… 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. Here are our primary responsibilities as your practice broker: As you can see, our team plays a vital role in the transition process. 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. 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. 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. 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 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. We have found that the emotional process of selling a practice often plays a more significant role than the financial implications. The sale of a dental practice is one of the most significant events in your professional career. Find the perfect dental practice for you, across the UK. California Practice Sales, Inc., provides nine-page written appraisals of dental … 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. 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. 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. Asset purchases can also … 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. How strong is my emotional connection to my practice? 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 navigating the financing process, the buyer will also be completing their due diligence on the practice. H… Provide draft contracts including the Letter of Intent and Asset Purchase Agreement. 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. That includes tangible assets like equipment, inventory, and possibly accounts receivable. Send them a letter -- or an e-mail if they have stated that as a preference -- announcing that you've sold the business. Maryland – Established Periodontal Practice for Sale. 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. Gather your employees and tell them of the sale. 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. Beware of working with a broker who advocates dual representation, in which they represent both the buyer and seller. We require all prospective buyers to sign a Confidentiality Agreement prior to receiving any information regarding your practice. 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. Patient confidential information constitutes Protected Health … 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. However, that is just the starting point. The opportunity to sell a practice reflects the culmination of years of hard work and one of the most satisfying moments of 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. 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. Further, this practice … This contract circumvents the current … 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. Selling a dental practice starts with assessing the value. 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. 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. You will want to make sure employees, key customers and suppliers learn 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. and determine what type of opportunity they are looking for. 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. You will want to make sure employees, key customers and suppliers learn of the sale before the general public. Involvement in the Local Dental Community. Home. Therefore, we encourage you to contact McLerran & Associates when it is time to start planning the sale of your 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. Also explore buying an ad with local media to announce the sale and thank the community for its support. By taking a more hands-on approach, our team can find a quality buyer in a shorter amount of time. The sale of a dental practice is one of the most significant events in your professional career. Announcing the sale of a dental practice -- or any business that deals with multiple members of the public -- takes planning and coordination. If handled properly, it should be a rewarding and profitable transaction for all parties involved. Common valuation methodologies: 1. 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. Generating Approximately $2.5M in Average Annual Revenue. DENTAL PRACTICES FOR SALE Find your perfect practice from our listing of dental practices for sale. 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. Average annual earnings Typically, historical financial information of the practice is utilized to produce the calculated value under these scenarios. These emotions can be even more intense for those doctors who do not have other interests or hobbies outside of practicing dentistry. Plan ahead for what you want to say to your employees, and be prepared to answer questions. Once you have selected a transition strategy and prepared your practice for sale, you are now ready to initiate the transition process. 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. This typically involves meeting the selling doctor, reviewing patient charts and practice reports, inspecting equipment, and consulting with an accountant to evaluate practice financials. 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. 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. A full service transition firm staffed by industry experts. 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. 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. It was a pleasure to have such a … 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. 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. 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. 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. It is important that a dental practice valuation is performed by an experienced professional to ensure it is thorough and accurate. My PARAGON consultant was exceptionally helpful throughout the entire process. 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. Make sure your staff is prepared to answer questions when patients come into the office. Young … 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. Involve the new owner in all of the details of announcing the sale. Google Rating. 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. 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. Visit Frank Taylor Associates’ website and view our extensive list of dental practices for sale. Selling a dental practice is an emotional process for any doctor because of the relationships developed with their patients and staff over the years. 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. 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. 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. You don't want employees to learn of the sale from people outside the business. Selling a dental practice might be the single biggest decision of your professional career. Utilizing different methodologies builds confidence in the end value and identifies outlying financial or practice data that may cause a deviation. As a dental office, you should have easy access to the addresses of your patients. Welcome to First Choice Practice Sales Inc. 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