November 1, 2019
Single Agency Versus Transaction Dental Practice Broker
By now, hopefully you know hiring a broker to sell your dental practice goes without question, and even how to choose one that is a good fit for you and your situation. But did you know that there’s not just one type of dental practice broker? Read on to decide whether your practice is worthy of assistance from a single agency versus transaction broker.
Single agency broker
Brokers who are single representatives can act on behalf of either the buyer or seller. A single agency broker tends to have fewer qualified buyers in their arsenal since they only work with one party. Unlike a transaction broker that acts as a referee throughout the process, a single agency broker has a fiduciary toward the buyer or seller. Along with disclosure, confidentiality, accounting and reasonable care, a single agency broker also owes the client obedience and loyalty.
A transaction broker who represents both parties owes each party the promise of disclosure, confidentiality, accounting and reasonable care while having no fiduciary in the game. Acting as a mediator between both parties, a transaction broker ensures a smooth transition will take place. The transaction broker will help the seller determine a competitive list price, as well as 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, they will also assist with the closing entirely.
Contact the experts at Professional Transition Strategies to learn more about why a transaction broker is right for your dental practice transition.