Steps Involved in a Transition.
- Data gathering and on-site visit.
- Review and completion of the valuation.
- Listing of the practice and direct mail (email) communication with a ready pool of potential buyers.
- Showing the practice to potential buyers.
- Executing an earnest money agreement.
- Due diligence, obtainment of financing and document preparation.
- Closing and funding.
Broker fees vary by organization, state and transaction size. In general, dental practice brokers charge 10% of the purchase price of the practice. This fee is most commonly paid by the seller (from closing proceeds). Likewise, we charge 10% of the purchase price, with a reduced fee provide in unique circumstances.
The entire process ranges from a few weeks to over a year. It is important to consider that this is a long tearm working relationship for a single transaction. Buyers and Seller often need to meet and discuss the philosophy of how a practice should be run. The best fit for a practice will usually be based on the shared values of each dentist.
When to Consider a Transition
While it seems obvious, it is best to sell BEFORE you are ready to retire. This means that the practice is at its highest value. The selling dentist may always continue to practice for the purchaser or even other dentist in the area. However, we have often seen a dentist wait, and wait, many times too late. If a practice is declining, not only will the sale price be less, but it will be more difficult to find a buyer.
In general, it typically takes 2 to 4 weeks to review the seller’s appraisal and evaluate the practice, and then it takes 2 to 4 weeks to negotiate the transaction, obtain funding, draft/review closing documents and close the transaction. Much of this is dependent upon third parties, like other brokers, banks
In many instances one party will not have representation
Selling dental practices for more than 30 years across every region of Texas, including successful transactions in key markets like Houston, Austin, and Dallas.