November 30, 2020
5 Reasons to Use a Broker to Sell Your Dental Practice to a DSO
With an estimated 600 dental service organizations across the country, the number of possible offers for your dental practice can seem exhilarating. However, not all DSOs are created equal, and more importantly, neither are all dental practice transitions. Here’s why to use a broker to sell your dental practice to a DSO rather than trying to navigate the transition on your own.
Brokers will have personal experience with the DSOs. It’s easy for a broker to predict which way the transaction is heading and negotiate accordingly. This is all to say you should use a broker that has experience with dental practices, specifically one that knows and has experience with the different groups.
Brokers will have inside knowledge of the groups that actually practice clinical autonomy. When representing yourself, it can be hard to get to the bottom of each interested party while also negotiating the terms and running a successful practice at the same time.
By having someone act as your fiduciary, you can feel confident your best interests are being represented rather than just the interests of the group. The broker shouldn’t be compensated by any group. While being your advocate in the transaction, the broker shouldn’t have any other skin in the game.
A broker has the ability (and obligation!) to bring your opportunity to several groups that share your values. By creating more demand, you tend to have better negotiating power so that you can expect to receive higher offers and betters terms by the end of the transaction.
Houses are commodities; dental practices are not. Therefore, while you can sell your own house, you need an intermediary to sell your dental practice. Your time is better spent focusing on the well-being of your practice and its employees and patients before hanging up your proverbial hat.
Contact the experts at Professional Transition Strategies for help selling your dental practice to a DSO.