Can I Sell My Dental Practice Without a Dental Broker
If you’re a dentist considering selling a dental practice, you likely have many questions. The process can be confusing and complicated sometimes, and you’re likely struggling to keep up with the demands of selling your practice and maintaining your business.
If you’re strapped for time and trying to take care of your practice, you are probably trying to simplify your life in any way you can. One potential way to streamline the sale process is to forego partnering with a transition expert or dental broker. You might think that selling your dental practice directly to a dental support organization or dental partnership organization without a broker is a savvy decision, and one that will ultimately save you time.
However, if you decide to sell your dental practice without a dental broker, you are potentially depriving yourself of a key resource, one that can help you maximize the sale process. Many dentists convince themselves that they don’t need a dental broker to assist in their transition, then discover just how much value a dental broker partner can add to the process.
Risk of Undervaluation
Foregoing a dental broker as a transition partner can significantly impact your practice valuation. Understanding your practice’s current and future worth is an integral part of the process and one that can make or break the closing price of your dental practice. Too many dentists don’t fully understand the worth of their practice and attempt to go without a dental broker in their corner.
Dentists who rely on simplistic rules-of-thumb, top-line numbers, or online practice evaluations risk under- or overvaluing their practice. Both valuation errors severely limit your ability to field potential offers successfully. Too high a valuation leaves you fixated on an impossible number that is likely far above market value and unobtainable. Too low of a valuation means you’re that much likelier to accept an under-value, lowball offer and consequently leave tens of thousands of dollars on the table.
Lack of Familiarity With Buyer Screening
If you’re selling your dental practice, you’re likely eager to receive and review potential buyer offers. However, fielding offers for your dental practice will be much more intricate than determining if the offer is interesting. Dental practice transitions are complicated, laborious, and time-intensive. It’s best to decide early on whether a potential buyer is a good match. Unfortunately, you likely don’t have a methodology and process for screening potential buyers.
However, an expert dental broker partner will have a wealth of experience in this sort of buyer verification and can help you screen potential buyers accordingly. Some may even have a private buyers’ network you can access as part of their services, which may give you early access to an extensive collection of interested and pre-screened buyers. Working with a dental transition partner is a huge benefit and one that is difficult for many dentists to replace.
Lack of Awareness About Standard Terms & Conditions
When attempting to sell your dental practice, it’s probably the first time you’ve ever sold something of this value and complexity. Unfortunately, the dental support organization or dental partnership organization you’re engaging with has likely navigated hundreds or thousands of dental practice negotiations. Consequently, the organization is likely more prepared than you and will have more industry knowledge. There’s no shame in this. Remember, the organization has teams of folks specializing in evaluating, pitching, and closing dental transitions.
The discrepancy in expertise here means that you likely won’t identify terms, conditions, and asks that are not standard. A good attorney can certainly help with this, but you’re still flying blind without a dental broker in your corner. A qualified dental broker partner is your best resource for neutralizing the DSO or DPO’s advantage and ensuring that you receive a fair deal. A good dental broker will help you understand your worth and work with your attorneys to arm them at the negotiation table.
Partner With Triumphant
A qualified dental broker can help you streamline your sales pitch and sell your dental practice on your terms, time, and asking price. If you want to sell your dental practice, contact Triumphant today for a free courtesy consultation!
Our team has extensive experience on both sides of complex dental transition deals, expertise that makes us that much more impactful for our clients. We partner with our clients to help them understand their practice’s value and what drives them. From there, we use every tool at our disposal to maximize their value. When you partner with Triumphant, you’re partnering with an industry-leading expert dedicated to your success.