March 7, 2020
Dental Practice Transition Case Studies, Part 1
Entering into a dental practice transition can be a time of uncertainty for all parties involved. That’s why it can be good to hear from those who have been there and done that. From time to time, we plan to post case studies of past clients to help put you at ease. Here, we feature single practices sold to individuals. Keep checking back for more to come.
Owning your own business and, in turn, selling one after putting your heart and soul into it can come with a lot of uncertainty. A single-practitioner office in Austin, Texas, went under contract within three weeks. What’s more, it sold at fair market value to an individual. Having a prospectus in place will help you assess the fair market value of your practice before entertaining offers.
A single practitioner in Denver, Colorado, was interested in selling their satellite office to concentrate on the primary location. While dental practice transitions can take up to five years, the practice went under contract and closed within three months. Having the practicing doctor stay on to ease the transition can lead to higher attrition rates, but per the seller’s request, they exited immediately.
Santa Rosa, California
This two-doctor practice near the Bay Area in California employed an associate who did not want to own equity within the practice. After all, when selling to a partner with whom you’ve never worked with an arrangement to buy in at a later date, the results are predictable — a 20% success rate, in fact. However, the practice sold for the appraised value, was funded 100% by a recommended bank, and the associate decided to stay on with the practice to allow the selling dentist to start a new career in a different field.
For more case studies, keep checking our blog. Or, contact the experts at Professional Transition Strategies to hear more stories like yours.