Selling your dental practice can be a significant decision, one that impacts not only your financial well-being but also the future of the patients and staff who have come to rely on your services. The process can be complex, but with careful planning, support, and the right approach, you can achieve a successful transition.
If you’re wondering, “how to sell your dental practice,” this comprehensive guide will provide step-by-step insights to help you navigate the process with confidence and maximize your success.
Prepare Your Dental Practice for Sale
Assemble a Professional Team
Seek the expertise of professionals who specialize in dental practice sales. This team should include a dental practice broker, attorney, and accountant. They will guide you through the complexities of the sale and help you make informed decisions. Hiring a dental practice broker can significantly enhance your ability to market and sell your dental practice, so you can stay focused on providing excellent care to your patients.
Western Practice Sales dental brokers specialize in facilitating the sale of dental practices and bring decades of expertise to the table. We help you take care of:
- Practice valuations and setting the asking price
- Nationwide and regional advertising
- Accountant and attorney referrals
- Handling buyer inquiries and offers
- Facilitating lender requests
- Assisting buyers find financing
- Letters of intent
- Contracts and negotiations
- Opening escrow
- And more!
Assess Your Practice’s Value
The most important factor in determining your dental practice’s value involves your gross collections for the previous few years. Assets, location, your patient base, and goodwill built over the years is also considered, as well as other factors.
Western Practice Sales dental brokers are qualified to help you determine the value of your dental practice. If you are interested in a practice valuation, contact us today.
Advertise Your Dental Practice Sale
When you feel the time is right, the next step is to start generating awareness and exposure for your dental practice sale. In addition to our regional advertising efforts that include emails, social media highlights, and showcasing the practice on our website, we are a proud member of ADS Dental Transitions. This membership allows us to partner with industry experts to extend our powerful marketing mix through additional email lists, online listings, Google search ads, and more.
Handle Buyer Inquiries, Offers and Due Diligence
After a letter of intent is signed, be prepared for the buyer to review your financial and operational records further. Our brokers help save you time by having you submit a practice information sheet at the start of your journey. We also request reports from your dental software, recent tax returns and profit and loss statements. This helps us both prepare to advertise your practice and complete the financial package which will aid in the buyer’s due diligence.
Respond to Lender Requests
Your potential buyer’s lender will conduct research to feel confident that the dental office can support the buyer, their lifestyle, and the practice loan payments. Our team is accustomed to handling these types of requests.
Negotiate the Terms of the Sale
Negotiations will cover various aspects of the sale, including but not limited to the sale price, payment structure, transition period, and non-compete clauses. Be open to compromise and seek win-win solutions. Each deal is different, but we are prepared to handle anything due to our experience from negotiating thousands of dental practice transitions.
Don’t forget to consult with your accountant to understand the tax implications of the sale and plan accordingly. Proper tax planning can help you minimize your tax liability.
Closing the Deal
Once all due diligence is complete and both parties agree on the terms, it’s time to close the deal. This involves signing the agreement, transferring ownership, and completing the financial transaction.
Transitioning the Practice to the New Owner
After the sale, it’s crucial to ensure a smooth transition. Communicate the sale to your staff and train them on how to discuss the transition with your patients in a positive way. It is also beneficial to send a letter directly to your patients to let them know they will be in good hands. Address any concerns they may have and reassure them about the continuity of care.
If you plan to stay on for a while after the sale to help with the transition, continue to offer support and guidance and address any issues that may arise. Open communication with the new owner is key to a successful handover.
Closing the Chapter: A Positive Path to Practice Sale
Selling your dental practice can be a complex and emotional process, but with careful planning, the right team of professionals, and a commitment to ensuring you have chosen the best way to sell a dental practice, you can achieve a positive outcome. By following this step-by-step guide, you can confidently navigate the sale of your dental practice and look forward to new opportunities.