Do I need a practice broker in order to sell my dental practice?

No. Many practices are handled by the dentist himself; however, the advantages of using a practice broker are many, and most doctors find that their transition is handled more efficiently by using a broker, and most practices sold by a broker, will bring a more favorable price to the seller, than if handled by an individual with no experience in fine tuning a practice sale.

What can a practice broker do for me?

A broker can find and qualify a buyer to whom your practice may be presented. The broker will help market the practice to potential buyers in a manner that presents the practice in its best interest. Brokers also act as a facilitator in any negotiations which may be necessary in selling the practice, which helps remove the concerns and emotions from the negotiating table. The assistance brokers may provide in the development of contracts, and the consulting processes with attorneys and accountants is invaluable. It is a wise person who surrounds himself with knowledgeable people when dealing in areas he does not fully understand.

How do I know what price to place on my practice?

An appraisal of your practice, by a qualified, independent appraiser, is critical to successful practice sales. Professional Practice Associates, Inc. can help you locate a certified and qualified appraisal firm to help you establish a price that is fair to both the buyer and the seller. "Rules of Thumb" for establishing the selling price of a dental practice are dangerous, because if two practices are producing the same dollar volume, but one has an overhead of 80% and the other has an overhead of 50%, it is obvious that the two practices should not and cannot be sold for the same amount. Lending institutions will not make loans based upon rules of thumb.

How soon should I get started if I want to sell my practice?

If you are reading my web site, then you have already taken the step to begin the investigative process of selling your practice, and I congratulate you for that. I believe that one should begin to think about his own practice transition when he first begins to practice. If you are now at the point where you are considering selling your practice, for whatever reason, then you cannot begin too soon. Selling a practice takes careful planning, and requires good business decisions. The practice brokers of Professional Practice Associates, Inc. can be of great help to you in accomplishing your transition goals, and our PRIVATE consultations, regarding potential practice sales, are absolutely FREE of charge.

Will I have to carry the note myself, for the practice sale?

It is usually not necessary for the selling doctor to be the financier for the practice sale. Professional Practice Associates, Inc. has a good business relationship with many lending institutions who specialize in financing professional practice sales. Many of these companies will carry 100%, or more, of the financing necessary to purchase a dental practice, and will do so with terms which allow the buyer to maintain an effective cash flow.

What are some of the reasons doctors sell their dental practices?

Many doctors simply wish to retire from clinical dentistry, while others may have illnesses or injuries such as arthritis, carpel tunnel syndrome, neurological and visual problems, etc. Some doctors have suffered unfortunate disabilities. The most unfortunate circumstance involves the death of a practicing dentist. The single reason making the most sense, is the recovery of the financial investment one has placed into his business, and to reacquire that investment, while the practice is still operating at its peak performance. This scenario is not only best for the selling dentist, but to the buying doctor as well.

What about a buy-in, or buyout of my practice?

If you wish to continue practicing for a period of time, and wish to slow down and gradually leave the practice, then a buy-in from another dentist may be something for you to consider. These agreements are often stressful for both parties and, unless structured exceptionally well, often create problems. In this scenario, one must be willing to relinquish a great deal of the control he has had in the past, regarding the management of the dental practice. If one is already in a partial sale or associate arrangement, then the buyout is the ultimate goal. The buyout agreement should have been included in the initial contract, but if it was not, then negotiations may be challenging. Professional Practice Associates, Inc. is willing to accept the challenge, and assist in these negotiations.

Should I just hire an associate?

If you wish to continue practicing at a pace close to what you practice now, and you have enough business to support both you and another dentist adequately, then an associate arrangement may be something you should consider. ALL associate arrangements MUST include written plans for a future buy-in and/or buyout of the dental practice, and those details should be clearly spelled out in a contract from the very beginning of the associate arrangement. PROFESSIONAL PRACTICE ASSOCIATE, INC. can assist you in these considerations.

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Do I need a broker in order to buy a dental practice?

No. You may be comfortable with evaluating and negotiating for a practice purchase; however, most dentists who are purchasing a dental practice will take advantage of the services a broker can provide. The brokerage services to "buyers" who are clients of Professional Practice Associates, Inc., will receive the services at NO CHARGE. The broker is retained by the seller, and therefore, receives a fee for his services, from only the seller. We will NEVER accept compensation from both parties in a transaction.

What can a broker do for me as a BUYER?

Brokers make it their business to know where practices are for sale, and they are knowledgeable about interpreting the intricacies of individual practices. This allows the broker to create a better match for the wishes of the buyer, to the things a particular practice may offer. This often creates a much happier dentist, after the sale is completed.

How do I know what is a fair price to pay for a practice?

An appraisal by a qualified independent appraiser is the "gold standard" as a basis for purchase negotiations. I know of doctors who have tried to sell their practices without a broker or an appraiser, and have grossly overpriced or underpriced their practice. Either way, one party to the sale will not be fairly treated.

How soon should I get started if I want to buy a practice in a specific area?

Don't wait until the last minute if you wish to practice in a specific area. There may not be a practice available in the desired area, when you are ready buy. It would be wise to contact PROFESSIONAL PRACTICE ASSOCIATES INC., up to a year in advance of your target date, and give us time to find a practice for sale, assist in negotiations, arrange for any necessary financing, and assist in the closing of the sale. In a "nut shell," it takes a little time to complete the process of finding and purchasing a dental practice. There is NO advantage to being "too late."

How can I get the money to make a large purchase, such as a dental practice?

Professional Practice Associates, Inc. has a good working relationship with many lending institutions who prefer to lend to healthcare professionals. It is not at all unusual, to secure financing for 100%, or sometimes even more, of the purchase price of a dental practice. We will assist you in locating the best terms possible for your individual purchase transaction.

Why shouldn't I open my own dental office, and just start from scratch?

Some dentists will do this, and most will suffer financially for that decision. Research has proven that if one compares a new practice start up with the purchase of a good quality existing practice, over a five-year period of time, the purchaser of the existing practice will have earned approximately $500,000 more than the start up dentist, in the same time frame. Need I say more?

If I buy a practice, can I earn enough to support my family and still retire my note?

Absolutely yes, "if" you purchase properly. Any practice you purchase must prove, by the appraisal, that it will cash flow the financial needs of a buyer. PROFESSIONAL PRACTICE ASSOCIATES, INC. will look at those issues very carefully for its clients.

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