As is often the case, the doctor has also taken their foot off the gas in recent years, resulting in a significant decline in revenue, profitability, and practice value. I can not say enough about how excellent my experience was with the sale of my practice. Determining the market value of the practice, finding the right buyer, negotiating the purchase price, drafting the asset purchase agreement, formulating the transition plan, negotiating the lease assignment, and obtaining practice financing are just a few of the key areas where a potential practice sale can be derailed and the experience, expertise, and guidance of McLerran & Associates can prove to be invaluable. It is important to consider the requirements of the lender when negotiating the lease term and to approach the landlord at the proper point in the transaction to protect confidentiality while not delaying the closing. Google Rating. 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. 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. • 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 We have been involved in over 1,000 successful practice transitions and understand the significant impact a practice sale has on both the professional and personal lives of our clients. 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. If handled properly, it should be a rewarding and profitable transaction for all parties involved. 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? Maryland – Established Periodontal Practice for Sale. 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. Upon establishing the value/asking price, we will construct a comprehensive practice profile that will be utilized to confidentially market the practice to prospective buyers. That includes tangible assets like equipment, inventory, and possibly accounts receivable. As practice brokers, we are often contacted by practice owners on the day they are ready to sell. 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. PITFALLS TO AVOID WHEN SELLING A DENTAL PRACTICE By Ron Lebow, Esq. 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. The next step is to find the right dentist for your practice. Capitalized excess earnings 2. 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.). Further, this practice … You also will want to coordinate the announcement with the new owner to ensure that you both present an appropriate message. Annual net receipts 4. The current doctor has a great reputation and is looking to retire. 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. Pediatric dental practices are the next most valuable, currently selling for an average of 71.22% of annual collections… An existing practice offers instant cash flow. By taking a more hands-on approach, our team can find a quality buyer in a shorter amount of time. This typically involves meeting the selling doctor, reviewing patient charts and practice reports, inspecting equipment, and consulting with an accountant to evaluate practice financials. 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. Ensuring that you both agree with the message is important. It is important that a dental practice valuation is performed by an experienced professional to ensure it is thorough and accurate. When you sell a dental practice, maintaining confidentiality during the transition process is extremely important. My PARAGON consultant was exceptionally helpful throughout the entire process. 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. Since 1974, California Practice Sales, Inc., has conducted thousands of dental practice appraisals in Southern California. 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. There are over 1,000 active patients with a steady referral base. Most calculations of value utilize multiple valuation formulas averaged together to arrive at a final estimate. We also oversee all communication with potential buyers and their advisors and handle initial practice showings after office hours. Therefore, it is more important than ever for potential sellers to understand the factors that influence value and take the necessary steps to maximize practice value, beginning with considering the financial and emotional implications of a practice sale and planning for their transition in advance. In an asset sale, the buyer purchases some or all of the assets of the dental practice. While navigating the financing process, the buyer will also be completing their due diligence on the practice. 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. Find the perfect dental practice for you, across the UK. 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. We look forward to working with you! 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 … 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. Involve the new owner in all of the details of announcing the sale. These emotions can be even more intense for those doctors who do not have other interests or hobbies outside of practicing dentistry. 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. Selling a dental practice starts with assessing the value. 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. 2019 Revenue was … 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. A full service transition firm staffed by industry experts. This practice was opened in 2009 but the doctor is … 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. This contract circumvents the current … This dental practice is successful and established in a charming city in Maryland. How strong is my emotional connection to my practice? Include the information required by law, but also try to anticipate questions they will have, such as information about the new owner, how ongoing care and records will be handled, and the policy for dealing with outstanding payments that are due to the dental office. ), 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. NEW LISTING! There are countless ways to sell a dental practice. 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. Welcome to First Choice Practice Sales Inc. This approach doesn’t cut it! It was a pleasure to have such a … Generating Approximately $2.5M in Average Annual Revenue. When announcing the sale of a business, timing is important. The reason for this is simple: to protect the goodwill of the practice. Once you have selected a transition strategy and prepared your practice for sale, you are now ready to initiate the transition process. 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. Buyers are especially interested in a fair answer to this question as … 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.). Send a letter to your patients. ABOUT D&M. 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. 4.4 × 0330 088 11 56 A A A. 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 … 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. Contact key suppliers. Patient confidential information constitutes Protected Health … The sale of a dental practice is one of the most significant events in your professional career. Selling a dental practice is an emotional process for any doctor because of the relationships developed with their patients and staff over the years. If you deal with a large number of suppliers, a letter alone is appropriate. Beware of working with a broker who advocates dual representation, in which they represent both the buyer and seller. 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. 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. We are heavily involved in the local dental community and spend a great deal of time educating and cultivating relationships with potential buyers. With a diverse skill set and knowledge in finance, accounting, marketing, and professional sales, our team has the experience to craft a transition strategy to meet the goals of each client and expertise to properly value your practice, effectively market the practice to find a buyer who is the right fit, maximize the value our client receives for their practice, and work closely with all parties involved in the sale to facilitate a smooth transition of ownership. In the sale of a dental practice, confidential information concerning patients, however, requires further protective steps. Over the past few years, market conditions have been favorable for sellers, as there has been strong demand for dental practice acquisition opportunities coupled with a limited supply of sellers and lenders have been providing buyers with 100% financing at historically low-interest rates. 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. 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. 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 … Common valuation methodologies: 1. Announce the sale to the general public. 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. What interests or hobbies do I have to keep me busy following the sale? Suppliers likely will have a different set of questions than patients, such as whether billing addresses have changed, which party is responsible for balances due, and whether there are any other management changes taking place at the practice. Therefore, it’s imperative to meet with our team at McLerran & Associates well in advance of a sale to determine the best transition strategy to accomplish your individual goals. Dental Office – General Dentistry. 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. 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. Announcing the sale of a dental practice -- or any business that deals with multiple members of the public -- takes planning and coordination. Send them a letter -- or an e-mail if they have stated that as a preference -- announcing that you've sold the business. 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. You don't want employees to learn of the sale from people outside the business. 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. Begin the planning process three to five years in advance of a transition. 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. 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 have a brand new opportunity with this start-up dental practice for sale in Michigan, located just east of Ann Arbor in Livonia, MI. 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 … 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 team at ADS … We also volunteer our time and make considerable monetary contributions to charitable dental organizations such as the Capital Area Dental Foundation. When announcing the sale of a business, timing is important. We have found that the emotional process of selling a practice often plays a more significant role than the financial implications. As a dental office, you should have easy access to the addresses of your patients. Home. and determine what type of opportunity they are looking for. Announcing the sale of a dental practice -- or any business that deals with multiple members of the public -- takes planning and coordination. Utilizing different methodologies builds confidence in the end value and identifies outlying financial or practice data that may cause a deviation. 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. You don’t want to leave money on the table or get shortchanged in the process. Timing of this introduction, how the initial meeting is handled, and training the staff to explain the transition to patients is a critical step in ensuring a smooth transition of ownership and maximum patient retention following the sale. Unlike a start-up practice, an established practice has … Contact us by email at: info@dentaltransitions.com, TREC Information About Brokerage Services. 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. There are many factors to take into consideration when deciding which dental practice to purchase. 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. Selling a dental practice might be the single biggest decision of your professional career. Therefore, it is imperative to be educated about the process and employ the services of experienced professionals (McLerran & Associates, attorney, accountant, etc.) 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. Provide draft contracts including the Letter of Intent and Asset Purchase Agreement. You will want to make sure employees, key customers and suppliers learn of the sale before the general public. In that situation, the doctor’s options are relatively limited in regards to the type of transition strategy they can utilize to sell their office. Also explore buying an ad with local media to announce the sale and thank the community for its support. We also offer dental practice … Am I ready to give up control of my practice? If handled properly, it should be a rewarding and profitable transaction for all parties involved. FACT: A dentist will typically sell a dental practice only once during his or her professional career. Upon agreeing on the terms of the sale, the next step in the process is for the buyer to secure financing. 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. At McLerran & Associates, we require all potential buyers to complete a confidentiality agreement prior to receiving any information regarding your office. Plan ahead for what you want to say to your employees, and be prepared to answer questions. 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. 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. 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. When buying or selling a dental practice, a key question to accurately answer is: How much is my dental practice worth? Make sure your staff is prepared to answer questions when patients come into the office. California Practice Sales, Inc., provides nine-page written appraisals of dental … Average annual earnings Typically, historical financial information of the practice is utilized to produce the calculated value under these scenarios. As previously mentioned, selling a dental practice is a complicated process which extends far beyond simply finding a buyer and closing on the sale. 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. Visit Frank Taylor Associates’ website and view our extensive list of dental practices for sale. In addition to the APA, the buyer will need to negotiate an assignment of the existing office lease or negotiate a new lease with the building landlord. 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. With so much at stake, you really need … H… Handle all inquiries from potential buyers and their advisors regarding the practice, including conversations, email correspondence, and showing the office after business hours. 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. 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. As a medical professional, you also likely will have legal obligations related to communicating how your patients' medical records will be maintained in the future. DENTAL PRACTICES FOR SALE Find your perfect practice from our listing of dental practices for sale. 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. Doctors who are preparing to sell a dental practice often ask us what our role in the process will entail. 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. 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 work diligently to cultivate relationships with prospective buyers to understand their needs, goals, and skill-set then match them with the appropriate practice. This involves understanding each lender’s unique underwriting requirements, presenting a comprehensive practice prospectus and cash flow analysis, and proactively addressing any potential red flags up front. 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. 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. 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. 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. To avoid these mistakes, we encourage you to contact us at least three years in advance of your practice transition. Assist the buyer with securing practice financing. Asset value 3. NW Washington, DC – Premiere, General Dentistry Practice For Sale In NW Washington DC. 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. 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. Every contact between buyer, seller and broker, from initial discussion to closing, is an opportunity to lay the … Asset purchases can also … 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. 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. 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. Here are our primary responsibilities as your practice broker: As you can see, our team plays a vital role in the transition process. Young … The sale of a dental practice is one of the most significant events in your professional career. Check with your state licensing agency to determine what forms of notice the law requires. Copyright 2021 Leaf Group Ltd. / Leaf Group Media, All Rights Reserved. Each practice transition is unique and presents its own set of challenges to overcome during the transition process. Since most buyers will require 100% financing, it is important for your buyer to work with lenders who are familiar with dental transactions. 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