5 Signs You Need a Dental Broker

If you’re considering selling your dental practice, the process may seem overwhelming. You’re already struggling to maintain your practice and take care of your patients. Selling the practice on top of all of that might sound impossible. That’s why many dentists turn to a dental broker to help them through the sale and practice transition process. If the five situations listed below apply to you, it might be time to consider partnering with a dental broker. 

You Don’t Know Your Value

Have you ever tried to sell something without an idea of what it’s worth? It can be a frustrating process. Without a benchmark of what it’s worth and what others are selling for, it’s impossible to know if you’re receiving a fair offer or not. This doesn’t usually happen with simple transactions like groceries or reselling furniture. However, when it comes to a sale as complicated and multi-faceted as selling a dental practice, understanding the value of your dental practice is paramount. Undervaluing your practice by as little as 5% could be tens of thousands or hundreds of thousands of dollars lost. What’s more, if you don’t understand what your practice is worth, you could agree to a low-ball offer without understanding that you left a considerable amount of money on the table. 

A good dental broker is a great way to prevent that from happening. A detailed practice evaluation is usually the first step for any dental broker worth their salt. The dental broker will then sit down with you and review the findings of that valuation. What’s your EBITDA? Do you own your real estate? What are comparable practices in your region selling for? Without the right dental broker, you’re going to miss out on vital information that will help you through the sales process. 

It’s important to remember that buyers will only represent their interests. They might make promises, offer exciting numbers, and say the right things when proposing or finalizing a deal, but they represent their own interests at the end of the day. Dental brokers represent your interests and fight to ensure you get the best terms and dollar value possible. Partnering with a dental broker can help you both understand what your practice is worth and how to get the best possible terms. 

You Don’t Know The Industry

As a dentist, you know the dental industry forward and backward. However, the practice transitions industry is a slightly different beast. The dental support organizations and dental brokers involved are likely not familiar names to you. What’s more, these organizations are merely the surface of the industry. Details like financing, the practice transitions process, and how to find the right attorney are also central to a successful sale. And we haven’t even started discussing the terminology and specific financial, business, and legal terms you’ll need to know to navigate the process successfully.

Most dentists will only sell one practice in their career, so it stands to reason that the process can be overwhelming and complicated. A good dental broker will simplify the practice transition process for you and give you helpful advice and recommendations. 

Don’t conflate the conversation you have with any one dental support organization with the industry at large. There are countless DSOs out there, so if you have a conversation with one DSO, you have only had one conversation with a DSO. There are countless options out there. A good dental broker will also have industry connections in their pocket that they’ve developed and cultivated over the years that you’ll have access to. Use these dental connections to streamline the process and find the right fit for you and your needs.  By partnering with a dental broker, you’re tapping into their connections and expertise to make your life easier. 

You Don’t Know Your Goals

If you’re contemplating selling, you probably are visualizing the sale of the practice as the ultimate goal. That is sometimes the case, but we encourage you to consider WHY you want to bring a dental support organization on board. Are you selling your dental practice to retire? Are you looking for support on the administrative side of your practice but want to retain decision-making rights on certain key business calls like staffing? Do you want to only practice dentistry and don’t need to retain decision-making powers in the practice? Are you trying to leave dentistry entirely and need a large nest egg to finance your next endeavors?

These are all valid goals, but too many dentists try to sell their practice without understanding why they’re selling. Partnering with a dental broker gives you a trusted advisor who can help you think through your goals and then offer tailored recommendations accordingly. 

You’re Having A Hard Time With The Details

There are countless industry-specific facets when it comes to selling a dental practice. Everything from letters of intent to qualifying prospective buyers is a specific part of this process and one that you’re likely not very familiar with. Other documents, like asset purchase agreements, practice assessments, and draft contracts, also might be outside of the scope of your knowledge. A good dental broker will help you with these details and prepare you accordingly. 

You Don’t Have The Time

If you had the time to immerse yourself in the practice transition process, you might be able to learn some of the nuances of how to sell a dental practice. However, this will require a lot of time, and it’s likely time you cannot spare if you’re trying to run a dental practice. The last thing you want is for your sale process to take longer than necessary because you don’t have the time to deal with potential buyers. 

The simple fact of the matter is that correspondence with potential buyers, submitting paperwork, and sales strategy takes time. Many dentists just don’t have the time to dedicate to the sale process, and outsourcing to a dental broker might then make more sense. When you choose a dental broker, they are able to assume responsibility for the process. This dedicated expertise means that no balls are dropped and that your practice transition is prioritized without taking time and energy from your priorities. 

You’re Building Generational Wealth

The sale of your practice is likely the biggest deal you’ll ever be involved in. If done correctly, you can leverage the sale of your practice to build a nest egg for your future and the future of your family. It’s imperative to have great representation at the table, however, if you’re trying to build generational wealth for your family. Securing 20-40% more on a practice deal could add a pretty penny to your nest egg and be that much more to pass on to your family. The right dental broker will help you secure the best deal possible. 

Contact Triumphant Transition Advisors

Selling a dental practice is complex, but it doesn’t need to be difficult. The right dental broker will help you sell your practice on your terms, above asking price, and fast! If you’re interested in achieving your career goals, contact Triumphant Transition Advisors today!

We’re here to help you…

  • Evaluate Your Practice
  • Discuss Your Goals
  • Present Your Practice To Our Private Buyers Network
  • Qualify Buyers
  • Equip Your Attorneys With Pertinent Documentation & Data
  • Negotiate Final Sale On Your Terms & Price

Contact Triumphant Transition Advisors For Your Courtesy Consultation!

4 Questions to Ask a Dental Support Organization

You likely have many questions if you’re contemplating selling your dental practice to a dental support organization. The decision to sell your dental practice is a big career move and can pay big dividends for your career. 

However, not all dental support organizations are equal, and we encourage you to consult with multiple dental support organizations as you weigh selling. Transitioning your practice is a big decision, and you want to ensure you have the right buyer before you lock yourself into the biggest deal of your professional life.

As dental brokers, we’ve spent a lot of time consulting with dentists and dental support organizations and have unique insight into the goals and needs of each. To help you decide, we recommend asking your dental support organization these questions. 

What Changes Can I Expect to See?

Dental support organizations support dentists who want their nights and weekends back. However, this often comes with a tradeoff. You might not be responsible for every facet of your practice anymore, but that comes with a partner who will weigh in on decision-making and have processes for calls that used to be yours. 

You must ask any prospective dental support organization partner how your practice will change. This will vary from DSO to DSO, but be prepared to understand:

  • Will my staff stay on?
  • Will practice software change?
  • Will my practice be rebranded?
  • What does supplying the practice look like? 
  • Will my feedback be taken into consideration when addressing potential changes? 

Will I Need to Stay On for a Certain Period of Time? 

Some DSOs expect the seller to stay on for a few months while the practice transitions. Others are flexible about whether the dentist needs to stay on and might be a good fit for a dentist looking to make a quick exit. Other dental support organizations are open for longer-term commitments where the seller stays on as a practicing dentist for an extended period.

Whatever your unique situation, there’s a dental support organization for you. However, it is imperative to understand the terms of the deal before you make any commitments. If you expect to leave dentistry as soon as possible for another venture, nothing is as debilitating as needing to stay and help transition the practice for a few months. Be sure to ask up front to understand if this potential dental support organization is a viable partner. 

Be sure to ask:

  • Will I need to stay on post-close?
  • What does compensation look like post-close?
  • What would my responsibilities be post-close? 

What Are the Terms?

Dental transitions can be complicated, and you need to understand the terms of your deal before you make any commitments. Contracts can be structured in very different ways, so don’t assume anything, and be sure to ask the DSO.

  • Is the purchase price paid out in cash?
  • Will part of the deal be stock?
  • Is there an earn-out clause? 
  • If work is required post-close, what does compensation look like?
  • Are elements of the deal based on performance? 

What Would Others Say?

If you’re considering selling, see if the DSO has testimonials from other dentists. Selling your practice is a big decision; you want to ensure you choose the right partner. If possible, get in contact with past sellers and ask:

  • Did the DSO hold up its end of the deal?
  • How was the transition process? 
  • What changed about the practice post-sale?
  • Have past sellers retained their autonomy? 

Protect Your Interests with a Dental Broker

These questions are great to have on hand when fielding inquiries from dental support organizations. However, first-hand insight and knowledge of the dental support organization’s history is invaluable, and that’s one of the many reasons dentists consider partnering with a dental broker. 

The right dental broker can significantly help as you attempt to qualify dental support organizations. An excellent dental broker is only there to represent the seller’s interests and will have industry knowledge about whether any given DSO is a good fit. The right dental broker will also have access to industry contacts you can consult with if needed. 

That’s where Triumphant Transition Partners enters the picture!

We’re here to help you:

  • Evaluate your practice
  • Discuss your goals
  • Present your practice to our private buyers’ network
  • Qualify buyers
  • Equip your attorneys with pertinent documentation and data
  • Negotiate the final sale on your terms and price

Contact Triumphant Transition Advisors for Your Courtesy Consultation!