As with any real estate purchase, it’s not a matter of finding a property you want to invest in and purchasing it. There are many steps that happen in between, including competing with other potential buyers. And it’s not always a matter of who has the most money. Here’s what you need to know when competing with an institutional buyer of a dental practice.
Prove your worth
The best way to get to know who you are bidding against in order to come out on top is to understand their strengths and weaknesses, as well as compare how they will be selling themselves with your own value proposition. Then, play to your own strengths and show the seller how you will be caring for their patients in actionable steps in terms of your experience with long-term patients using your CV and letter of intent.
Develop a strong presence on review sites to generate positive awareness so the selling doctor can learn how your current patients see you rather than simply taking your word for it. With all the sweat equity put into building a practice, the doctor will want to sell to someone they like and will trust with their patients. The amount of the offer doesn’t matter as much as the amount of trust a selling doctor has in handing over the reins.
In the end, it’s important to know you won’t win them all. It is hard to compete with groups that allow the dentist to ramp down their time and will pay a substantial premium for the practice. The best thing you can do is to be creative proactively and learn from past deals that fell through. The way you structure a deal can matter, so coming up with unique incentive programs and longer-term payouts can help with the seller’s taxes, in addition to being willing to pay a premium to compete.
Contact the experts at Professional Transition Strategies to find a dental practice for sale in your area.