One major challenge when selling a dental practice to a corporate group is ensuring that the terms of the agreement are fair and beneficial to both parties.
Additionally, maintaining the level of patient care and trust established by the original practice can also be a challenge, as patients may be wary of the changes that come with corporate ownership.
The sale of a practice to a corporate group is often the best way for dentists to realise their full potential and plan for retirement. The problem is that these same corporate groups operate in a specialised market with specific requirements when it comes to adding to their portfolios.
Unless your practice can sell to those groups with the right level of expertise, you may find it difficult to attract clients.
In addition to knowing the market and having relationships with many of these groups, we can help determine if your practice is something they’d be interested in, as well as advise on the process and approach that will help you command the best price.
Selling a dental practice to a corporate group can come with a unique set of challenges. One of the main difficulties is finding the right buyer who will offer a fair price for the practice. Corporate groups often have strict criteria for selecting practices to acquire, and they may not be interested in purchasing a small practice or one that operates in a less profitable area.
Additionally, selling to a corporate group can mean losing control over the day-to-day operations of the practice, as decisions are made by the corporation’s management team. This can be a difficult adjustment for dentists who are used to running their own practice independently. Another challenge can be negotiating the terms of the sale, as corporate groups often have extensive legal and financial resources that can make the process more complicated.
Overall, selling a dental practice to a corporate group requires careful consideration and planning to ensure a successful and beneficial outcome for all parties involved.
When selling a dental practise to a dental corporation, watch out for these mistakes
When selling a dental practice to a dental corporation, it’s crucial to watch out for mistakes such as undervaluing the practice, not negotiating favorable terms, and failing to plan for the future.
Doing it alone
It’s a well-known fact that even the most accomplished individuals have had help along the way. If you aspire to achieve the goal of smoothly selling your dental practice, it’s essential to seek out professional assistance. Consider seeking the input of a valuation expert to ensure that you receive a fair price for your practice. Seeking advice on negotiating the terms of the sale can also prove beneficial.
Additionally, enlisting the help of a professional to assist with legal and financial due diligence can prove invaluable. Don’t be afraid to seek out assistance as it could make all the difference in achieving a successful sale.
Solicitor
When it comes to selling your dental practice, it’s crucial to select a solicitor or firm with extensive experience in dental practice sales. The wrong choice can lead to unnecessary delays and expenses, ultimately resulting in valuable time being wasted. Although some solicitors may excel in other areas, they may lack the specialised knowledge and expertise needed to navigate the complex process of selling a dental practice.
Choosing an inexperienced solicitor could result in increased legal fees and unnecessary due diligence documentation, slowing down the sale and potentially jeopardizing the outcome. To avoid these pitfalls, it’s essential to select a solicitor or firm with a proven track record of success in dental practice sales.
No clear exit plan
After selling your dental practice, you may be tempted to retire or start a new venture, but it’s important to consider your options carefully. Too often, dental principals sell their practice without a clear plan for the future, leaving them unsure of their next steps.
While it may be tempting to sell the property along with the practice, it’s important to remember that a corporate group’s primary interest is not in purchasing property. Keeping the property and operating independently can often yield higher profits. As the owner of your practice, it’s crucial to make your own decisions and not let others dictate your future.
Before putting your practice up for sale, take the time to consider your options and seek the advice of a professional who has helped others make the best choices for their future.
Dental Sales Agency
If you’re considering using a selling agent for your dental practice, it’s important to do your due diligence and speak with multiple agents before making a decision. While some agents may charge a fee upon completion, while others charge the corporate buyer, the fee structure should not be your sole consideration.
You want to work with someone who has a proven track record of success, ideally with experience in buying, selling, and managing dental practices. It’s crucial to select an agent or firm that can provide comprehensive support from all angles, including accounting and valuation services.
Inform all your staff
Selling your dental practice is a significant event in your life, and it’s normal to feel emotional and overwhelmed. One critical aspect of the selling process is informing your staff and associates who work for you. Selling to a corporate group requires special attention to this step to avoid unnecessary stress and uncertainty among your team.
Premature disclosure could result in a loss of trust and revenue, and potential disruption to your operations. At worst, it could create unnecessary costs and risk, something you want to avoid at all costs. A well-planned and executed staff communication strategy can prevent these pitfalls and help ensure a smooth transition for everyone involved.
Conclusion
Selling your dental practice to a corporate business can be an attractive option for those looking to exit or retire due to ill health. Corporate buyers can offer a range of benefits, including a quick sale process, reduced stress, and an opportunity to maximize the value of your practice. However, it’s important to consider the potential downsides, such as losing control over the practice and its operations.
Corporate buyers may have their own agendas and protocols that differ from your own. It’s important to carefully evaluate potential buyers and their offers to ensure that the deal aligns with your goals and values. Additionally, it’s crucial to work with experienced advisors to navigate the complex legal and financial aspects of the sale process and to ensure that you receive a fair valuation for your practice.
Lee Jones is a seasoned Business Finance Specialist with over two decades of invaluable experience in the financial sector. With a keen eye for market trends and a passion for helping businesses thrive, Lee has become a trusted advisor to countless organizations seeking to navigate the complexities of finance.