Buying or selling a dental practice is a significant undertaking. It can be overwhelming for most doctors because they only buy or sell a practice once in their career. As a seller, your experience from when you purchased your practice will be significantly different from what a buyer experiences today, whether you purchased your practice five, 10, or 30 years ago. Conversely, buyers today face a myriad of challenges in the post-COVID 19 market. This article will look at what an ADS Transitions consultant brings to the table during a dental transition from the perspective of a seller looking to retire and a buyer purchasing their first practice.
When the time comes to sell your practice, you will want to ensure that you have a team in place to support you through every step of the process. Ideally, you will have consulted a financial planner a few years prior to ensure that you are financially prepared to retire, and you have prepared mentally to step away from owning a practice. You should also have a plan to remain productive and busy in retirement. Once you have reached this point, you should be looking to expand your team. This is where an ADS Transitions consultant can assist you.
The ADS consultant can be considered the quarterback of your team throughout the sale of your practice. When you begin the process, the consultant will review all the steps involved. Your team should include an accountant and lawyer who ideally will have prior experience in the dental industry. Your ADS consultant can provide recommendations as well, and will also let you know at what stages to get other team members involved.
As you work through the process, the ADS consultant will initially collect a significant amount of information about your practice and ask many clarifying questions. He or she will recast your financials to determine your practice profitability, and then work with you to determine an appropriate selling price, factoring in several variables relevant to your local market. The next step is to market the practice on the ADS Transitions website, as well as the consultant’s local channels and network. As prospective buyers express interest, the consultant will arrange appointments for the buyer to meet with you and tour your practice, with the goal of eventually negotiating an offer. Once an offer has been agreed upon by the seller and buyer, the consultant will work with the seller’s counsel to review the Agreement of Sale and help keep the process moving efficiently toward a closing.
Other Ways a Consultant Helps You
An ADS Transitions consultant can help a buyer in various ways. If a prospective buyer is interested in an ADS listing, the listing consultant can provide additional information, arrange an office visit, and answer additional questions the buyer might have. Alternatively, if the buyer is interested in a practice listed by a non-ADS consultant, they can act in the role of a consultant for the buyer, reviewing information about the practice and offering guidance. Also, ADS consultants can provide financing options and contacts to lenders that specialize in dental industry financing.
Once an offer is made and accepted, contracts are drawn up for the practice and real estate (if involved), and as closing approaches. There are many final steps that the consultant can assist with. Patients will need to be informed after the closing takes place, and letter templates can be provided that can be customized specifically for the buyer and seller. Effectively communicating with staff is another critical area that the consultant can assist with later in the process. And, from the buyer’s side, the consultant can provide resources to help with credentialing, which can be a very time-consuming process.
There are many valuable services that an ADS Transitions consultant can bring to a transaction for both a seller and a buyer. To find out more, visit our dental broker directory to locate your local consultant and schedule an appointment to discuss your situation further.
Kevin Cooper, MBA, is a practice broker at American Practice Consultants and a member of ADS Transitions.
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