Contact Us

General | 6.8.2014 | Comments Off

 

As I meet and speak with dental practice sellers in the MidAtlantic area, I am asked common questions about selling a dental practice by concerned sellers.  This article, “Top Ten Questions asked by Dental Practice Sellers” is the beginning of a series of articles I will be posting about selling dental practices.

This article is meant to outline and briefly comment on issues involved with selling a dental practice.  I will comment in much more detail in weekly articles to follow.

Also, I will be concurrently writing an article “Top Ten Questions asked by Dental Practice Buyers”.  I hope both articles will be helpful for sellers and buyers of dental practices.

So…  Here we go…

 

Top Ten Questions Asked by Dentists That Are Selling Their Practice

 

1. When do I know I am ready to sell my dental practice?  The answer to this question involves your health, age, psyche, tolerance, finances and your future plans.  I will say this, just like a professional athlete who wakes up one day and says “I’m done”, you will know!

2. How much is my practice worth?  This is the million dollar question, no pun intended.  A dental practice value can be determined in a multitude of ways taking into account many factors.  For now, I will keep it simple and say your market, location and cash flow.

3. What does it cost a dentist to sell a dental practice?  When selling a dental practice, a dentist will incur costs from attorneys, accountants and consultants/brokers.  Knowing what a fair fee is and choosing competent advisors for the dental practice sale is critical.

4. Do I need current technology to sell my dental office?  The short answer is no, but having digital films and other up to date equipment can be helpful.  It’s important to understand the timing of buying dental equipment before a sale.

5. How long will it take to sell my dental practice?  This is a great question!  Let’s just say I have had a signed LOI within one week and in another case it took a year and a half.  Every situation is unique.

6. Are there steps a dentist can take to help sell their practice easier?  Absolutely!  What you can do to make it easier to sell your dental practice and when you do it is critical.  Ideally, steps should be taken several years before the practice sale.

7. How much do I pay in taxes when I sell my dental practice?  This involves the allocation of the dental practice sale, among other things. Negotiating the allocation of the dental practice sale is just one step in the process of selling your dental practice.

8. Does a seller need to finance the dental practice sale?  It depends on the selling price and the financial health of the buyer and the practice for sale.  Under most circumstances a dental practice sale is 100% financed by the bank.

9. How long does a seller of a dental practice stay on after the sale?  Sellers of dental practices all have different desires, not to mention the buyer’s needs.  Whether a seller wants to stay on to work as an associate or prefers to leave as soon as possible, the details will need to be worked out for a successful transition to take place.

10. What does a seller tell staff and patients during the practice sale?  Before the documents are signed, a seller of a dental practice should not tell staff or patients about the impending sale.  The consequences can be devastating and counterproductive.

 

There are many other questions that I have been asked by dental practice sellers, but these are my top ten.  Look for future articles with even more details about selling a dental practice as well as “Top Ten Questions asked by Dental Practice Buyers”.

If you are a future seller or buyer of a dental practice and you want a question answered, feel free to call or email Dr. Tom Bonsack at 410-218-4061 or Tom@MidAtlanticDentalTransitions.com

Comments are closed.