Common Mistakes Made When Selling A Dental Practice
When you’re looking to sell your dental practice, you likely have many questions, and rightfully so. Selling to the right buyer could be a significant next step in your career. Selling to the wrong buyer could completely upend your career and waste one of your greatest assets.
A lot is riding on the sale of your dental practice, and this sale is likely the most complex, valuable, and intricate of your career. The stakes are high, and you can’t afford any missteps.
To help you prepare, our team has compiled a list of common mistakes to avoid when selling your dental practice. Read on to learn more!
Mistake 1: Not Knowing Your Worth
Imagine trying to sell a car without knowing the approximate worth of the vehicle in question. You might be able to field quotes, haggle, and finalize a deal, but you’ve likely left money on the table by going in without a good estimation. The complexity and nuance of sales are bad enough when you’re selling a car; now, imagine what it’s like when you’re trying to sell a business with an existing client base, experienced staff, and high-end medical equipment. The potential for misquote or undervaluation is high.
We always recommend getting an accurate practice valuation before fielding any inquiries. Trust us; you’re flying blind without knowing what your dental practice is worth.
Mistake 2: Accepting the First Offer
Your first offer is likely not the best offer. This is particularly true if you’ve just received a cold call from a Dental Partnership Organization. The dollar figure of the deal offered might be enticing, but it’s likely not the fair market value of your dental practice. The fact that these DPOs are taking the time to cold call you is a sign that your practice is valuable. Don’t be tempted to bite at the first offer. Take the time to understand the value of your practice and screen a list of qualified and interested buyers. If you take the time to field several offers, the odds of selling your practice at your terms and for your ideal price point increase significantly. This is where trusted transition counsel can be invaluable.
Your dental practice transition advisor will be able to help you gauge the many offers you’re considering and can even help you find new interested buyers.
Mistake 3: Not Reading the Fine Print
Joining a Dental Partnership Organization or a Dental Support Organization isn’t just a question of dollar amount. Oftentimes, the terms of the agreement have just as much lasting impact on how you live and work with the organization in question. Details around who controls hiring and firing decisions, profit-sharing, and other key practice leadership elements can make or break your satisfaction with your new partner. For instance, if you expect to retain control over staffing, you might be in for a rude awakening if your new partner has its eyes set on some hiring changes within your practice. That can sour your new business partnership and fast.
Few things in life are as burdensome as a complex business partnership; make sure that whatever organization you sign with is the right partner for your unique situation.
Mistake 4: Not Calling Triumphant Transition Partners
Selling a dental practice is challenging work and one that requires expertise, dedication, and skill. If you’re looking for a trusted dental practice transition advisor to help you navigate the complexity of the sale process, look no further than Triumphant Transition Partners. Our advisors have a deep and intimate knowledge of the dental industry – knowledge that they apply to your case to help you sell your practice on your timetable and terms. At TTP, we offer:
- Practice Evaluations
- Access to Private Buyer’s Network
- Help Screening Applicant & Drafting Letters of Intent
- Pertinent Financial Documents to Equip Your Attorneys at Close
You need a dedicated and savvy dental practice transition advisor if you want to sell your dental practice on your terms and timeline. Selling your dental practice can be complicated, but it doesn’t have to be with Triumphant Transition Partners. Call now for a free consultation to discuss your needs further!