A Guide for Dental Practice Buyers and Sellers
Your best guide for buying or selling a dental practice isn’t words on paper; it’s the competent presence of your First Choice Practice Sales Broker. Although First Choice Practice Sales Brokers generally represent the seller, the buyer also reaps the benefits of expert guidance. A practice broker provides vital services for both parties and acts as the “glue” for holding together the pieces of the practice sale process. Here’s how a First Choice Practice Sales Broker will work with both the dental practice buyer and dental practice seller:
The First Choice Practice Sales Broker and the Seller
When it comes time to sell, one of the best decisions a dentist can make is to continue managing his or her practice efficiently (and profitably), while depending on the services of a First Choice Practice Sales Broker to orchestrate the steps of the sale. To make the seller’s job easier and more effective, the practice broker will . . .
. . . Prepare a marketing strategy and offer advice about essential marketing tools, such as a practice description memorandum; in fact, the dental practice broker will help the seller in all key aspects of presenting the practice as effectively as possible. Later, the broker can also help in the structuring of the sale transaction.
. . . Advise the seller on pricing. The practice broker is an expert in placing a realistic price on the practice and incorporating intangibles; thus reducing the danger that every seller fears, under-pricing the practice. At the same time, the practice broker can help the seller to understand that the selling price is dictated by the marketplace and the practice’s actual financial performance.
. . . Determine the right buyer for a particular practice. For locating and qualifying prospective buyers, a practice broker uses computerized databases to access comprehensive lists of local, national, and international buyers –all to increase the chances of selling a practice at peak value.
. . . Present offers and point out both strengths and weaknesses. The practice broker will be a vital advisor during most stages of the negotiation, bringing to “the table” objectivity as well as negotiation skills developed through years of experience in the buying and selling practices.
The First Choice Practice Sales Broker and the Buyer
During a preliminary meeting the broker will typically ask the prospective dental practice buyer questions such as these:
1. Are you pre-qualified by a lender to obtain the necessary funds to buy a practice?
2. What is your time-frame for buying a practice?
3. What are your expectations about the purchase of a practice?
After this fact-finding meeting, the broker can then show the buyer dental practices that are feasible fitting the buyer’s requirements and budget. Further steps the broker will lead the buyer through are as follows:
• Since sellers are (rightly) concerned about confidentiality, the broker will ask the prospective buyer to sign a non-disclosure or confidentiality agreement.
• The broker will provide the prospective buyer with preliminary information, practice profiles about one or more practices, including pertinent financial data.
• The broker will arrange for the buyer to see practices of interest.
• Once the buyer has indicated strong interest in a particular practice, the broker can then supply additional information and schedule further on-site appointments.
• When the buyer is ready, the practice broker will be the best source for answering questions, addressing concerns, resolving loose ends and offering a practice broker’s unique expertise in the practice sale transaction.
Learn more about the First Choice method by contacting us today!