California Practice Sales, Inc., provides nine-page written appraisals of dental … Capitalized excess earnings 2. Further, this practice … Utilizing different methodologies builds confidence in the end value and identifies outlying financial or practice data that may cause a deviation. Upon agreeing on the terms of the sale, the next step in the process is for the buyer to secure financing. When you sell a dental practice, maintaining confidentiality during the transition process is extremely important. FACT: A dental practice is typically the doctor’s most valuable and prized possession. 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. Also explore buying an ad with local media to announce the sale and thank the community for its support. 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. 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. Annual net receipts 4. Beware of working with a broker who advocates dual representation, in which they represent both the buyer and seller. Google Rating. Assist the buyer with building an experienced team of dental advisors so that he/she is positioned for long term success following the transition. Patient confidential information constitutes Protected Health … 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. As previously mentioned, selling a dental practice is a complicated process which extends far beyond simply finding a buyer and closing on the sale. You will want to make sure employees, key customers and suppliers learn of the sale before the general public. Since most buyers will require 100% financing, it is important for your buyer to work with lenders who are familiar with dental transactions. When announcing the sale of a business, timing is important. That includes tangible assets like equipment, inventory, and possibly accounts receivable. 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. Common valuation methodologies: 1. 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. Contact key suppliers. We require all prospective buyers to sign a Confidentiality Agreement prior to receiving any information regarding your practice. 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. 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. Most calculations of value utilize multiple valuation formulas averaged together to arrive at a final estimate. 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? 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. 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. 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 … 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. 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. Generating Approximately $2.5M in Average Annual Revenue. 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. 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. If handled properly, it should be a rewarding and profitable transaction for all parties involved. Ensuring that you both agree with the message is important. Dustin Hill is the former owner and publisher of a Midwest business journal and has been reporting on small business since 1992. Therefore, we encourage you to contact McLerran & Associates when it is time to start planning the sale of your practice. 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. 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. If you deal with a large number of suppliers, a letter alone is appropriate. ), 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. Asset value 3. Plan ahead for what you want to say to your employees, and be prepared to answer questions. 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. FACT: A dentist will typically sell a dental practice only once during his or her professional career. Maryland – Established Periodontal Practice for Sale. Doctors who are preparing to sell a dental practice often ask us what our role in the process will entail. 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. 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.) 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. 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. The reason for this is simple: to protect the goodwill of the practice. The most valuable type of dental practice continues to be orthodontics at 79.81% of collections. • 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 Assist the buyer with securing practice financing. Young … 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 … Welcome to First Choice Practice Sales Inc. 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.). Involvement in the Local Dental Community. 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. In an asset sale, the buyer purchases some or all of the assets of the dental practice. At McLerran & Associates, we require all potential buyers to complete a confidentiality agreement prior to receiving any information regarding your office. 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. 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. 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. Asset purchases can also … 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. Unlike a start-up practice, an established practice has … Selling a dental practice is an emotional process for any doctor because of the relationships developed with their patients and staff over the years. 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. One of the most overlooked part of the Dental Practice Sales process is the sales negotiation. 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. 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. It was a pleasure to have such a … 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. 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. Here are our primary responsibilities as your practice broker: As you can see, our team plays a vital role in the transition 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. 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. 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. My PARAGON consultant was exceptionally helpful throughout the entire process. Announcing the sale of a dental practice -- or any business that deals with multiple members of the public -- takes planning and coordination. What interests or hobbies do I have to keep me busy following the sale? The sale of a dental practice is one of the most significant events in your professional career. Buyers are especially interested in a fair answer to this question as … The next step is to find the right dentist for your practice. 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. Find the perfect dental practice for you, across the UK. When buying or selling a dental practice, a key question to accurately answer is: How much is my dental practice worth? 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