Sell A Dental Practice: Practical Guidance From a Pro
Mastering the Process: How to Sell My Dental Practice Efficiently
Practical Guidance – Triumphant Transition Partners.
Selling a dental practice can be an overwhelming and complex process. At Triumphant Transition Partners, we guide and support dental practitioners in partnership with all organized dental groups. We know the decision to sell your dental practice is a difficult one, but here at TTP, we view it as a 100-year decision. Triumphant represents your best interests only, while buyers solely represent theirs.
It is crucial to involve a dental attorney to navigate the complex legal documents and agreements, ensuring that all legal terms align with your goals.
With experience in the DPO and DSO space, we know the necessary metrics to maximize our clients’ return, negotiate the ideal sale terms you want, and keep you in control. When considering a dental service organization, it’s important to recognize the advantages they offer, such as enhanced resources and professional support. However, potential sellers should also consider the implications for their practice’s identity and conduct thorough evaluations when selecting DSO partners.
You Want to Sell Your Dental Practice- Now What?
When engaging in dental practice selling, selecting the right dental practice brokerage is an indispensable step. This decision holds paramount importance because Dental Support Organizations (DSOs) and Dental Practice Organizations (DPOs) vary significantly, and understanding the differences between a dental service organization and a DPO is crucial. Selecting the right one can significantly impact the sale and transition of your practice. Dental brokers possess specialized knowledge and experience that can help set the right listing price and streamline the transition process. It’s not just about finding a buyer; it’s about ensuring a smooth transition while maximizing the value of your dental equipment, financial assets, and practice goodwill.
By partnering with a specialized dental practice brokerage like TTP, you’re ensuring that your practice’s true value is recognized and that the process is as smooth as possible. From understanding the market to negotiating the best deal, the right brokerage can make all the difference in maximizing your return and safeguarding the legacy of your dental practice.
Carlo and Nate are exceptionally knowledgeable at what they do. They went above and beyond our expectations, helping us find the ideal partnership that was both economically and culturally aligned. I highly recommend them to anyone considering their transition options. Love these guys !
The team here is wonderful. They care, are helpful beyond my expectations, and most importantly, matched me with the right partner for my situation. They worked tirelessly through the entire process. You will not regret working with them.”
Awesome experience with great team!! Decisions like these can be life changing and I feel very lucky to have crossed paths with Triumphant! Nate, Carlo, and the rest of the team were awesome! I’d do it again and feel blessed for what’s ahead!”
I’m not sure I have enough positive adjectives to use for Nate Thompson. Professional. Reliable. Thorough. And most of all, caring and authentic. It has been an exhausting, emotional roller coaster and I can’t even imagine what it could have been like without Nate AND his team in my corner. Carlo you were amazing! Thank you gentlemen for all you have done.”
Nate and Carlo at Triumphant were fantastic to work with. They made the transitioning process very smooth and I could not be more pleased with the partner and situation that we landed with. I highly recommend Nate and the team at Triumphant.”
Define Your Goals and Expectations
Defining your goals and expectations is a crucial step in the process of selling your dental practice. It’s essential to consider what you want to achieve from the sale, whether it’s retirement, seeking more balance, or scaling your practice. Having a clear understanding of your goals will help you make informed decisions throughout the process and ensure that you find the right partner to help you achieve your objectives.
When defining your goals, consider the following:
- Financial Goals: Determine the financial outcomes you wish to achieve from the sale. This includes the desired sale price and any financial arrangements post-sale.
- Non-Financial Goals: Reflect on non-financial aspirations such as maintaining the legacy of your practice, ensuring the well-being of your staff, and preserving patient care standards.
- Sales Process Expectations: Outline your expectations for the sales process, including the timeline, level of involvement, and any specific conditions you want to be met.
- Transition Period: Consider your expectations for the transition period, including the level of support and training you will provide to the new owner.
By clearly defining your goals and expectations, you’ll be better equipped to navigate the sales process and ensure a successful outcome.
Recent Transactions
At Triumphant Transition Partners, our team has assisted countless dentists and medical professionals in facilitating the sale of their dental practices, medical practices, or med spas. Here are a few of our most recent transactions and satisfied clients.
Denver GP
We are thrilled to announce another successful transition for our client and to find the right fit that aligns with her culture, patients, and community. Congratulations to Dr. Kim Miyamoto on transitioning her Denver area General Practice to Dr. Conan Zhu.
Thank you to Kevin Rouse at U.S. Bank for your support.
Memphis, TX
We are pleased to announce another triumphant closing between Dr. Blake Billups and GPS Dental in Memphis, TX.
This was an extensive process with highly competitive and qualified offers. We were able to secure over 270% of collections for our client.
We are thrilled for Dr. Billups and the GPS family.
Memphis, TN
We are pleased to announce another successful transition between Shipmon & Bell and GPS Dental in Memphis, TN.
This was a seamless fit for both parties, and it is exciting when you can align a great client with the right fit. We had over eight offers and over a 7.9x, and we knew as a team the best match for this specific transition.
Congratulations to Dr. Todd Bell and his team.
Central Florida
The Marion Dental Group in central Florida closes on Friday.
Dallas/Ft. Worth
We are thrilled to announce another triumphant transition: Dr. Sonya Reddy of Smileup Dentistry is transitioning her practice to Dr. Diana Lopez. What excites us about this deal is that besides the continued patient care; from the day Dr. Reddy enlisted our firm until funding, it only took 60 days total. That includes discovering, gathering pertinent information/documents, underwriting, procuring a buyer, LOI, lease reassignment, agreed-upon agreements, and funding.
Thank you for entrusting your practice to us, Dr. Reddy, and congratulations to Dr. Lopez.
Houston, TX
We’re excited to announce the successful partnership between our client, Dr. Barry Heaton, in Houston, TX, and Dentive, a doctor-centric DSO group.
After careful consideration and receiving multiple bids, Dentive emerged as the ideal match. During due diligence, Dr. Heaton’s Perio practice experienced record production months, and we secured additional cash in the hundreds of thousands in true-up.
Greater Kansas City, MO
We are thrilled to announce the partnership with our client Dr. R and Apex Dental Partners as they enter the greater Kansas City, MO market and continue expanding their footprint.
We cannot thank Apex Dental Partners enough. They were aligned and dedicated to the entire process from start to finish, which shows the value they bring to all their partners. It was an absolute pleasure, and congratulations to our client for ensuring his patients, team, and family have the best clinical support and perfect exit strategy when that time comes down the road. Both our client and Apex shared the same philosophies in total patient care and excellence.
Nashville, TN
We are excited to announce the affiliation between an iconic multi-doc general practice in Nashville, TN, and United Dental Corporation. Our clients fielded 10 LOIs, and we were able to choose the perfect match and the right terms. Our clients received over 200% of collections.
Good luck to Dr. Robert Ammarell and Dr. Matt Gorham on your Triumphant DSO affiliation.
Dallas, TX
We are thrilled to announce the affiliation between the standard of General Practices in the Dallas Metroplex and are excited for the Bayside of Rowlett’s partnership with Squire Dental DSO.
Dr. Brad Boeke fielded multiple offers and received over a 7.5x for his multi-doc and multi-million dollar practice. Best of luck to you, Dr. Boeke. It was a pleasure advising you throughout this competitive process and a Triumphant day for all parties involved.
Miami, FL
Another successful DSO affiliation with our client, Dr. David DelCastillo, in Miami, FL, and Star Dental Partners.
We received multiple bids, and Star Dental Partners was the best fit for our client with their doctor-centric approach. This was a triumphant partnership, and our client received a 40% higher offer when he hired us to advise them than he had when represented by another brokerage. We are excited about this Triumphant DSO partnership. Good luck, Dr. Del Castillo.
Breakwater, ME; Tory Hills, ME; Mountain View, ME
We are thrilled to announce another Triumphant DSO transition with our client, Dr. Shilo Annis, and his 3 locations, Breakwater, Tory Hills, and Mountain View Dental in Maine with Straine Dental Management.
After considering multiple options, SDM was the best choice because of its experience and long success periods over the last 30+ years.
It was an absolute pleasure and privilege to work with you, Dr. Annis, SDM, and the exceptional team at Healthstream Ventures. Your invaluable contributions and unwavering support were instrumental in making this transition a success. Thanks to our collective efforts and collaboration, we were able to close this transition at a great pace, resulting in a favorable outcome for all parties involved.
We were able to negotiate upside in additional offices and received over 200% of collections. This was another Triumphant success.
Assess Your Practice’s Readiness for Sale
Assessing your practice’s readiness for sale is a critical step in the process of selling your dental practice. It’s essential to evaluate your practice’s financial health, operational efficiency, and market position to determine its value and attractiveness to potential buyers.
When assessing your practice’s readiness for sale, consider the following:
- Financial Health: Review your practice’s financial statements, including your profit and loss statement, balance sheet, and cash flow statement. Ensure that your financial records are up-to-date and accurate. This will provide potential buyers with a clear picture of your practice’s financial health.
- Operational Efficiency: Evaluate your practice’s operational efficiency, including staffing levels, patient flow, and systems and processes. Identify areas for improvement and implement changes to increase efficiency and reduce costs. Streamlined operations can significantly enhance your practice’s appeal.
- Market Position: Assess your practice’s market position, including its reputation, patient base, and competitive landscape. Identify opportunities to increase your practice’s visibility and attract new patients. A strong market position can make your practice more attractive to potential buyers.
By assessing your practice’s readiness for sale, you’ll be able to identify areas for improvement and increase its value and attractiveness to potential buyers.
Increasing Your Practice’s Value
Increasing your practice’s value is essential to achieving a successful sale. There are several strategies you can implement to increase your practice’s value, including:
- Improving Financial Health: Focus on increasing revenue, reducing costs, and improving cash flow. This can be achieved by optimizing billing processes, reducing overheads, and enhancing service offerings.
- Enhancing Operational Efficiency: Implement systems and processes to improve patient flow, reduce wait times, and increase productivity. Efficient operations can lead to higher patient satisfaction and better financial performance.
- Investing in Technology: Invest in modern technology, such as digital radiography and practice management software, to improve efficiency and reduce costs. Cutting-edge technology can make your practice more attractive to potential buyers.
- Building a Strong Team: Invest in your staff by providing training and development opportunities. A well-trained and motivated team can improve patient care and reduce turnover, adding value to your practice.
- Expanding Services: Consider expanding your services to attract new patients and increase revenue. Offering a broader range of services can make your practice more appealing to potential buyers.
By implementing these strategies, you’ll be able to increase your practice’s value and attract potential buyers.
Facilitating Successful Dental Office Sales
An experienced dental office broker can do more than just secure a substantial sale; they excel in identifying the perfect match for your dental practice’s specific requirements and company culture. Our extensive network includes numerous dentists eager to purchase dental practices, ensuring a wide pool of potential buyers for your practice. Evaluating and interacting with each potential buyer through meetings and necessary documentation, like non-disclosure agreements and executive summaries, is crucial to ensure a successful practice transition. It’s crucial to remember that when selling to a prominent dental group, a post-sale partnership typically extends for the duration of the agreed-upon contract. Thus, the importance of securing a seamless fit cannot be overstated.
Our seasoned brokerage team specializes in guiding you through selling your dental practice, recognizing that the right partner extends beyond monetary gains. We delve deep into the core of your dental practice, encompassing factors like patient demographics, treatment philosophies, and team dynamics, to identify an entity that seamlessly integrates with your vision. Our thorough approach ensures that the transition not only maximizes your practice’s value but also safeguards its legacy and fosters enduring success.
With our dedicated brokerage services, you can trust that we will work diligently to connect you with an entity that aligns perfectly with your practice’s unique identity. Your future partner will not only honor your legacy but also contribute to its growth, creating a mutually beneficial alliance that transcends the financial transaction alone.
At Triumphant Transition Partners, we are committed to making the transitional process as smooth as possible for all our clients. If you’re looking for an experienced partner to sell your dental practice, look no further than Triumphant Transition Partners.
What to Consider when Selling a Dental Practice to a DSO or DPO.
Dental support organization (DSO) & DPO due diligence is critical. There are countless DSO/DPOs & Dental Office Brokers to choose from, and each is unique – selecting the perfect one for your practice is very important. DSOs provide essential non-clinical management services, enabling dentists to focus on patient care while easing operational responsibilities. Partnering with the best dental practice brokerage is essential.
Pros and Cons of Selling Your Dental Practice
Deciding to sell your dental practice can be a demanding choice. At Triumphant Transition Partners, we take the time to sit down and discuss your needs and understand your goals.
Owning your own practice can be financially rewarding, but it also involves strategic considerations when planning the sale, whether due to retirement or pursuing new opportunities.
This allows us to determine the best route forward and custom-tailor your transition strategy. We have experience selling to doc-to-doc, Private Equity, and with all the organized dental groups. Our team is fully equipped to guide you through every step.
How Much Control Do I Have?
When looking to sell your dental practice, this is often an overlooked and extremely vital aspect of any successful transition. You will be expected to share some or all the control within your practice. Letting us negotiate the precise deal terms to protect you is essential, and we remove all the hidden terms that can be in a contract agreement
What If I Own My Real Estate?
This is often overlooked and very important in recommending the best DSO/DPO for your transition. Here at TTP, we have a team of licensed and experienced Commercial Real Estate agents that will discuss the best fit when deciding to transition your building or negotiating the lease terms with your new partner. This aspect is critical in maximizing the return on your commercial space now or selling to an investor in the future.
How Is My Practice Valued?
Here at Triumphant, we have certified healthcare public accountants on our team to maximize the value of your practice. Practice valuation is crucial in determining the sale price, and during our intake and discovery, we will partner with your team and review all your financial documents to secure that you receive the highest valuation possible.
This is done through a process where we build up your EBITDA. Your EBITDA and our carefully crafted metrics formula ensure we get you the highest VALUE.
Consider Your Post-Sale Role
Our team specializes in negotiation strategies to secure the best deal for your practice. We ensure that terms favor your goals, whether it’s financial returns or ensuring patient continuity. TTP also assists in finding financing solutions if necessary, providing you with multiple options for a successful transition.
Options for Post-Sale Involvement:
- Short-Term Transition Period: Some dental practitioners choose to stay on for a few months to help transition the practice to the new owner. This period allows you to introduce the new management to your patients, staff, and the operational procedures of your dental practice. This involvement can significantly reduce disruption and help maintain patient loyalty.
- Long-Term Engagement: For those who prefer to remain active in their dental practice, negotiating a long-term role post-sale can be beneficial. This could involve continuing as a dentist within the practice, taking on a managerial role, or acting as a consultant to ensure the continued success of the practice under new ownership.
- Complete Exit: Alternatively, some dental practitioners may prefer a complete exit from their dental practice post-sale. This option is ideal for those looking to retire, relocate, or pursue other opportunities. Our team will work to secure the best terms that support a seamless and satisfying departure from your dental practice.
Achieving Your Desired Outcome
No matter your post-sale aspirations, Triumphant Transition Partners is committed to providing a tailored approach that meets your specific needs. Our expertise in selling dental practices ensures that you achieve a favorable outcome, whether you seek continued involvement or a complete transition away from the practice. With our support, you can confidently navigate this important phase, knowing that your future and the future of your dental practice are in capable hands.
Finding the Right Buyer
Identify the Ideal Successor
Finding the right buyer for your dental practice is crucial to ensuring a smooth transition and protecting the practice’s legacy. It’s essential to identify the ideal successor who shares your values, vision, and commitment to providing exceptional patient care.
When evaluating potential buyers, consider the following factors:
- Their experience and qualifications in the dental industry.
- Their financial resources and ability to secure financing.
- Their management style and approach to patient care.
- Their long-term goals and vision for the practice.
By identifying the ideal successor, you can ensure that your dental practice is in good hands and that the transition is successful for both you and the buyer.
Marketing and Confidentiality
Discreet and Professional Marketing
Marketing your dental practice for sale requires a delicate balance between attracting potential buyers and maintaining confidentiality. It’s essential to work with a reputable dental broker who understands the importance of discretion and can market your practice in a professional and confidential manner.
A discreet and professional marketing approach includes:
- Utilizing online platforms and industry-specific websites to reach a targeted audience.
- Networking with other dental professionals and industry experts to generate interest and referrals.
- Creating a confidential practice profile that highlights the practice’s strengths and opportunities.
- Screening potential buyers to ensure they are qualified and serious about purchasing a dental practice.
- By maintaining confidentiality and marketing your practice in a professional manner, you can attract serious buyers and achieve a successful sale.
What is a Dental Support Organization (DSO) or Dental DPO?
A Dental Partnership Organization (DPO) and a dental service organization (DSO) contract with dental practices and dental groups to provide non-clinical operations support services and core business management services. DSOs offer enhanced resources and professional support, which can be advantageous for dental practices.
By law, in most states, dentists must own and operate their dental practices. DSO/DPO-supported dentists can free up time to do what they love, practice dentistry, and leave the operational tasks to others who have created efficient systems. This allows dentists and dental groups to earn more income and flexibility in their professional and personal lives.
DSO/DPOs may be referred to synonymously as dental management service organizations, dental practice management firms, group dental organizations, dental management organizations, organized dental groups, and dental management service organizations. A broad term for Dental DSO/DPOs is Corporate Dentistry, but they are so much more.
At first, some dentists are afraid to relinquish control of the day-to-day dental practice business operations to a Dental DSO/DPO. In our experience at TTP, joining the RIGHT Dental DSO or DPO can be one of the most freeing experiences of your entire dental career. The key is to find the RIGHT Dental DSO/DPO Partnership structure for you. Did you know there are over 4,000 Dental DSO and DPOs in the United States? Finding the right fit for you is where our expertise comes in.
Dental DSO/DPOs can provide support services for:
- General administrative services
- Human resources and staffing
- Payroll and billing
- Insurance coding and insurance services liaison
- Advertising and marketing services
- IT services – Information technology
- Building and facilities management services
- Procurement services – durable and exposable goods
- Accounting services
- Regulatory compliance
Negotiating the Sale of Your Dental Practice
Negotiating the sale of your dental practice can be a challenging and emotional process. It’s essential to approach negotiations with a clear understanding of your goals, the market value of your practice, and the needs of the buyer. A successful negotiation requires effective communication, strategic planning, and a deep understanding of the dental industry.
It is also crucial to consider the significant tax implications involved in the sale. Consulting tax professionals can help structure the sale effectively and minimize potential capital gains taxes.
Strategies for Successful Negotiations
- Define Your Goals: Clearly define your goals for the sale of your dental practice, including your desired sale price, transition period, and post-sale role. Knowing what you want to achieve will help you stay focused and make informed decisions during negotiations.
- Understand the Market: Research the market value of your dental practice, including the value of your dental equipment, real estate, and goodwill. This knowledge will empower you to negotiate confidently and ensure you receive a fair price.
- Know Your Buyer: Understand the needs and goals of the buyer, including their financial situation, practice management style, and growth plans. This insight will help you tailor your negotiation strategy to meet both parties’ needs.
- Be Flexible: Be open to creative solutions and alternative deal structures that meet the needs of both parties. Flexibility can lead to win-win outcomes and facilitate a smoother negotiation process.
- Seek Professional Advice: Work with professional advisors, including a dental broker, attorney, and accountant, to ensure a successful negotiation. Their expertise can help you navigate complex legal and financial aspects, protecting your interests throughout the process.
Creating a Sales Contract
Creating a sales contract is a critical step in the process of selling your dental practice. A sales contract outlines the terms and conditions of the sale, including the purchase price, payment terms, and transition period.
When creating a sales contract, consider the following:
- Purchase Price: The purchase price should be based on your practice’s valuation, which should be determined by a dental broker or appraiser. This ensures that the price reflects the true value of your practice.
- Payment Terms: The payment terms should be clearly outlined, including the amount, frequency, and duration of payments. Clear payment terms help avoid misunderstandings and ensure a smooth transaction.
- Transition Period: The transition period should be clearly outlined, including the level of support and training provided to the new owner. A well-defined transition period can help maintain continuity and patient care standards.
- Asset Transfer: The asset transfer should be clearly outlined, including the transfer of ownership and possession of assets. This includes dental equipment, patient records, and any other tangible or intangible assets.
- Employee Agreements: The employee agreements should be clearly outlined, including the terms and conditions of employment. This ensures that staff members are aware of their roles and responsibilities post-sale.
By creating a comprehensive sales contract, you’ll be able to ensure a smooth transition and protect your interests.
Closing the Sale and Ensuring a Smooth Transition
Closing the sale of your dental practice requires careful planning and execution to ensure a smooth transition for both you and the buyer. A successful transition requires attention to detail, effective communication, and a deep understanding of the dental industry.
Steps to a Seamless Transition
- Finalize the Sale Agreement: Ensure that all terms of the sale are clearly outlined in the sale agreement, including the purchase price, payment terms, and transition period. A well-drafted agreement sets the foundation for a smooth transition.
- Transfer Ownership: Transfer ownership of the dental practice, including the transfer of assets, liabilities, and goodwill. This step involves legal documentation and coordination with various stakeholders.
- Complete Outstanding Loan Documentation: Complete any outstanding loan documentation, including the satisfaction of prior liens. Ensuring all financial obligations are settled is crucial for a clean transfer of ownership.
- Communicate the Transition: Communicate the transition to team members, patients, and vendors to ensure a smooth handover. Clear communication helps maintain trust and continuity during the transition period.
- Protect the Goodwill: Protect the goodwill of the dental practice by ensuring a seamless transition and maintaining patient relationships. A positive transition experience can preserve the practice’s reputation and patient loyalty.
By following these steps and strategies, you can ensure a successful negotiation and transition of your dental practice, achieving your goals and protecting the value of your practice.
the final step: Asset Purchase Agreement
Are You Ready to Begin the Transition Process with Triumphant Transition Partners?
Selling a veterinary practice is a significant decision that requires careful planning and execution. Understanding the process is crucial for a smooth transition. Get in touch with us today and see how a partnership with Triumphant Transition Partners can help you in your journey.