Are you considering to sell your Dental /Medical practice, but not sure where to go? Practice owners have always wondered if it is best to sell their office themselves or through a broker. There are advantages for each, but remember a Dental /Medical Practice Broker works on a performance basis. If the dental practice does not sell, the brokers do not get paid.
By using a broker you do not receive 100% of the sale price, but you avoid dealing with buyers, advertising your practice and having to worry about the confidential nature. Whether you decide to use or not use a brokerage services, you are still required to furnish all financials, provide tax returns, submit staff information, and make sure your practice retains its production. When selling a practice, there are 4 general areas to cover: Evaluating the practice, marketing the practice, working with potential buyers, and accepting the offer.
Evaluating a Dental /Medical Practice:
You have probably heard from many sources that practice sale prices are based on a percentage of the previous year’s Revenue and you would be correct! Specific to Australia, most practices sell for up to 100% of their last year’s Revenue. If there are unique factors about the office, it may sell for over 100% of Revenue. To ensure the highest selling price, a practice owner must keep their practice’s production on track. This builds buyer confidence in the office and will command a higher selling price. In addition, if the buyer requires a lender, the practice will look better in the bank’s eyes with consistent cash flow and may result in up to 100% financing.
Marketing:
How does one market a dental /medical practice as a confidential sale and provide maximum exposure? Jan Gray the owner of PracticeLink tailors each marketing campaign for each practice based on factors such as: the geographical location, makeup of practice (patient type), the doctor profile, revenue, staff information, and how the owner runs the practice. By utilizing online and offline marketing strategies, SalesPracticeLink
Most brokers should have their own database of clients who are actively seeking to purchase an office, but how does a brokerage ensure all their clients know about their newly listed practices? At PracticeLink, we provide our clients with weekly email updates for new listed practices and more. By ensuring our clients are aware of all available practices, each practice receives maximum exposure while focusing on the confidential nature of the sale.
PracticeLink marketing campaigns have been proven to generate interest. With our past campaign for a dental practice for sale in Brisbane Queensland, we received a 21% opening rate. In Gold Coast, we received a 27% opening rate! Imagine the interest we can generate for your practice?! In addition to listing your practice on our website; we utilize additional external marketing campaigns both online and in print to generate additional interest for the selling practice! But it is all industry specific.
FISH WHERE THE FISH ARE BITING
Potential Buyers:
Once your practice is advertised and a buyer shows interest, are you prepared to speak to with them? Speaking with a potential buyer is a fine art that can go wrong very quickly. Are you certain the buyers are ready to purchase and aren’t just tire-kickers? While there are other factors you will need to address, you can avoid this stress by hiring a full service practice broker.
PracticeLink shows potential buyers your practice, screen the buyers, and assist in writing up the offer for you to review. We ensure both the buyer and seller are represented every step of the way.
Accepting the Offer:
One would assume once the offer has been accepted 80% of the battle has been fought, and they would be wrong. Once a seller has accepted the offer, the real work begins! Depending on the how the deal was drafted (cash buyer, financing required, carry-back, etc.), a seller will be required to provide financial information for the lender, buyer(s), and possibly open their practice for a consultant to review. While there are multiple other barriers a buyer and seller must navigate, utilizing a broker will assist you in avoiding headaches and other hiccups that may occur. During a buyer’s due diligence they still have the option to NOT purchase your office!
Ensuring Success:
After the buyer’s due diligence and the funds have settled, the buyer is now the proud new owner of the office! At this point, the broker’s job is usually done, but at PracticeLink we want to ensure the success of the practice. How? We will continue to monitor your progress for 3 months and help with any little hiccups that might arise along the way ensuring you’re not left on your own.