January 25, 2018

Who Can Buy a Dental Practice?

Whether you are graduating dental school, looking for a lucrative investment or leaving a corporate environment, buying a dental practice is an intricate process. While every situation is unique, many buyers have similar concerns. Here are some common concerns of buying a dental practice and who can buy one.

Who can buy a dental practice?

Whether or not you can buy a dental practice depends on in which state you live. At a point in time, most states prohibited corporations from owning dental or medical practices. This came from the idea that only a person who is licensed to practice dentistry or medicine could own a practice. But as time changed, many states moved away from this law. According to this article, “These changes often came at the request of physicians and dentists who wanted to obtain the tax and liability benefits of corporate status for their practices.” So, if you are wondering who can buy a dental practice, first check to see if non-dentists can own a practice in your state.

Your current situation

There are many life factors that play a part when deciding to buy a dental practice. Some of the most common situations that buyers consider are the cash flow necessary to match their current lifestyle, student loans, where the practice is located and how far it is from their current/desired residence. It is also important to consider the gross production of the office, overhead, collections, and patient charts and reports. All these components are important and will affect when and where a practice is purchased.

Patients

Without a doubt, patients are the future of any dental practice. It is extremely important to look at the current patient load, retention rate and the longevity of patient commitment.

Cost vs. return

A qualified dental practice broker will provide you with the information you need to determine if the return of the practice will suit your lifestyle, as well as conduct a practice appraisal to determine fair market value. With financial assistance for purchase and practice upgrades, whatever your financial goals are, there is a practice to match.

What’s next?

If you have any unanswered questions about who can buy a dental practice, contact the experts at Professional Transition Strategies.

January 19, 2018

Step-by-Step Guide to Dental Practice Transitions in Texas

If you are thinking about selling your Texas dental practice, you are probably feeling a little overwhelmed by where to start. After all, this is arguably one of the biggest financial decisions of your life. Here is a step-by-step guide to dental practice transitions in Texas.

Be ready to transition

Your first step is to determine your goals for the sale and what is most important to you. Start by answering the following questions: Why are you considering selling your dental practice? Would it be enough money to retire? Do you need to sell by a specific date? Is it important to maximize your financial return? Or is the most important thing to find a buyer who will keep your staff? Ultimately, your transition goal(s) will steer the transition plan, so identifying the goals of the future sale will help you structure a clearly defined transition path.

Find a consultant

A considerable amount of time and thought needs to be put into dental practice transactions. We have talked to numerous dentists who “read a couple of articles and have a good understanding of the process” and want to do the sale on their own to save money. It is important to get advice from experienced transition brokers and loop them in all of your decisions and discussions pertaining to the sale. Not only can they help you increase the probability of a lucrative transaction, but it’s just nice to have experts on your side to guide you through the process.

Obtain a professional practice valuation

Now that you have transition experts to work with and a goal and transition plan, it is time to determine what your practice is worth. The valuation you obtain should be completed by a broker that understands dentistry and the current marketplace for dental practice sales. At Professional Transition Strategies (PTS), we use the most effective way of calculating the value of your practice by looking at factors like location, growth potential and long-term growth trends.

Structure your ideal transaction

By obtaining the valuation of your practice, you can now determine if you are happy with the value placed on your office. If you are unhappy with it, one option is to work a couple more years to make up the difference. If you are happy with the value, you need to figure out if you want to leave as soon as the practice is sold or if you would like to work as an associate post-sale. But these aren’t your only options. We recommend talking with your transaction broker to find the best fit for your situation.

Market the practice

Once you have your valuation, plan and structure in place, you need to get people looking at your practice. Just like anything, the more people hear about your practice, the better chance you have at selling it. This is where your broker comes in. Practice brokers usually have a great pipeline to sell.

Show the practice to potential buyers

Once you have people interested in buying your practice, you need to get those potential buyers to the bank to see if they qualify for a loan. This way, you aren’t wasting your time and effort showing your office to individuals who can’t get a loan.

Receive offers and negotiations

Once you get an offer, you can accept the terms, counteroffer and begin negotiations, or decline the offer. Each option has different consequences and messages you and your transaction team will have to think through before making any quick decisions.

What’s next?

If you still have questions on dental practice transitions in Texas, contact us.

January 15, 2018

How Do I Sell My Colorado Dental Practice?

Whether you are ready to sell for a personal reason or you want to transition the practice to a partner, you are probably feeling a little overwhelmed by the thought of selling your Colorado dental practice. After all, this is arguably one of the most important financial decisions of your life. Here is a list of steps involved in the process and some helpful tips to get you started on the path to a dental practice transition.

Identify your goal

First, you must identify what you are trying to achieve and what is most important to you. Do you need to sell by a specific date? Is your ultimate goal to maximize your financial return? Or is the most important thing finding a buyer who will retain your staff? While sometimes you will need to compromise, it’s important to know what you won’t negotiate on.

Talk to experts

A considerable amount of thought needs to be put into your efforts of selling your dental practice. Fortunately, you don’t have to take on the challenge alone. The best way to sell a dental practice is to work with an experienced transition broker. Not only can they help increase the probability of a lucrative transition, but they will also decrease the possibility of post-transfer litigation. At the end of the day, an expert will be on your side to address your specific concerns and guide you through the process.

Determine the value of your practice

One of the first things you will do with your transaction broker is conduct a comprehensive practice appraisal. This will determine what your practice is worth and tell you how to maintain its value until you are ready to sell. At Professional Transition Strategies (PTS), we use the most effective way of calculating your practice’s worth by looking at certain factors and their impact on the business. Some of these factors include the location of the practice, growth potential, long-term trends and reason for sale.

Review your options

There are several types of dental practice transitions. Here are just a couple of your options:

Buy-out: This is when the purchaser buys your dental practice for a negotiated price with a relatively short transitionary period. This is the quickest and easiest transition type.
Buy-in: This is when a specific buyer purchases a defined portion of the practice for a negotiated amount from day one. In addition to a practice analysis, PTS will perform a personality profile to ensure compatibility. It’s a long-term approach that can expand your practice’s value.

Merger: This is when two existing dental practices combine to become one entity and operate normally as equal partners moving forward. This is an option that allows net income to stay the same or even improve because there is no loss of business.

What’s next?

If you are still wondering “How do I sell my Colorado dental practice?” contact us today.

January 8, 2018

The Best Way to Sell a Dental Practice

You have likely spent your entire career building a dental practice, but now you’re ready to move on. But selling a dental practice is much more than putting a “For Sale” sign on the curb. Selling your dental practice is one of the biggest moments in your career, and you only have one chance to do it right. Here is the best way to sell a dental practice.

Talk to experts

When determining how to exit your business to ensure you maximize your return on investment, a considerable amount of thought should be put into your efforts of selling your practice. Fortunately, you don’t have to take on the challenge alone.

Ultimately, the best way to sell a dental practice is to work with a highly experienced transition broker. Not only will they increase the probability of a smooth, successful transition, but they will also decrease the possibility of post-transfer litigation. Transition professionals are there to address your specific concerns and guide you through the entire process.

For years, Professional Transition Strategies (PTS) has been a trusted qualified dental transition company.

Ensure confidentiality

Sometimes dentists want to keep the news that they are looking to sell their practice under wraps to avoid alarming employees and patients. This is why we require all parties involved (sellers and potential buyers) to sign a nondisclosure agreement (NDA). Not only does this protect the privacy of the seller, but it also ensures a smooth transition for everyone.

Identify the accurate value of your practice

Because of our extensive portfolio of successful transactions, we are able to be your go-to resource for market insight, location assessment and practice valuation knowledge.

When working with PTS, one of the first steps you will take is to have a comprehensive practice appraisal conducted. This will determine ways to make your practice more valuable and, in turn, more profitable. We use the most effective way of calculating your practice’s worth by looking at certain factors and their impact on the business. Some of these factors include growth potential, reason for the sale and long-term trends.

Call upon past experiences

Our experts at PTS are extremely experienced when it comes to correctly structuring a sale. We have “been there and done that” so we know how to streamline the process. Yet, we recognize not every seller or dental practice is the same. We are able to call upon our past experiences to customize the transition process to best suit your needs.

What’s next?

Overall, the best way to sell a dental practice is to work with an expert transition broker. Our team at PTS is experienced, provides high-quality representation and is here to answer any questions you may have. If you are thinking about selling your dental practice, we encourage you to take a look at our complimentary e-book and contact us at any time.