Dental Brokerage Maryland | Why Hiring a Dental Broker is a Smart Move
Dental Practice Sales & Transitions
A dental broker is a financial professional who will guide you through the process of transitioning into or out of a dental practice. Dental brokers have undergone specialized training to make them experts in the details of buying and selling. They can help you evaluate the worth of a practice, negotiate contracts between buyers and sellers, and be a neutral third party throughout the process.
Our team at Schiff Dental Brokerage can offer invaluable help with your transition by serving as a mediator from beginning to end.
Regardless of whether you are buying or selling a practice, it is important that you have accurate information regarding its current value and potential. If you are the buyer, you want an agreeable price while also knowing the practice’s current financial situation. If you are selling, you want a fair value not just for your tangible assets but for all the hard work and time you have put into building your practice.
Dental brokers look at several factors when they evaluate a practice. Among other things, they will consider:
- The patient base. A large practice will generally receive a higher valuation than one with a smaller base.
- The dental equipment in the practice. Specialized, high-cost equipment will add more to the overall value.
- The dental office team. Brokers will also consider the experience of an office’s team members and any specialized training they have received.
- The location. Location at a busy intersection or along a one-way street, and access to parking, are a few factors a broker will consider in valuing a dental practice.
- Own vs. lease. Owning the building dramatically increases a practice’s value.
- Profit margins. Margins are generally examined from a month-to-month basis.
Negotiations and Contracts
Once the valuation has been performed, the transition process can begin in earnest. If a buyer has not been found yet, a broker will seek one that is the right candidate for the sale. The ideal buyer is one who wants your practice, not just any practice. After both parties have been established, the negotiation process begins. Dental brokers serve as neutral mediators. They will go back and forth between both parties until a formal agreement has been reached. At that point, they will create legal contracts to execute the transition. A broker’s job is to make sure both parties fully understand the terms.
Dental Practice Transitioning
One more way a dental broker can help you is by aiding in the transition itself, after the sale has been finalized. It is vital to minimize disruption for both team and patients.
Dental brokers ensure that buyers have everything they need to be successful with their new practice right away. They will provide an analysis of the financial situation and advise on next steps. For sellers, brokers make sure that all legal obligations are settled.
Buying and selling dental practices involves more than just a building; it involves the heart and soul of the practice, as well, and at Schiff Dental Brokerage, we respect that. Contact our Maryland Dental Brokerage today to find out how we can make a difference in your practice transition.