There are two big mistakes a doctor can make when it is time to sell their practice. The first one is to try and sell the practice themselves; most of the time valuing it well above what is fair and marketable. The second mistake is to sell your practice too late. This results in a less marketable and less valuable practice. As production declines, future practice value is lost. Both of these errors result in effort without the anticipated results. Avoid these mistakes by hiring a qualified broker to assist you in the transition process.
A strategic brokering style provides the greatest protection for each party and effectively brings the parties together to achieve a win-win transition solution. We require that each party utilize their own personal representation – attorney and accountant – to review each step of the process and recommend any modifications. We can recommend counsel and accountants to parties who do not have a current relationship, but in each case the counsel is retained by and solely responsible to their client, be it the seller or the purchaser. Greatest rewards are reaped when you take the time to utilize the expertise of one of our Transition Specialists.
*Specialty practices often require more time to sell due to the significantly smaller buyer pool.
Marketing your Practice
When marketing your practice to potential buyers, our style is comfortable and non-confrontational. There is no pressure or hype. We simply explain the facts and figures to clients so that they can make the most well informed decision in their own best interest.
Phase II maintains a database of serious potential buyers that we have personally identified through our website and direct marketing efforts. Clients and prospects may be referred to us by word of mouth; others are contacted at local, state, and national conventions that we attend.
Many of our client’s practices sell before they are listed! This is a huge benefit to dentists who are concerned about confidentiality and the potential negative impact of revealing their intention to sell their practice.
The economic model used by Phase II is universally accepted by lenders that specialize in dental practice acquisition financing. The model uses business applications and several methodologies to capture a thorough and accurate value for a practice.
The resultant figure is then compared to other practices that have sold and we compare the practice price/gross revenue ratios to evaluate the market comparisons. This methodology is accepted by accountants, lender, and juries as being a rational, reproducible, and comprehensive measure of price and value.
Bringing on an associate at the right time can be a valuable addition to your practice. When it is set up as a step toward a time defined buy-out, it helps to maintain the referral sources and value of the practice at the time of transition. Our practice transitions team can help you choose an associate that is right for you.
Many group practices are set up as partnerships. When looking to create a partnership, Phase II’s team of dentist brokers understands that creating a win-win scenario for both parties requires more than just creating a mutually beneficial financial and legal arrangement. Utilizing our extensive experience as dentists and brokers we have developed a unique facilitative process that helps dentists determine whether they are compatible before entering a partnership. Many of our clients have created long lasting, mutually beneficial partnerships as a result of our facilitation.
We understand the process of growing a business and merging independent practices. Properly implemented, practice mergers provide a win-win scenario for both parties and are powerful tools for creating wealth. Phase II understands the issues that are necessary in evaluating the feasibility of a practice merger, and we can assist in locating practices that qualify as exceptional merger candidates.
Speak with a consultant
We will be in touch to speak more about your individual situation, practice details, and more.