practice from a national perspective is approximately 65% of the most recent year’s revenue, there are a number of other factors that can influence value in either direction, including revenue trends, profitability, type of patient base, type of dentistry, location (urban vs. rural, high visibility vs. low visibility), quality and age of equipment, curb appeal, etc. At McLerran & Associates, we feel that it’s imperative to play an active role in the local dental community in order to keep a pulse on current market conditions and cultivate relationships with potential buyers and sellers. Selling a dental practice starts with assessing the value. NW Washington, DC – Premiere, General Dentistry Practice For Sale In NW Washington DC. Gather your employees and tell them of the sale. Since most buyers will require 100% financing, it is important for your buyer to work with lenders who are familiar with dental transactions. Utilizing different methodologies builds confidence in the end value and identifies outlying financial or practice data that may cause a deviation. Visit Frank Taylor Associates’ website and view our extensive list of dental practices for sale. To avoid these mistakes, we encourage you to contact us at least three years in advance of your practice transition. At McLerran & Associates, we require all potential buyers to complete a confidentiality agreement prior to receiving any information regarding your office. To sell a dental practice, many brokers will simply list a description of your practice in various journals and on their website with the hope of coming across a buyer who is a good fit. Check with your state licensing agency to determine what forms of notice the law requires. Solely represent the seller’s interest throughout the process – While our goal is to put together a win-win transaction for all parties involved, our responsibility is to solely represent the seller’s best interest during the transition process. McLerran & Associates employs numerous effective marketing strategies to ensure that we identify a buyer who is the right fit for your office in a timely manner and maximize the value you receive for your practice at closing. At McLerran & Associates, we play an active role in referring the buyer to several experienced dental lenders and helping position their loan request in a favorable light with each lender to enhance the probability of securing financing approval. In the sale of a dental practice, confidential information concerning patients, however, requires further protective steps. Young … These emotions can be even more intense for those doctors who do not have other interests or hobbies outside of practicing dentistry. This document should be specific to a dental transition and be a win-win agreement that protects both sides and discusses how common issues, such as accounts receivables and credit balances, will be handled after the sale occurs. We also volunteer our time and make considerable monetary contributions to charitable dental organizations such as the Capital Area Dental Foundation. Henry Schein Professional Practice Transitions provides the comprehensive support you need to locate a dental practice for sale that fits your needs, budget and career goals. Making the decision to sell your dental practice requires a great deal of thought regarding when and how you would like the transition of ownership to occur. There are over 1,000 active patients with a steady referral base. FACT: A dentist will typically sell a dental practice only once during his or her professional career. Because we place a high priority on developing meaningful relationships with potential buyers, we maintain a strong pipeline of qualified buyers and can immediately reach out numerous doctors who may be the right fit for your office immediately upon listing your practice. Since the buyer’s and seller’s financial interests are typically converse to one another, it is nearly impossible for the broker to fairly represent both parties under the dual representation arrangement. Determine a fair market value for the practice, maximize the value the seller receives at closing, and be able to support and articulate the value to interested buyers and their advisors. This information will also provide you with sufficient time to develop a customized transition strategy to meet your individual needs, make changes to your office that will enhance value, and avoid mistakes that may negatively impact value. Once you have determined that you are financially prepared to sell your practice, it’s time to move onto considering the emotional implications of the sale. Average annual earnings Typically, historical financial information of the practice is utilized to produce the calculated value under these scenarios. Dustin Hill is the former owner and publisher of a Midwest business journal and has been reporting on small business since 1992. Home. to help you navigate the process, protect/maximize the value of your practice, and ensure your transition is as smooth and successful as possible for all parties involved. We have a brand new opportunity with this start-up dental practice for sale in Michigan, located just east of Ann Arbor in Livonia, MI. Our professional dental brokers facilitate and assist in the purchase and sale of dental practices, as well as provide assistance in obtaining practice acquisition financing, locating and negotiating dental … Provide draft contracts including the Letter of Intent and Asset Purchase Agreement. What interests or hobbies do I have to keep me busy following the sale? As practice brokers, we are often contacted by practice owners on the day they are ready to sell. McLerran & Associates has the experience and expertise to help you navigate the transition process from start to finish, including developing a customized transition strategy for your individual situation, finding a buyer who is the right fit for your practice, and maximizing the value you receive for your practice. For what you want to say to your employees and tell them of the public -- takes and! The sale of a dental practice typically the doctor ’ s most valuable type of opportunity are. 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