Most calculations of value utilize multiple valuation formulas averaged together to arrive at a final estimate. 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. Selling a dental practice is an emotional process for any doctor because of the relationships developed with their patients and staff over the years. Each practice transition is unique and presents its own set of challenges to overcome during the transition process. The reason for this is simple: to protect the goodwill of the practice. When announcing the sale of a business, timing is important. To avoid these mistakes, we encourage you to contact us at least three years in advance of your practice transition. It was a pleasure to have such a … 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. DENTAL PRACTICES FOR SALE Find your perfect practice from our listing of dental practices for sale. Check with your state licensing agency to determine what forms of notice the law requires. 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. In the sale of a dental practice, confidential information concerning patients, however, requires further protective steps. 2019 Revenue was … 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. 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. The opportunity to sell a practice reflects the culmination of years of hard work and one of the most satisfying moments of a … 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. Selling a dental practice starts with assessing the value. If handled properly, it should be a rewarding and profitable transaction for all parties involved. 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. When writing a news release announcing the sale of the business, keep it brief but be sure to include information on how a reporter can contact you for more details. 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. 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. 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. 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. Asset purchases can also … 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. I can not say enough about how excellent my experience was with the sale of my practice. 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. These emotions can be even more intense for those doctors who do not have other interests or hobbies outside of practicing dentistry. Doctors who are preparing to sell a dental practice often ask us what our role in the process will entail. We look forward to working with you! 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. With so much at stake, you really need … Plan ahead for what you want to say to your employees, and be prepared to answer questions. H… 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. As a dental office, you should have easy access to the addresses of your patients. This contract circumvents the current … Contact key suppliers. 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. 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. Gather your employees and tell them of the sale. 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. 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. 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. One of the most overlooked part of the Dental Practice Sales process is the sales negotiation. 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. Selling a dental practice might be the single biggest decision of your professional career. 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. and determine what type of opportunity they are looking for. While navigating the financing process, the buyer will also be completing their due diligence on the practice. FACT: A dentist will typically sell a dental practice only once during his or her professional career. Involve the new owner in all of the details of announcing the sale. 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. 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. 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. Throughout this process, the staff and patients are typically unaware that the dental practice is being transitioned to a new doctor. An existing practice offers instant cash flow. Here are our primary responsibilities as your practice broker: As you can see, our team plays a vital role in the transition process. We also offer dental practice … We also oversee all communication with potential buyers and their advisors and handle initial practice showings after office hours. Once you have selected a transition strategy and prepared your practice for sale, you are now ready to initiate the transition process. 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. Also explore buying an ad with local media to announce the sale and thank the community for its support. A full service transition firm staffed by industry experts. You will want to make sure employees, key customers and suppliers learn of 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 Copyright 2021 Leaf Group Ltd. / Leaf Group Media, All Rights Reserved. You don't want employees to learn of the sale from people outside the business. … 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. 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. ), 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. You will want to make sure employees, key customers and suppliers learn of the sale before the general public. 4.4 × 0330 088 11 56 A A A. 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. 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. 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. 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 them a letter -- or an e-mail if they have stated that as a preference -- announcing that you've sold the business. We also volunteer our time and make considerable monetary contributions to charitable dental organizations such as the Capital Area Dental Foundation. Young … The sale of a dental practice is one of the most significant events in your professional career. This practice was opened in 2009 but the doctor is … 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. The most valuable type of dental practice continues to be orthodontics at 79.81% of collections. How strong is my emotional connection to my practice? Asset value 3. Am I ready to give up control of my practice? NEW LISTING! 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. In addition to handling all of the responsibilities discussed above in a professional and efficient manner, here are a few additional reasons that McLerran & Associates is the premier dental practice brokerage firm in Texas: Our team has specialized in providing practice appraisal and transition services to Texas dentists since 1987. 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. Assist the buyer with securing practice financing. 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. 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. Involvement in the Local Dental Community. This approach doesn’t cut it! 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. When buying or selling a dental practice, a key question to accurately answer is: How much is my dental practice worth? Announcing the sale of a dental practice -- or any business that deals with multiple members of the public -- takes planning and coordination. 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. 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. The next step is to find the right dentist for your practice. Pediatric dental practices are the next most valuable, currently selling for an average of 71.22% of annual collections… Announce the sale to the general public. 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. Utilizing different methodologies builds confidence in the end value and identifies outlying financial or practice data that may cause a deviation. As practice brokers, we are often contacted by practice owners on the day they are ready to sell. Average annual earnings Typically, historical financial information of the practice is utilized to produce the calculated value under these scenarios. Maryland – Established Periodontal Practice for Sale. Provide draft contracts including the Letter of Intent and Asset Purchase Agreement. 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. Generating Approximately $2.5M in Average Annual Revenue. 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. 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. 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. Find the perfect dental practice for you, across the UK. When a buyer makes initial contact with our office, our focus is to get to know them (background, career goals, practice philosophy, personal financial condition, etc.) 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. Welcome to First Choice Practice Sales Inc. PITFALLS TO AVOID WHEN SELLING A DENTAL PRACTICE By Ron Lebow, Esq. 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. Therefore, it is imperative to be educated about the process and employ the services of experienced professionals (McLerran & Associates, attorney, accountant, etc.) 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 … 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. 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. Every contact between buyer, seller and broker, from initial discussion to closing, is an opportunity to lay the … This typically involves meeting the selling doctor, reviewing patient charts and practice reports, inspecting equipment, and consulting with an accountant to evaluate practice financials. The current doctor has a great reputation and is looking to retire. 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. There are countless ways to sell a dental practice. Therefore, we encourage you to contact McLerran & Associates when it is time to start planning the sale of your practice. 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. By taking a more hands-on approach, our team can find a quality buyer in a shorter amount of time. 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. 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. You also will want to coordinate the announcement with the new owner to ensure that you both present an appropriate message. Since 1974, California Practice Sales, Inc., has conducted thousands of dental practice appraisals in Southern California. 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. That includes tangible assets like equipment, inventory, and possibly accounts receivable. Contact us by email at: info@dentaltransitions.com, TREC Information About Brokerage Services. Ensuring that you both agree with the message is important. 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. Unlike a start-up practice, an established practice has … However, that is just the starting point. Assist the buyer with building an experienced team of dental advisors so that he/she is positioned for long term success following the transition. We have found that the emotional process of selling a practice often plays a more significant role than the financial implications. 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 … 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. In an asset sale, the buyer purchases some or all of the assets of the dental practice. Beware of working with a broker who advocates dual representation, in which they represent both the buyer and seller. 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? 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. Home. Dental Office – General Dentistry. The sale of a dental practice is one of the most significant events in your professional career. We require all prospective buyers to sign a Confidentiality Agreement prior to receiving any information regarding your practice. Handle all inquiries from potential buyers and their advisors regarding the practice, including conversations, email correspondence, and showing the office after business 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. 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. 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. 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. Upon agreeing on the terms of the sale, the next step in the process is for the buyer to secure financing. 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. 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. 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. 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. Confidentiality Agreement prior to receiving any information regarding your office a a a a a a a... For your practice transition is unique and presents its own set of challenges to overcome the... 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