Generally, when a seller attempts to sell a practice, it takes longer than working with an established, full-service dental broker. A dental broker knows all the steps and has the experience to expedite the sale.
A dental practice broker helps dentists sell their practice in numerous ways. They provide real value so you can get through the process of selling your dental practice and reap the rewards of the next chapter in your life. Read on to find out how a dental practice broker helps to keep the sale of your practice on track.
What Hurdles Do Dentists Selling Their Own Practice Face?
If you’re trying to sell a dental practice on your own, you will probably face a lot of challenges. Most of these center around the time it takes to complete the sale. For one, and maybe the most important, there is dealing with a buyer you’ve never met before and haven’t had the chance to vet. You don’t know what their qualifications are or if they’ve even been pre-approved by any bank. These questions can lead to delays in the selling process and time is money, as the saying goes.
Another challenge is the buyer will want to see all financial reports, records and dental statistical reports before entering the office. Some of these documents include business tax returns, profit and loss statements, leases, payroll records, procedure code analysis by ADA code and procedure code by the provider. This means you must retrieve all of these documents while seeing your patients and maintaining your practice.
The last big challenge is knowing the right professionals to help you sell your business. For example, if you choose a general attorney, it will lead to complications and lengthen the process of selling the dental practice as they won’t be versed in the nuances of the process. Working with unspecialized banks and CPAs also draws the process of selling your practice out.
How Does A Dental Practice Broker Help With All Of These Challenges?
A dental broker can help expedite the retrieval of all documents rapidly thereby reducing the length of time it takes to sell a dental office. A dental broker helps expedite the entire process of selling a dental office, saving you a lot of time and aggravation.
Knowing the best dental attorneys, dental banks and dental accountants is another way a dental broker assists in the sale of your practice. One of the first important steps is for both the buyer and seller to engage the services of an experienced dental attorney.
It is preferred that the buyer utilize one of the well-known dental banks that have been in this arena for a long time. Once you establish a relationship with an experienced dental attorney and dental bank, the process will be expedited. Every dental practice sale will encounter hurdles and delays because of all these moving parts. Hiring a dental practice broker facilitates the relationships between the parts so you don’t have to.
They also reduce the time it takes to sell the practice by having our accountants speak directly to the seller’s accountants and expedite the retrieval of all financial documents as well as the required dental statistical reports.
How Long Does It Usually Take To Sell A Dental Practice?
The average practice sale may take approximately six to nine months to close, although we have had sales that have taken as much as two and a half years and as short as twenty-eight days for completion of the entire process.
You must also consider that, although a letter of intent may have been submitted for a particular practice, up to forty percent of the time the deal simply does not go through to the closing table for various, unforeseen reasons. You would then have to start the process over again, potentially with significant delays as previous information submitted would have to be revised or updated.
What Are The Most Common Delays In The Sale Of A Dental Practice?
Various reasons could delay the sale of a dental practice. Sometimes it’s cold feet on the part of the buyer or seller. Other times landlords are incredibly difficult to work with, especially in New York City. The landlord might prefer the dentist to never sell the practice because they benefited from the arrangement with the seller. Rarely do we run into financing problems for the buyer unless they choose a non-dental bank
If the buyer or the seller does not retain a dental attorney, it can often lead to complications and lengthen the time involved in selling the practice. The general attorney is not accustomed to the terms in our contracts such as restrictive covenant, redo policy, proper allocation of the purchase price, work in progress, etc.
Why Trust The Professionals At Healthcare Practice Sales LLC?
When you work with Healthcare Practice Sales LLC, you utilize our 25 years in owning and managing dental practices and our over 10 years of dental practice brokerage experience. We are one of the only dental practice broker firms that have two CPAs on staff to assist you in the process at any time.
We attempt to set realistic goals for both the buyer and seller. Because we have two CPAs on staff, we are intimately involved in every moving part of the transaction and all the communication with the attorneys and the buyers and sellers. We have a catalog of prescreened buyers waiting for the next great opportunity. This saves you a significant amount of time.
There are multiple roadblocks you’ll encounter in the sale of a dental office. We are here to help expedite the process and move the deal to a successful closing in as short a period as possible. We are at your service 24/7 363 days a year. Please contact us today at 201-663-0935.
