Buying

  1. How are the valuations done and are they fair?
    There are many methods of doing valuations and good companies will use multiple methods. There are thumb nail methods, using Net Present Value of Future Cash Flows, price per chart and others. Seeing a few and then a blend of them is probably the best. Is the value of it fair? That depends!!
  2. How will I pay for a practice?
    This is a very loaded questions. Of course it depends on what you mean by, how will pay for it. From a literal sense, you will need to borrow money from a bank or the seller. Most sellers won’t want to be the bank and understandably so. There is a whole conversation we should have about how BEST to arrange financing so aren’t strapped.
  3. How can I learn how to run a business?
    If you are looking for a high level answer to this question, read Michael Gerber’s, E-Myth Revisited. For a more specific answer, I would take some practice management courses or hire consulting firm.
  4. How long should I keep the selling doctor around?
    A lot of this depends on what he wants to do, but the short answer is, the longer he stays the higher your retention rate will be. After many years of doing dentistry, there is also probably something to be learned from him.
  5. What else would you recommend to make this a success?
    Have a very clear vision of what you want your practice to look like. Once you have this, building success out of it will be much easier than if you just happen through the process.

Selling

  1. How long does it take to sell?
    This depends on how aggressively you price it. Once you find a serious buy who is qualified, it can all wrap up very quickly
  2. What all is included in the sale?
    Whatever you want and don’t want to sell. We just need to know as we price it. Obviously anything not included, changes the valuation.
  3. Do I sell my company or just the assets?
    This is also up to you. If you sell the company, it will need to be in good standing with all companies and agencies. You will also sell it net of all the debt then. If you sell just the assets, you will have to handle all the debts yourself.
  4. What are the tax implications of this transaction?
    Great question and probably too specific to answer here, but will try. Your personal income the year you sell will most likely be very high and hence your tax liability also high. Selling pieces over time can be a great idea for this reason, but isn’t always an option. We can discuss this with you but should really involve your CPA and financial planner in this discussion.
  5. Will I need to hire an attorney?
    Only an attorney can write and prepare the legal documents. So the answer is most likely yes, but let’s have a discussion about it.

General

  1. Who pays the broker?
    The seller pays the broker. If you have a good one, they create a fair deal vs one that is good for them and not the buyer.
  2. What states are you licensed in?
    Many states to have licensing requirements but not all. For a current list or to find out if we are in your state, give us a call.
  3. What should I be careful of?
    Use good common sense here. If you are hearing from a broker something that sounds too good to be true, be careful. There sometimes can be amazing deals on both sides of the equations. Common sense and gut feel will get you a long ways in life.
  4. What happens after this is all done?
    We need to handle the teams feelings very carefully. Either as the buyer or seller, the feelings of the team are wildly important. They have a lot riding on this process and because of this both the seller and buyer do as well.
  5. Should I just start a practice from scratch vs buying one?
    They both present their own challenges. There is no right answer here. There is no easy way, both require work. If you would like to brainstorm this topic, give us a call.