Choosing the Best Dental Practice Broker

You have spent years building your practice. You invested hundreds of thousands of dollars into your practice. The amount of blood, sweat, and tears you put into your practice is innumerable. Now you’re ready to move into the next stage of your career. You’ve decided a transition is imminent, and you want to make sure your practice is in the best of hands. The question is: “How do I choose the best dental practice broker?”

Consider what you are looking for when trying to determine the best broker for you. Are you looking for the most amount of money you can get for your practice? Are you looking for the best person for your practice, your patients and your staff? Are you looking for a group to affiliate with that has the same practice philosophy as you? Or do you simply just want to throw in the towel and get out as fast as possible?

Before deciding on the best transition type for you or which broker to hire, make sure you know all the facts and all your options. Find a broker who is willing to create a full appraisal or prospectus for your practice at the beginning of the process. The best brokers will provide you with this prospectus with no obligation tied to working with them, nor will they charge you for this service. Without knowing all your choices, how can you make sure you are making the right decision, not just on the type of transition, but also with whom you are working?

What Is a Dental Practice Broker?

A dental practice broker is experienced in guiding you through every aspect of your upcoming transition; from working with you to put your dental practice for sale or buying a dental practice, to bringing on a partner or affiliating with a group. A broker is an industry expert who will walk you through the process, from your practice valuation to the closing.

Two Types of Broker Representation

There are two types of broker representation: single agency and transaction brokers. Single-broker representatives represent either party: buyer or seller. Brokers who operate as transaction brokers represent the interests of both parties but have no fiduciary to either party. Transaction brokerages are the most common for practice transitions. One of the reasons is because they tend to have a significantly more robust list of qualified buyers in their arsenal compared to a single agency representative.

Transaction Brokers Ensure Smooth Transition

Transaction brokers essentially act as referees for the deal. They owe each party the promise of disclosure, confidentiality, accounting and reasonable care. By acting as a mediator between both parties, a transaction broker ensures a smooth transition. The transaction broker will help the seller determine a competitive list price, and help the buyer prepare an offer. They will help facilitate communication between both parties, including coordinating the transaction from the time the offer is accepted to the time it is closed. In addition to marketing the practice, finding qualified buyers, writing the contract to buy and sell, and assisting in negotiating terms, the transaction broker will assist with the closing.

Match Made in Heaven

You did it. You found your broker. You found a team that understands the importance of your practice, that understands your practice is more than just a business; it is your baby. You have spent years of blood, sweat and tears to make it what it is. You have built a strong team that has become family to you. Your patients are more than just charts and names; they are the people who trust you and helped make your practice what it is. Now what?

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Questions to Ask When Interviewing a Broker

Because the sale of your dental practice can be one of the largest financial transactions in your life, you want to ensure you have the right team behind you to make sure it goes smoothly. Following are some questions to ask a prospective broker to help you decide:

  • Do you perform practice appraisals? If so, what is the cost?

  • How accurate are your appraisals?

  • Who do you represent in the transaction?

  • How long are your contracts?

  • What happens if I terminate the contract early?

  • What type of transitions do you mostly perform?

  • How do you typically market practices?

  • How big is your list of current active buyers?

  • Where do most of your buyers come from?

  • How often will I hear from you?

  • Will you be present for my practice showings, or do I have to do them myself?

  • What is your confidentiality policy?

  • When should I tell my staff and patients that I am considering a transition?

  • What is the industry standard commission? What is your commission?

  • When do you get paid?

  • Do you handle the real estate portion, as well as the practice?

  • Do I need outside legal services to write the contracts?

  • What services will you provide?

  • What happens if I don’t want to accept an offer that I receive?

  • Can you provide me with referrals?

The Good, the Bad, and the BEST Dental Practice Brokers

The best brokers won’t lie to you to get you to sign with them by inflating the price of your practice, then decreasing it once they have you locked in. The best brokers will be honest and straight-forward with you from the beginning, ensuring you know what is realistic and achievable. The best brokers will work hard for you. They will be proactive when it comes to marketing your practice and getting it in front of qualified buyers. They won’t post it on a handful of generic sites and wait for the phone to ring. They will be active and go out to find interested parties and hopefully present you with several offers to consider. The best brokers will also keep you informed throughout the entire process, instead of only calling you about a showing. They will be in touch on a regular basis to make you aware of the number of inquiries for your practice, the number of non-disclosures signed, the number of prospectuses sent and reviewed, the details of the conversations held, etcetera.

Contact the Experienced Team at Professional Transition Strategies Now

To learn all of your options and get all of the facts, contact the team at Professional Transition Strategies. Having completed thousands of prospectuses and close 500 transitions, PTS will provide you with the information you need to get started thinking about your upcoming transition – even if it is five years down the road!

Contact Professional Transition Strategies Today

There are many moving parts to a practice transition. Instead of going it alone and attempting to juggle all the pieces, concentrate on maintaining the value of your practice look to Professional Transition Strategies to get you the most out of your practice and making the transition a success.

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Completed 350+ Transitions in 37 States