Why DSO’s Pray You Don’t Hire a Broker
You have been approached by a DSO. They want to buy your practice. If you are the average general dentist, this is happening to you several times per week. If you decide to respond and explore the idea, the DSO will likely try to convince you that you do not need to hire a broker to represent you in the process. "You will save a lot of money by not paying a broker fee," is their primary argument. That is partly true, but what they know–and what they hope you don’t find out–is that, on average,
WHAT IS MY PRACTICE REALLY WORTH?
What is my practice worth? Well, it depends on who you ask. Value is largely a concept of perception. According to the IRS, fair market value is defined as “the price at which a [practice] would change hands between a willing buyer and a willing seller when the former is not under any compulsion to buy and the latter is not under any compulsion to sell, with both parties having reasonable knowledge of the relevant facts.” Although the definition may be stuffy, the concept is sage: the fair m
Timing The Market
Why This Might Be THE Year to Consider Selling Your PracticeAs practice transition specialists, we are often asked “Is now a good time to sell my dental practice?” While many factors are involved in deciding to transition your practice, the short answer is YES. The current practice transition environment features several attributes that are helping to enhance practice value and make it an ideal time to consider a practice sale:1. High Demand – The strong profitability of dental practices and the
The Role of a Dental Practice Broker
Planning to sell a dental practice? Don’t go at it aloneFACT: A dental practice is typically the doctor’s most valuable and prized possession.FACT: A dentist will typically sell a dental practice only once during his or her professional career.Considering these facts, many dentists will make a wise choice and entrust the responsibility of selling their practices to a professional who has the knowledge and experience to facilitate a successful transition … a dental practice broker. In my experien
Keys to Maximizing Practice Value
It’s Never Too Early to Start Planning Your TransitionAs practice brokers, we are frequently contacted by dentists who have an immediate need to sell their practices due to retirement, disability, etc. After meeting with the doctor and reviewing the practice financials, we often find that practice revenue and profitability have declined over the past few years due to various reasons such as the dentist cutting back his work schedule to pursue other interests, not actively marketing the practice
Is Now a Good Time to Sell a Dental Practice?
As practice transition specialists, we are often asked “Is now a good time to sell a dental practice?” While there are many factors involved in deciding to transition your practice, the short answer is YES. The current practice transition environment features several attributes that are helping to enhance practice value and make it an ideal time to consider a practice sale:1. High Demand – The substantial increase in the profitability of dental practices and the poor economic outlook in medicine
Communication is the Key to a Successful Dental Practice Transition
As dental practice brokers, we are often asked “What is the most important factor in facilitating a successful dental practice transition?” The simple answer is: Communication. While it is imperative for the buying doctor to build a strong team of advisors, complete due diligence on the practice, secure financing, and navigate the closing process, all else could be lost if there is no effective communication between the buyer and seller during and following the transition of ownership.As part of
Top 5 Reasons to Hire a Practice Broker
Selling a dental practice is a complicated process. Don’t go at it alone.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. Selling a dental practice is a complicated process that involves numerous steps including determining the market value of your practice, finding the right buyer, negotiating the purchase price, purchase agreement and lease assignment, and facilitating the transition of o
INCREASING YOUR BOTTOM LINE AND PRACTICE VALUE
The most important factors in determining practice value are Current Annual Revenue and Net Cash Flow. Therefore, increasing productivity and improving the bottom line of your practice will increase your income and enhance the value and marketability of your practice when the time comes to sell. Here are a few ways that you may be able to increase production and efficiency in your practice:1. Offer flexible financial plans that allow the patient to pay their portion of the fee with equal monthly
HOW TO IDENTIFY IF AN ASSOCIATE DOCTOR (OR BUYER) IS THE RIGHT FIT FOR YOUR PRACTICE
Most dentists will, at some point in their career, either work as an associate or hire an associate. Consequently, it is a transaction type we deal with often, and one of the most common questions we field on the subject is, “How do we know if there is going to be a good fit between the host dentist and the associate dentist?” It is an excellent question. So let’s discuss some signs to look for and the right questions to ask to determine “the right fit.”You may have heard the saying, “I searched