Things To Ask A Dental Practice Broker Before Selling
Selling your dental practice can be daunting—that’s why a dental practice broker is there to help. However, it is likely that you will have some concerns and questions prior to selling your dental practice. ADS Transitions has provided a list of the five most crucial things all dentists should ask prior to selling their dental practice. It is important to be well equipped and well education about the process in order to obtain as much value as possible from the sale!
Question 1:What’s The Value Of My Dental Practice?
First and foremost, the question you will want answered has to do with the value of your dental practice. There are many things that will go into the valuation of your dental practice, but a good dental practice broker should focus on valuing your practice by reviewing the past three years of financial information. Looking at the financial records over a long period of time is crucial because there can obviously be highs and lows throughout the history of your dental practice. A buyer will want to know what to expect on average for the practice, so a good broker needs to figure out that information from a careful review of your financial records.
Question 2: What Can Increase Or Decrease The Value Of My Dental Practice?
There is much more to valuing a dental practice than just the financial records. For example, there are many factors that increase or decrease the value of your dental practice—so you’ll want to get in touch with the dental broker and ask him this in order to again maximize profits. For example, new equipment or aesthetic changes can result in an increase in value, but it can also be a decrease in value depending on the current state of your offices—as the changes might not justify a true return on the investment. Each practice is different, so yours will need to be appraised accordingly.
Question 3:Will My Staff Stay With The Practice During The Transition?
You’ve no doubt built a good relationship with all of your employees—so you’ll likely wondering what will happen to your staff after you sell your practice. Many staff members often worry about whether or not they’ll be keeping their jobs during the transition. It is important to implement a transition strategy with the dental practice broker to ensure that your staff is fully aware of the situation—so that the buyer and the staff can make the right decisions regarding employment at the practice.
Question 4:Will My Patients Stay With The Practice?
The buyer wants to be ensured that all your current patients stay with the practice once the transition occurs—so this is an important question to ask. The dental broker can offer tips on how to calm the nerves and address any concerns your patients have regarding the transition. This is a crucial part about your valuation, so your endorsement along with the enthusiasm of your staff will go a long way for patient retention.
Question 5: What Will The Transition Process Look Like?
Finally, even before a buyer is found, you will likely want to know what the transition process between the current operations for your dental practice and the new operations will be like. While it is true that the buyer has incredible influence on it, you’ll at least want to team up with the dental practice broker to determine the basics of the transition process. Generally, a framework is created that includes the price, when you’re looking to close the deal, and other crucial factors along with readying the proper legal documentations and educating the staff and clients about the changes.
We also have some tips on ways to quickly improve the value of your practice
Before selling your dental practice, it is crucial that you get in touch with a dental practice broker. ADS Transitions can help you achieve the maximum amount possible for your dental practice as well as provide you the best customer service possible. If you have any questions for us or if you need help buying or selling a dental practice, please talk to us today! We’re here to help you with your career and retirement plans.