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General | 2.10.2014 | Comments Off

Would you like to know how to save money when selling your dental practice in Maryland, Northern Virginia, D.C., Southern Pennsylvania as well as nationwide?

Keep reading to understand the three major expenses involved with selling a dental practice.

 

The 3 Major Expenses When Selling A Dental Practice

 

Understanding what costs are involved with selling a dental practice will allow you to keep more money in your pocket.  Every dentist wants to save his or her hard earned money, right?

Okay, here are the three biggest expenses you will incur when selling your dental practice.

Expense #1- Attorney Fees

Let me be clear, every dentist that is selling a dental practice should have a competent attorney that has experience with dental practice sales.  It is important for a seller to use an attorney that is knowledgeable about dentistry and the issues that are involved in a dental practice transition.

Again, make no mistake, the issues involved in a dental practice transition are unique and should be handled by an attorney that won’t waste your time and money feeling his or her way through the process.  At the same time, an attorney that has to win on every little issue can end up costing you a lot of money.

Keep in mind that two attorneys are involved in a dental practice sale.  The buyer should have a different attorney advising him or her.

While there are several factors that determine the final attorney fees involved in a dental practice sale, a seller should always ask what the attorney’s hourly rate is.

Keeping in mind that every dental practice transition is unique and the total number of hours can vary, the total cost for a competent dental specific attorney generally costs between 5K and 8.5K.

Expense #2- CPA Fees

Again, it is extremely important to have a CPA that understands dental practice transitions.  A CPA that spends a lot of time advising dentists also will have a better knowledge of the dental business.

A CPA that understands the different ways to allocate the sale proceeds is critical to reducing your tax burden.  This could save you thousands of dollars, so don’t hesitate to ask for help from a CPA that has been involved in dental practice transitions.

The costs for a CPA involved in a dental practice transition generally range from 2K to 3.5K.

Expense #3- Broker Fees

Dental brokers can cost sellers tens of thousands of dollars and therefore this expense should be the most scrutinized by sellers.

A seller should select a dental broker that understands the dental profession from a clinical and business perspective.

Choosing a dental practice broker that understands what makes a practice valuable to a perspective buyer is also important to expediting a successful transition.

A dental broker needs to be able to juggle the buyer’s needs while representing the seller.  The broker also needs to intelligently converse with advisors on both sides of the transaction.

Most brokers charge a commission of 8-10% on a dental practice sale.  A dentist that is selling a practice would be wise to find a competent dental broker that charges a more reasonable fee.  At the same time, the seller should expect the dental broker to deliver the best price and terms possible.

 

So, if you are a dentist selling a practice, keep more money in your pocket by hiring competent advisors at reasonable fees while expecting expertise from those advisors.

Dr. Tom Bonsack, president of MidAtlantic Dental Transitions, is determined to provide extraordinary service to Maryland and other Mid Atlantic dentists while charging sellers a 3-5% commission, about half of what other dental brokers charge!

 

 

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