Steps When Selling Your Dental Practice

Selling your dental practice requires careful planning, but you can get the best price and ensure a smooth transition if you follow a structured process. Whether you are selling to an outside dentist, a business partner, or an existing associate, you must follow many of the same steps. You can reduce the stress involved, ensure negotiations are more effective, and set the practice up for success by simply using the right approach. Below, our dental practice sales attorney explains the basic steps involved.

Obtain a Valuation of the Practice

You must know your practice’s value before you can list it for sale. A professional valuation will consider the profit margins, revenue, condition of the equipment, and the patient base to obtain a fair market price. According to the American Dental Association (“ADA”), current buyers are focusing on recent practice performance rather than how the practice has performed historically. This means that reducing your clinical hours prior to the sale can reduce its final value. To maximize the value of the practice, it is important to keep it thriving throughout the transition.

Gather the Necessary Documentation

Buyers will need a vivid picture of your practice’s operations and financial status. The right documentation can build trust with serious buyers and expedite the process. Some of the most important documents to collect include:

• Production reports that indicate the practice’s performance
• Patient demographics
• Financial statements for at least the previous three years
• Inventory of equipment with details regarding its age and condition
• Real property details or lease agreement detail
• Employment contracts that outline staff stability and the terms of employment

Create a Marketing Plan 

You need the right strategy when developing a marketing plan. While you need to reach serious buyers, you also need to remain discreet to avoid unnecessary disruptions among patients and staff members. Highlighting factors such as patient retention, financial stability, and potential for growth in the future can position your practice well.

Find Serious Buyers

To find the right buyers, you will need to evaluate their professional background, financial capability, and their ability to maintain patient care. Discuss these factors with any potential buyer early on in the process to make sure you find the right fit.

Negotiate

Negotiations are one of the most important and one of the most complex aspects of selling a dental practice. In addition to price it is important to consider staff retention, payment structure, transition periods, and transfers of patient records. Focus on the long-term value instead of just the immediate sale price to obtain a better outcome.

Finalize Legal Documents 

After negotiations, you will need to legally finalize the sale. A dental sale attorney can draft an agreement that includes all pertinent details of the sale, ensure everything is documented and legally enforceable. This can prevent complications once the sale is finalized.

Our Dental Practice Sales Attorney Can Help You Through the Process 

If you are selling your dental practice, you do not have to go through it alone. At AGS Law, our dental practice sales attorney can help you navigate it, find the right buyers, and help you obtain the best possible price. Call us now at 801-477-6144 or contact us online to request a consultation and to get the legal advice you need.

Source:

ada.org/resources/careers/buying-or-selling-a-dental-practice-start-with-an-accurate-valuation