December 14, 2017

Common Concerns When Selling a Fertility Clinic

The process of selling a fertility clinic is intricate. Not only does it include financial challenges, but emotional ones, as well. Fortunately, our brokers at Professional Transition Strategies (PTS) are here to help you navigate this process, starting with addressing your concerns. Here is some more information on common concerns when selling a fertility clinic.

How does the process work?

The most common concern that doctors have when thinking about selling their clinic is fear of the unknown. There are many moving pieces to consider. For example, the cost of the clinic, the future and well-being of the staff and patients, how long it will take to sell the clinic, and whether selling is even the best decision.

That’s why we do what we do. We are here to guide you through the entire transition process, from appraising to the final paperwork. We can help you navigate through this process because we have been there and we know what needs to happen for a smooth, successful transition. Most importantly, we recognize every situation is unique, and we will help you decide which option is best for you.

What will happen to my staff and patients?

The future of staff and patients is another top concern doctors have when selling a fertility clinic. Many doctors have developed long-term relationships with their staff and want to make sure everyone is taken care of. Similarly, you want to make sure future patients are receiving the same level of patient care you provided.

Though we cannot guarantee that your staff will remain employed by the future buyer, we do instruct buyers to not make any changes in the clinic for at least six months. Not only does this give employees a chance to “win” their jobs, but they also have time to look for employment elsewhere. Please know we understand the future of your staff and patients is important to you so we will do our best to help manage this transition.

Should I sell my fertility clinic?

As doctors grow older, needs and circumstances change. And as their biological clock winds down, capabilities and stamina also change. Change can be stimulated by divorce, disability, IRS judgments or just being burned out. Either way, you need to set the sale of your clinic as a carefully planned event. If a personal crisis were to dictate the sale, it becomes more difficult with the greater risk of lost revenue.

It is also important to sell before your clinic declines in income, patients or revenue. Not only is this a red flag to buyers and financial institutions, but it could also negatively affect your clinic’s selling price. This is why we recommend planning early so you can control the outcome. The longer you wait, the opportunity to plan and direct the course of the sale diminishes.

What’s next?

Regardless of where you are in the selling process, we are here to help. Please feel free to contact us anytime.

December 6, 2017

6 Questions to Ask When Buying a Dental Practice

At Professional Transition Strategies (PTS), we have successfully guided hundreds of dentists through the process of selling and buying a dental practice. If you are thinking about buying a dental practice, you will naturally have several smart questions. Here are questions to ask when buying a dental practice.

What should I consider when buying a dental practice?

First, consider where you want to live. Be specific about where you want to live and how far you are willing to commute to work.

Second, think about the kind of dentistry you want to practice and income you want to make. Consider the income that would fund your retirement and support a comfortable lifestyle. Don’t forget to factor in your expenses, such as student loans, mortgage, car payments, insurances and any other family-related expenses.

It is also important to consider the gross production of the office, collections, overhead, location, and patient charts and reports.

Will you retain the services of the current dentist?

Selling dentists are typically willing to stay on for a period of time to assist with the transition, introduce you to patients and referring doctors, and help you understand the processes of the office. However, you don’t want them to stay around for too long as their presence could interfere with you making the practice your own. We generally recommend no longer than six months.

Is it in the right location?

A key point to consider when looking to buy a dental practice is the demographic profile of the area. This includes household income, number of residents per dentist and number of competing dentists. All these factors will directly impact the practice’s growth potential. Other location-based factors include visibility (pedestrian and vehicular traffic to get new patients) and the proximity to your home.

What type of dental work is performed at the practice?

From general dentistry to pediatric to endodontic to periodontic, it is important to know what type of dental work is performed at the practice you are interested in buying. Similarly, it is important to look at if the hygiene department is underdeveloped. Practices with underdeveloped hygiene departments give you the chance to increase profitability by shifting hygiene work to a hygienist. This allows you to focus on higher-margin dental work. Further, in practices where dentists regularly perform low-end dental work, there is a big opportunity for the incoming dentist to increase revenue by performing higher revenue-generating dental work. Of course, opportunities like this depends on your dental experience and expertise.

Do the clinic’s hours suit my needs?

It is important to consider the number hours necessary to operate the clinic, as well as whether that schedule suits your lifestyle, especially if you have younger children.

Will the sellers’ staff and patients stay in a transition?

It is very beneficial for the staff to remain in their jobs during a transition. It is equally important that the purchaser wants the staff to stay. With a proper transition, patient retention is in the mid- to high 90% range for transitions handled by experts, such as those at PTS.

What’s next?

Buying a dental practice is an intricate process, and it is very beneficial to work with an experienced transition company. Contact us anytime.