Towson Dental Brokerage | How a Dental Broker Can Help You
Dental Practice Sales & Transitions
A dental broker is a financial professional that will help guide you through transitioning into or out of a dental practice. Dental brokers have undergone specialized training to make them experts in the transition process. This includes the ability to 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 in Towson can help you with your transition by serving as a mediator from beginning to end.
Regardless of if you’re buying or selling a practice, you need accurate information regarding the value of the business. If you’re the buyer, you want an agreeable price while also knowing the current financial situation. If you’re selling, you want a fair value not just for the tangible assets but for all the hard work and time you’ve put into building your practice.
Dental brokers will take a look at a number of factors when they evaluate a practice. Among other things, they will take into account:
- The dental equipment in the practice. Specialized, high-cost equipment will add more to the overall value.
- The patient base. A practice with a large patient base will generally be valued higher than one with a smaller base.
- The dental team. Brokers will also take into account how much experience team members have and any specialized training they’ve received.
- The location. Owning the building dramatically increases a practice’s value.
- Profit margins. These are 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 that wants your practice, not just a 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 formalize the transition. Brokers will ensure both parties understand the terms of the contract in full.
The last way a dental broker can help you is by aiding in the transition itself, after the sale has been finalized. It’s vital that staff and patients alike feel that operations continue without interruption.
Dental brokers ensure that buyers have everything they need to be successful with the practice right away. They’ll provide analysis of the financial situation and advise you on the steps you can take next. For sellers, they make sure that all legal obligations are taken care of.
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 us today to find out how we can make a difference in your practice transition.