Navigating the Path to Dental Practice Acquisition: Understanding the Letter of IntentContinue Reading navigate_next
The Letter of Intent is a vital instrument that lays the groundwork for the acquisition of a dental practice. It acts as a map, guiding both parties to a shared understanding of the transaction’s terms and serving as a blueprint for the formal, legally binding purchase agreement. Submitting an LOI is not just a formality, but a strategic step on your journey towards successful practice ownership. Approach this phase with careful consideration and professional assistance to ensure your path to acquisition is smooth and successful.
The Affect of Delta Premier on Dental Practice ValuationsContinue Reading navigate_next
If you are a Delta Premier provider and receive Delta Premier reimbursement rates, congratulations! You’re a seasoned dental practitioner who has been around a while! For those who might not know, Delta Premier is a grandfathered level of billing which Delta no longer offers to new dentists or to new owners of dental practices. The current top level of Delta billing, at least for those without Premier status, is Delta PPO. So, what happens if you’re a Delta Premier provider and are considering the sale of your dental practice? Does it affect your value? And, if so, how? The short answer is that it most likely will negatively affect the value. Let’s dig a little deeper.
Key Professional Advisors when Buying or Selling a Dental PracticeContinue Reading navigate_next
Selling or buying a dental practice is a significant financial decision. Successfully transitioning into dental ownership is more likely to be achieved when the dentists are guided by certain professionals that thoroughly understand the process and are dental specific. This blog post will review the various advisors dentists can engage for help when selling or buying their dental practice.
What if my lease only has a few years left, can I still sell my dental practice?Continue Reading navigate_next
Dealing with a short-term lease in the sale of a dental practice requires some extra effort, but it is not an insurmountable issue. The target for banks who are funding a loan for the buyer of the practice is at least 5 years of term on the lease, with many dental lenders requiring 10 years. This requirement from these lenders can be met by the current term (firm term) on the lease or a combination of the current term plus any lease options.
Top 10 Deal Points in a Dental Purchase and Sale AgreementContinue Reading navigate_next
Every dental office sale requires that dental buyers, dental sellers, and attorneys agree to several, major deal points within the asset purchase agreement. Keep in mind that these negotiated deal points come after both parties have agreed to price and timing, and, while most of them are typical in the business-selling world, some are specific to dentistry.
What things can I do now to increase the value of my dental practice?Continue Reading navigate_next
Preparing your dental practice for sale is much like selling any other business. When you increase income and decrease expenses, the value goes up. Conversely, if you have high overhead relative to your collections, the value of your practice decreases.
The 2022 Dental Practice Sale OutlookContinue Reading navigate_next
The year 2021 will go down in the books as our “rebound” year—the year the dental industry clawed its way back to the new normal after COVID. Most dental practices experienced a robust rebound as patients came back after long absences from treatment. This led to increased collections, full schedules and, oddly, a challenging labor market. We expect 2022 to continue this trend and remain a strong seller’s market for those selling their dental practice.
How are dental practices valued?Continue Reading navigate_next
The prospect of selling a dental practice can be a bit daunting, but, like selling houses or cars or your old CBCT, if you know the process and what to expect it becomes much easier. Many times, doctors are selling dental practices that they have spent the better part of their lives building and nurturing. They wonder “What will happen to my staff?” and “Will the new doctor take care of my patients?” among a hundred other questions that come with selling something that means more than just what the accountants and suppliers see. So, let’s break down the basics of selling a practice. Understanding the basics will, hopefully, alleviate the fear of and potentially help prepare for that eventual day.
The Importance of Fit Between Buyer and Seller of a Dental PracticeContinue Reading navigate_next
You like the Rolling Stones? I like the Rolling Stones too! Great, you’ll be a perfect fit for my practice! Maybe that’s a bit of a stretch when addressing this topic but finding the right fit when selling a dental practice is more than just a few