Tag: dental broker

The closing negotiations of a dental practice deal are imperative for your career. If you’ve practiced as a dentist and have decided to sell, you have likely poured countless hours into your practice. You’ve seen it all and have spilled so much blood, sweat, and tears while caring for your patient base. Successfully selling your dental practice is the final step in ensuring that your patients and practice are cared for. You want to rest easy knowing that your dental practice sale is successfully in its closing stages.

If you want to finalize your dental practice transition and close the deal successfully, you’ll need to come prepared, and that will almost certainly require outside assistance. Triumphant Partners has helped countless dentists do just this over the years and has identified a few items that are always worth having when nearing close. Read on to learn more! 

Financial Information

Any dental support organization or dental partnership organization will want to review your financials with a fine-toothed comb. They’re in the business of partnering with qualified companies, after all, and your financial data will be of the utmost interest throughout the sales cycle. 

This starts with a thorough and detailed practice evaluation at the onset of the sales cycle. Once you know the dollar figure of your practice, you’re better equipped to field offers and answer questions from buyers. This is the first step for financial documentation in the dental practice sale cycle; without a complete practice evaluation, you run the risk of accepting a below-market offer and could potentially leave tens of thousands of dollars on the table.

However, while practice evaluation is the first step, it is not the last.  The practice evaluation stage is usually followed by a review of your finances, which are documented thoroughly at the end of the deal. While you may have to disclose the below before closing, you should have most of, if not all of, the following at the end of the deal:

• Tax Returns
• Cash Flow Statements
• Evaluation of Practice Tech
• Collections Reports
• Production Reports
• Growth Projections

Operational Information 

Your practice is so much more than just financial information. You’ll need to have a slew of operational details as you prepare to close. The dental support or partnership organization will be interested in financials, but they will also be interested in ensuring operations can continue unabated after close. They could want to see any or all of the following to help achieve that goal. Even if all of the below are not necessarily required at closing, it’s recommended that you assemble and package everything you can to assist in the transition period. 

• Standard Operating Procedures
• Office Processes
• Staff Employment Documents
• Catalog of Inventory
• Full Assessment of Assets On Site
• HR Paperwork
• Information Surrounding the Storing and Management of Patient Data
• Practice Marketing Material
• Calendars, Log-Ins, and Other Necessary Operational Details

Compliance & Legal  Information 

The dental support or dental partnership organization you’re selling to will also want to ensure that all your legal affairs are in order. Transitioning a dental practice will require alignment between your attorneys and the buyer’s, which usually requires an extensive legal review. Be prepared to provide any of the following. 

• Purchase Agreements
• Business License
• Business Entity Information
• Deeds
• Corporate Charter
• Bill Of Sale
• Proof Of Safety Compliance
• Any Outstanding Legal Documents Or Legal Affairs

Cross Your Ts and Dot Your Is with Triumphant Partners

An industry expert in your corner is invaluable when selling your dental practice. A dental broker with established industry connections and a proven track record of closing beneficial deals for their clients is a tremendous resource to have when nearing the close of a deal. 

That’s where Triumphant Partners comes in! 

You have enough on your plate. Let the experts at Triumphant Partners help you gather all of the pertinent information and prepare to close your deal. Too many dental practice brokers treat their client practices as transactional deals; we know that your practice is one-of-a-kind and will always help you find the most qualified buyer for your specific needs and goals. Relational deal-making motivates our team; we will always bring that approach to your deal. 

The right buyer is more than mere financials; it’s a buyer who will integrate with the treatment philosophies, practice dynamics, and mission statements you’ve built at your office over the years. Triumphant Partners is here to help you find that buyer. 

We promise to…

• Always Represent Your Interests and Your Interests Only
• Help You Value Your Practice
• Guide You through the Sales Cycle
• Assist Your Attorneys with Valuable Information at Close

Call your friendly Triumphant Transition advisor for a courtesy consultation today!

No industry is ever genuinely stagnant. New tech, regulations, consumer preferences, and methodologies are constantly emerging and causing shifts in industry execution and standard operating procedures. 

Regardless of your industry, an annual review will almost always reveal sizable changes from the past year. While many sectors change year over year, the dental industry, in particular, is poised for a rapid acceleration in the rate of change as new technologies and patient preferences dominate the field. If you’re monitoring the dental industry, you’re likely aware of just how important the following trends are for those practicing. 

The experts at Triumphant Partners leveraged their industry knowledge to put together the below list of dental trends to watch. You are likely already seeing some degree of impact from the phenomenon below, and we expect that to continue in the months and years ahead. Better understanding the below is your first step towards capitalizing on the industry’s direction and planning accordingly. Read on to learn more about the dental trends we think you should be paying attention to! 

Teledentistry

Increased access and improved technology have led to a boom in teledentistry. The idea of seeing a dentist virtually for your dentistry needs was the stuff of science fiction a few years ago. Now, the medium is taking off and becoming more and more mainstream. The reasons are myriad, but ease of access, convenience, and the ability to care for mobility-limited or rural patients were top drivers. Teledentistry isn’t perfect for every practice, and the prevalence of technology can be a limiting factor for many dentists, particularly those in smaller practices. 

However, if you are a dentist looking to understand where your practice can better serve your patients, researching and implementing a successful teledentistry program is a great option. Most practices that have begun offering teledentistry have only done so post-COVID-19, so the medium is still in its infancy. However, we expect to see this form of patient care being par for the course of most dental practices by the end of the decade if this rate of adoption continues. 

Increased Demand for Skilled Positions

Dental practices require so much more than an excellent dentist to stay up and running. Experienced and professional support staff are paramount to your success as a practice. Practice managers, in-house marketers, billers, dental hygienists, and other support staff are essential to delivering good care. The industry is poised to see a growth in demand for these positions. 

Complexity of Practice 

Practicing as a dentist is more challenging than it used to be. Running a small business always requires wearing multiple hats, and dentistry is no exception. You may have gone to school to learn how to tend to patient needs, but your dental practice likely requires you to fulfill multiple roles. You may find yourself serving as an in-house marketer one minute, a procurement specialist another, and a facilities manager by the end of the day. This shows no signs of abating. New technology, greater competition for skilled support roles, and new changes to the network landscape all put more and more stress on small, independent dental practices. This has, in turn, led to our next trend: dental industry consolidation. 

Consolidation

Industry forecasts expect dental consolidation to continue throughout the next few years, and the reasons for this are straightforward. Large and operationally efficient dental support organizations (DSOs) are much better positioned to provide support at scale than small, independent practices. DSOs can more efficiently provide everything from procurement and billing support to technology investment and upskilling. This is a compelling offer for many dentists, especially those working upwards of 70 hours a week to keep the practice afloat. We expect to see more and more dentists look to sell their practice to a DSO in the years ahead to streamline their operations and better tend to their patients. 

Call Triumphant Partners 

Selling your dental practice can be a rewarding experience, but it can also be one of the most stressful and harrowing of your life. The industry is constantly evolving, and your practice could or could not be in demand. A seasoned transition partner who knows how to value a practice’s worth properly, structure transition deals for your benefit, and find the right DSO or DPO partner is critical.

That’s where Triumphant Partners enters the picture! Your practice is unique, and you should only be conversing with DSOs or DPOs that align well with your long-term goals! A savvy practice transition partner and advisor can help you find the right buyer and sell your practice on your terms and timetable.

Call your friendly Triumphant Transition advisor for a courtesy consultation today!

Congratulations, you’ve sold – or are planning to sell – your dental practice! This is an exciting time in your professional career, and there’s much to consider. However, your work doesn’t end at close. Rather, it’s just beginning. 

Transitioning a dental practice successfully requires deep knowledge of the industry, input from a number of professionals, and quite a bit of management on your side. If you’re not prepared, it can be easy to make common mistakes that will impact you and your business deeply. Triumphant Partners has overseen countless dental transitions and has noticed a few trends regarding less-than-optimal transitions. 

If you want to transition your dental practice, pay attention to these common mistakes. Your career will thank you for it. 

Mistake 1: Not Enough Time Planned

It takes time to transition the ownership of a dental practice. There might be situations where a selling dentist could conceivably leave their practice shortly after closing, but they’re usually few and far between. It’s much more common for dentists to stay on for a period of time. Your timeline from the decision to sell to close could be well over a year. Make sure you thoroughly plan and give yourself enough time. 

Trying to sell without enough time could lead to accepting offers you normally wouldn’t. It will take time to find the right buyer, vet them, negotiate, close, and transition, and you might be contractually required to stick around after the sale. Typically, we recommend planning on the sale and transition process taking a year or more. Keep this in mind as you plan your transition. The more time, the better. 

Mistake 2: Accepting an Unfair Offer

Business valuations are part-art, part-science. You might think you understand your practice’s worth, but don’t entertain any offers from DSOs without undergoing a professional practice valuation. You could easily accept a low-ball DSO offer for your practice and potentially leave hundreds of thousands of dollars on the table. 

The best way to combat this is to have an intensive valuation of your practice. Any seasoned practice valuator will take the time to review your financials and help you understand what your practice is worth. There are several ways to value a dental practice, but it’s best to focus on your EBITDA. Understanding your Earnings Before Interest, Taxes, Depreciation, and Amortization will give you a quick view of your business’s value versus its obligation. 

Mistake 3: Failing to Plan the Details

There are many details within a transition agreement that all have a significant impact on your practice. Timelines, hiring decisions, and operational planning must be detailed within your contract. Failing to pay attention to these details can greatly impact your satisfaction with your agreement.  Nothing is worse than signing on with a DSO without fully understanding your agreement, as this can break your business relationship. 

To avoid this, be upfront with your potential DSOs about terms when considering an offer. The more visibility you have into what you can expect post-sale, the better. Having a trusted and experienced attorney in your corner is also a must for this stage. 

Mistake 4: Going It Alone

So many details go into transitioning the ownership of a dental practice. You likely are still trying to take care of your patient base and prepare for the next stage of your career. Tackling this project without seasoned, industry-experienced support is a recipe for disaster. The right advisor can help you sell your practice quicker, above the asking price, and on your terms, all while saving you time, stress, and energy. 

If you’re looking for help selling and transitioning your dental practice, look no further than Triumphant Partners! We are your dedicated partner in helping you through the dental practice transition process! You’ve put a lot of time and effort into your practice. Make sure that you have a partner who recognizes that work and can help you smoothly transition your dental practice. 

As your dental transition advisor, Triumphant Partners is here to assist with the following:

• Evaluations
• Finding & Vetting Potential Buyers
• Equipping Your Attorneys with Pertinent Data through Close
• & More!

Call your trusted Triumphant advisor today for a courtesy consultation!

The daily life of a dentist can be hectic. Many dentists find their workdays filled with patient care, continuing education, and practice administration. Against this backdrop, dentists can struggle to make time for their personal lives. The difficulty of running a practice and providing excellent clinical care simultaneously often leads to many dentists looking to sell their practice to a dental support organization or dental partner organization. This can be a great move for many dentists. 

However, if you’re already busy as a dentist, you likely don’t know the ins and outs of selling a dental practice. That’s understandable. You’re trying to take care of your patients and run a business. You don’t know the finer points of dental practice sales. The financial statements you need to sell your practice successfully are one such finer point. 

Triumphant Partners has facilitated many dental practice transitions over the years, and trust us when we say that getting your financial statements in order is of the utmost importance.  This will help your broker at the negotiating table. Why? The value of your practice and its projected future earnings are integral bargaining chips when you’re negotiating with a DSO or DPO. Correctly supplying financial statements is the easiest way to increase the value of the final offer you receive from a DSO. Pay attention to the financial statements below as you consider selling your dental practice. 

Good Financial Hygiene Helps The Sale

Before we run through the specific financial statements needed to sell, it is worth pointing out that good record-keeping is crucial to selling your practice. The better you keep up with the financial management of your practice, the easier it is to get your practice in order when you decide to sell. Clean records, good notes, up-to-date balance sheets, well-maintained payroll, detailed profit and loss statements for the past couple of years, and up-to-date dental practice management tools will help you in your quest to sell.  

Relevant Contracts & Paperwork

Every practice’s specific situation is different, so your needs here may differ vastly from those of another dentist. If you want to sell your dental practice, know that the interested partner will want to see relevant contracts. Everything from staff contracts and procurement orders to real estate documents could be applicable. 

While you work to gather this relevant information, pay close attention to all HR information about your employees as you sell to a dental support organization. While you’re passing over employment contracts and hiring information, remember to clarify the details of each employee’s employment.  DSOs will want to know the start date, pay rate, role, benefits, and last raise date of every employee at the practice. This information will expedite and simplify the process for all parties. 

EBITDA

The process of valuing a dental practice can be unwieldy. Different practices exist in various markets, each with unique business situations, patient bases, and company sizes. Measuring practices by collections or cash flow can be useful, but these methods smooth over many important contexts. For instance, a large practice might collect more than a smaller practice but have much higher operating costs. How, then, can dental practices be valued? 

Earnings before interest, taxes, depreciation, and amortization – or EBITDA for short – is the simplest yet most accurate yardstick to judge dental practices. This approach lets you compare different practices across a single metric. Be sure to accurately assess your practice’s EBITDA before you sell. If you don’t know this information, consider a specific EBITDA evaluation to ensure you have the most accurate assessment possible as you sell. 

Partner With Triumphant Partners

Are you a dentist looking to retire or transition out of dentistry? Selling your dental practice to a dental support organization or another doctor may be your best decision, but you don’t need to go it alone. Selling a dental practice can be complicated, technical, and intensive – partner with a dental broker and dental advisor to represent your interests and receive the best possible terms. 

By partnering with Triumphant Partners, you’ll receive:

• A Dedicated & Trusted Dental Advisor Who Only Represents Your Interests
• Access to Our National Private and Group Buyer’s Network for Quick Access to Interested Dental Buyers
• Assistance with Qualifying & Screening Prospective Buyers
• Access To Our Dental-Specific CPAs For The Best Dental Accounting Expertise
• A Review Of Your Dental Ledger For The Past 3 Years To Ensure Accurate & Informative Information and the most value. Every dollar we uncover for you is worth $5-$15.00 dollars on the market
• A Custom and Tailor-Made Practice Evaluation
• Relevant Financial Information to Equip Your Advisor and Dental Practice Broker with Triumphant Partners at the negotiating table

Contact your trusted Triumphant Advisor for a courtesy consultation today! (Please add info@triumphanttransition.com and our web address)

If you’re trying to sell your dental practice, you may have been fortunate enough to receive an offer. That’s a good sign! It shows that you’ve built a solid and resilient dental practice. Not only that, but it’s also a sign that a dental support organization thinks the same way and is willing to buy your practice from you. 

However, receiving an offer on a dental practice is just that – an offer. You still need to ascertain if the offer is fair and if the dental support organization aligns with your goals and long-term needs. Think of this as a “marriage” and talking with DSOs and DPOs as the “dating” phase. If you’re a dentist, you might not have sold many small businesses and can thus be forgiven if you feel overwhelmed by the process. Also, note that each DSO spends roughly $250,000 on direct marketing and mailers to dentists and practitioners because, as the old adage goes, buy low and sell high.

How can you tell if a dental practice offer is fair? Try using the methods below to get a feel for the offer. If one or more of the below is true, you can rest assured that your dental practice offer is fair. 

You’ve Received Multiple Assessments

Valuing a practice can be difficult. The best way to ensure that your dental practice offer is fair is to receive multiple assessments. It’s quite easy for two assessors to have slightly different takes on the cost of a dental practice. Multiple assessments reduce the odds of one assessment being taken as gospel truth. 

This is especially worth remembering if you’re receiving an offer directly from a DSO. These DSO offers are typically lower than the market at large and should never be taken at face value. Additional assessments should be used to counter low-ball offers and give the selling dentist leverage at the negotiation table. If you have met one DSO, you have met only one DSO. 

A savvy assessor will also use multiple assessment methods. If various methods show comparable asking prices, you can rest assured that you have a good gauge of the practice’s value.

A qualified assessor will consider your practice’s:

• Cash-Flow
• Future Earnings
• EBITDA
• Value of Current Assets
• Active and New Patient Base
• Payor Mix
• Competition 
• Marketing spend and branding
• Practice turnover

A custom valuation of the practice is always recommended. A rule-of-thumb valuation might give you a ballpark estimate, but that’s not good enough to sell your practice, which is likely the biggest deal of your life and will directly impact your future and indirectly your team’s future. Trust us; get your practice assessed so you are better positioned to resist unfair offers to buy. 

You Know the Market

A way to tell if an offer is fair is to be aware of trends within the market. If you know what comparable dental practices are going for, you’re well-positioned to push back against unfair offers from DSOs. 

It is worth remembering that this is more complex than knowing what a dental practice in your market sold for. A multi-associate dental practice that owns multiple pieces of real estate will go for a much higher price than a solo practitioner’s dental office. Inversely, a practice with cutting-edge, high-grade medical equipment might be worth more than a practice of the same size with older tech. You must have a trusted advisor to help you through the process and advise on what is and isn’t fair for your practice firmographics. There are many metrics outside of % of collections or EBITDA to determine the true value of your practice. As a sell-side advisory with buy-side experience, we know the trends and metrics that matter for you. 

You’ve Reviewed the Fine Print

It’s easy to get focused on the asking price when reviewing the offer. You should stay focused on this figure, as it’s an important part of any deal. However, the fine print is an often-neglected piece of the puzzle that can make or break your satisfaction with the deal. The deal terms, culture and partner are just as, if not more important for you as a seller. The value will be there if you have the right partners, but anyone can offer a high valuation, but not everyone can get you the high valuation. 

Consider key decisions like hiring, firing, buying power, marketing, the experience of the DSO, who is their sponsor, have they recapitalized healthcare or any platform before. You will be asked to stay on as a dentist with a dental support organization after closing; you might expect to retain control over these decisions and will have full autonomy with the right DSO. If the fine print of your deal specifies that the DSO can hire and fire, you might be in for a rude awakening. 

Few things can sour a business partnership as quickly as differences over business decisions. If your deal contractually obligates you to stay on despite these differences, you may be stuck in an unhappy business partnership. Reviewing the fine print of any terms is necessary to ensure you aren’t stuck in an unfair deal and having a qualified representation that knows the market and timing matters. 

The DSO Aligns to Your Goals

It can be challenging to gauge, but not all DSOs fit all dentists well. Each has its own specific policies, paradigms, and standard operating procedures. A DSO might offer favorable terms and a fair price and still not fit your particular needs well.

You must understand exactly why you’re selling your dental practice and what you want out of the sale. Once you understand this, you’re well-positioned to review offers from DSOs and compare these offers against your unique goals. 

If all of this is overwhelming, know that help from a qualified dental broker is available. Selling and transitioning a dental practice is difficult, tedious, and you don’t know what you don’t know. A trusted partner in the process can help you from listing to closing and everywhere in between. Moreover, they can even help you sell your practice above the asking price and the terms you deserve while impacting your legacy, team, and family in a positive matter. 

An excellent dental broker will:

• Help you screen buyers and vet them thoroughly 
• Assess your practice to help you understand its value
• Have experienced healthcare CPAs and underwriters
• Experience on both the sell-side and buy-side
• Know what metrics matter to a DSO and which ones do not 
• Can handle the lease terms as well as practice terms
• Experienced and have a strong network and relationships with the buyers
• Equip your attorneys with relevant documents
• Serve as a strategic consultant throughout the process
• Offer unique insight into the market as a whole
• Have experience in selling and buying dental practices
• Know the timing of an exit of a DSO and their Sponsorship
• Know the DSO agreements, deal structures, and C-suite level team members

Are you ready to sell your dental practice? Your trusted Triumphant Partners advisor is available for a free courtesy consultation to discuss your unique needs. Call Now!

If you’re a dentist contemplating selling your dental practice, few things are as important as your practice’s value. The dollar value assigned to your practice is not only a foundational element for your financial health but also has a massive impact on the deal.

 A high-dollar figure practice gives you an essential chip at the bargaining table when negotiating with a dental support organization or dental partnership organization. If you plan on selling your practice and staying on board in a dental partnership agreement, you are also incentivized to see the practice’s value rise even after the sale. Regardless of which camp you fall into, a rise in your practice’s value is always good.

However, increasing the value of your practice, whether you intend to sell or stay on as a partner, is challenging.  You may already be up to your neck in clinical care, administrative duties, and operational tasks. Finding the time to increase the value of your practice is a challenge. Luckily, there are proven ways you can increase value and plan for your financial future while still tending to your dental patients. 

Get an Accurate Assessment 

The first and easiest way to increase your dental practice value is to ensure you have the most accurate assessment! Too many dentists get caught up in the hustle and bustle of maintaining a dental practice and never get around to assessing their practice’s value. 

Even if you’ve had a valuation done in the past, you must understand whether or not it was accurate. Staying current with your practice’s value and getting a second opinion practice evaluation is the quickest way to ensure you know your practice’s true value. 

It can also be helpful to have multiple assessments done using various methods. Market-based, cash-based, and asset-based evaluations all have their time and place, and utilizing a variety of ways to appraise a practice offers a more complete picture. 

Invest In Tech

New tech is a crucial piece of growing the value of a practice. New and intricate medical technology can improve your practice’s operational and clinical efficiency, but investing in new tech can also increase the value of your practice. High-end medical equipment offers so many benefits for patient care that its presence can help improve a practice’s overall dollar value. 

Work on Improving Cash Flow

Improving your practice’s financial health can undoubtedly be difficult, but it will certainly increase the value of the practice. To begin, work on accurately measuring your EBITDA – or Earnings Before Interest, Depreciation, and Amortization. This financial score will accurately show how financially viable your practice is. 

From there, you can work on improving your overall financial health. Typically, additional cash flow or surplus revenue is one of the easiest ways to enhance the financial health of your dental practice. Additional customers, increasing collections per customer, or revamping your marketing are all great ways to do this. 

Partner With a DSO to Achieve Value

The aforementioned tactics for increasing your practice’s value are helpful to keep in mind, but they can be easier to set as goals than implement. If you’re struggling to keep the lights on, pay bills on time, and care for your patients, finding the time to improve cash flow, revitalize marketing, and invest in new technology is short of impossible. 

For dentists, partnering with a dental support organization is a great way to improve their practice’s value and operational efficiency, provide better patient care, and maintain a work-life balance. 

Partnering with a dental support organization can help with:

• Operational Excellence
• IT & Tech
• Hiring & Training
• Procurement & Purchasing
• Marketing & Advertising
• Continued Networking & Ongoing Education

If you’re looking to increase the value of your practice as an exit-strategy sale, a dental support organization or dental partnership organization could be helpful. These organizations will pay top dollar for lucrative and well-maintained practices, but a trusted advisor is imperative for your sales success. 

Selling a dental practice can take quite a bit of time, and there are many potentials for a deal to fall through. Everything from a lack of buyers to unqualified prospects to disagreement about terms and price can derail the sale of your practice. When you’re also attempting to keep the practice afloat and provide high-quality care, this can be too much for many dentists.

Partner with a dental broker for optimal outcomes! Triumphant Partners is waiting in the wings to help you sell your practice on your terms and at your price! As dental brokers, we represent your interests and your interests only. We have years of experience on both sides of the deal and leverage that experience to ensure you get what you need from your sale!

Partner with Triumphant Partners for:

• Access to Our Buyer’s Network
• Help Qualifying and Pre-Screening Buyers
• Practice Evaluation
• Help Through the Negotiation Process to Close.

Contact Your Trusted Triumphant Advisor for a Courtesy Consultation Today!

Knowing if it’s time to sell your dental practice is tricky. Your practice has likely been a massive part of your life, and you’ve poured a lot of sweat equity into it. Deciding to sell your practice is no small task, and you can be forgiven for wondering if this is the right move for this particular stage in your career.  However, while it may be a difficult decision, that doesn’t mean there are no considerable benefits to selling. Selling your dental practice can:

• Fund Your Retirement
• Build Generational Wealth
• Get Your Nights & Weekends Back
• Improve Management of the Practice
• Improve Patient Outcomes 

There are many reasons to sell, whether you intend to stay on as a dentist or leave the practice of dentistry, and it can be lucrative if done right. However, selling your dental practice can decrease your job satisfaction and leave money on the table if done poorly. 

 Consider these questions as you weigh the decision to sell! Knowing is half of the battle when it comes to selling your practice. Consider the questions below to maximize your dental practice sale.

Do You Want to Stay in Dentistry?

When considering selling your dental practice, you must consider your long-term goals. Many dentists look to sell their practice without fully understanding their long-term goals. The decision to stay in dentistry is one of the most vital – the reason why is relatively simple. 

If you are looking to sell, knowing what the buyer needs from you is critical. Some dental support organizations specialize in long-term transitions and will want to keep a seasoned dentist around for some time while they assume responsibility for the practice. Others are fine with cutting the selling dentist loose and assuming control of the practice almost immediately. 

Knowing if you would be amenable to continuing to practice dentistry is a vital part of this process. If you aren’t ready to stay in dentistry, selling your practice to a dental support organization that wants you to stay on isn’t a good call. 

Are You Ready to Retire?

Knowing if you’re ready to retire is key to understanding if you’re prepared to sell. Many dentists use the sale of their practice as a springboard into retirement. If you are nearing that stage of life and are seriously considering retirement, then the sale of your practice is a great tactic to enter your golden years on your terms. 

Selling a dental practice as a transition into retirement comes with its own considerations. If you hope to retire soon, you likely cannot agree to any deals that will keep you on board as a practicing dentist for a substantial time. 

Are You a Solo Decision Maker?

The sale of a dental practice can look very different from one practice to another. A solo practitioner will be able to decide on their own. A more extensive practice with several dental associates may see a different sales process. 

If you are a dentist looking to retire, selling to your younger associates is often a more straightforward and quicker process. If your associates cannot commit to buying your equity or are interested in bringing on external support, then an external buyer might be a good call. Consider your unique situation when deciding if you want to sell or not. You can sell as either a solo practitioner or a larger, multi-associate practice; the specifics will look slightly different from one instance to another. 

If You Want to Stay in Dentistry – On What Terms? 

If you want to stay in dentistry, it is essential to consider all of the factors. Do you like to pass most of the administrative maintenance of the practice to a DSO but stay on as a provider of clinical care? Do you want to stay on as a dentist with the DSO for a set amount of time and then transition to something else? Do you want to work with a DSO but need to retain control of key decisions like hiring, firing, and marketing? Knowing your desired terms is vital to determining if you are ready to sell. 

Sell Your Dental Practice with Triumphant Partners

Selling a dental practice is challenging work. Streamline and expedite the process with Triumphant Partners! Partnering with a dental broker with experience on all sides of the deal process can help you sell your practice on your terms and at your price to a buyer that meets your needs. 

Call your Triumphant Transition advisor for a courtesy consultation to discuss your options! We can help you:

• Come Up with a Go-To-Market Strategy
• List Your Practice
• Screen and Qualify Buyers From Our Private Buyers Network
• Draft Letters of Intent
• Negotiate Through the Close Process

Call Now!

If you’re a dentist looking to sell your practice, you might be wondering how to find the right dental practice buyer. Selling a dental practice is a complex, multi-faceted process. It will require special professional attention to many technical focal areas, like terms, market evaluation, and the specific language of the deal.

Finding the right buyer, a candidate perfectly well-suited for your practice, is imperative. Identifying the best transition strategy increases the odds that the complex dental practice transition process is as stress-free as possible. The wrong buyer increases the odds that the deal falls through or takes longer than you’d like.

One of the key advantages of using a professional dental practice broker is that they can alleviate the burden on sellers by handling the time-consuming and complex aspects of the sale. Their expertise in navigating legal and market challenges enhances the potential for a successful sale.

The Triumphant Partners team has put together their thoughts to guide you through the process of finding the right dental practice buyer. Read on to learn more!

Introduction to Dental Practices

Buying or selling a dental practice is a significant decision that requires careful planning and consideration of many factors. As a dental practice owner, it’s essential to understand the process and what to expect when transitioning your practice. A dental practice is a complex business that involves not only clinical dentistry but also financial aspects, staff management, and patient care. When buying or selling a dental practice, it’s crucial to work with a professional dental attorney who can guide you through the process and ensure a smooth transition.

A dental practice is a significant investment that requires careful planning and consideration. The process of buying or selling a dental practice involves many factors, including financial aspects, staff management, and patient care. Working with a professional dental attorney can help ensure a smooth transition and successful sale. Dental practice owners should understand the process and what to expect when transitioning their practice. A dental practice is a complex business that requires careful planning and management.

Understanding the Importance of a Successful Dental Practice Sale

Selling a dental practice is one of the most important decisions in a dentist’s career, requiring careful consideration and planning. A successful dental practice sale can have a profound impact on the seller’s financial future, as well as the future of the practice itself. A well-planned sale can ensure a smooth transition, maximize the sale price, and provide a positive outcome for all parties involved.

A successful dental practice sale involves several key factors, including:

• Accurate valuation of the practice
• Effective marketing and promotion of the practice
• Thorough due diligence and negotiation
• Smooth transition of ownership and operations

A professional dental practice broker can play a crucial role in ensuring a successful sale by providing expert guidance and support throughout the process. They can help you navigate the complexities of the sale, ensuring that you make the right decision tailored to your unique situation.

Understanding Practice Ownership

Practice ownership is a significant aspect of being a dentist, and it’s essential to understand the responsibilities and challenges that come with it. As a dental practice owner, you’ll be responsible for managing staff, handling finances, and providing quality patient care. When buying a dental practice, it’s crucial to consider the practice philosophy and whether it aligns with your own values and goals. A dental practice seller should also consider their transition strategy and how it will affect their patients and staff.

Practice ownership requires careful planning, management, and attention to detail. Dental practice owners are responsible for managing staff, handling finances, and providing quality patient care. When buying a dental practice, it’s crucial to consider the practice philosophy and whether it aligns with your own values and goals. A dental practice seller should consider their transition strategy and how it will affect their patients and staff.

Preparing Your Dental Practice for Sale

Preparing your dental practice for sale requires careful planning and attention to detail. Sellers need to decide on the best strategies to prepare their practice for sale. Here are some key steps to consider:

• Review your practice’s financials and ensure that they are accurate and up-to-date.
• Identify and address any potential issues or liabilities that could impact the sale.
• Develop a comprehensive marketing plan to promote the practice to potential buyers.
• Gather all necessary documents and information, including financial statements, tax returns, and practice records.
• Consider hiring a professional dental practice broker to guide you through the process.

By taking the time to properly prepare your dental practice for sale, you can increase its value and attractiveness to potential buyers, and ensure a successful sale. A well-prepared practice not only fetches a higher price but also attracts more qualified and serious buyers.

Ways Practices Find Buyers

1. Use Your Connections

If you’re looking to sell your dental practice, using whatever connections you have might be one fruitful option. You likely know plenty of dentists and those in the industry from dental school, alumni associations, and medical conferences.

Leveraging these options can work for some dentists. This approach does tend to work best if selling to another dentist. Many recent graduates are eager to own their first practice, and tapping into dental schools and alumni networks can connect you with these potential buyers. Most dentists won’t have extensive connections to dental support organizations, so finding a buyer through your own network is best for dentist-to-dentist sales. Understanding the motivations and desires of prospective buyers, such as seeking a financially sound practice and the opportunity to practice their preferred type of dentistry, can make your practice more appealing.

2. Contact a DSO Directly

Dental support organizations will field offers and inquiries around the sale of a dental practice and may even reach out directly to begin conversations with dentists. It is worth bearing in mind, however, that DSOs are incentivized to make low offers when propositioning a dentist. You likely will not get the best possible deal when contacting a dental support organization directly.

The DSO is banking on your unfamiliarity with your practice’s value and what is and isn’t a fair price. This isn’t, of course, a point of the process that you should be an expert on. You’re a dentist, after all, not an expert in business evaluation. Still, your lack of expertise in the process and lack of a clear benchmark to compare to an offer might result in a low-ball offer. Selling directly to a dental support organization without a trusted advisor to guide you through the process and transition doesn’t work well for many dentists. Engaging a knowledgeable dental broker can help ensure you receive a fair offer by managing marketing efforts and presenting only qualified buyers.

Another often neglected piece of the process is finding the RIGHT DSO, not merely one that is offering the right price. Suppose you’re fielding offers from a DSO or opening conversations up directly. In that case, you could forget to carefully evaluate each buyer against what you want from the sale of your dental practice. Ensuring that the buyers are serious about purchasing the practice and have the necessary qualifications is crucial for a successful transition.

3. List the Practice Yourself or Use a Dental Broker

Listing the practice directly is undoubtedly one of the most direct ways to garner interest in your practice. However, it may not always be a suitable method for all dentists. Sellers who have decided to list their practice themselves should be prepared for the challenges involved, as the result is often a deluge of DSOs and other dentists looking to buy.

You’re likely to spend most of your time fielding these calls and offers, many of which might not align with your needs and criteria for a buyer. Listing a practice yourself might work if you’re adamant about selling that practice outright as quickly as possible and don’t need to maximize the deal’s value. It likely won’t be a good call for a dentist looking to find a highly-qualified buyer.

What Buyers Look for in a Dental Practice

When buying a dental practice, potential buyers are looking for a successful and profitable business that meets their needs and goals. Here are some key factors that buyers consider when evaluating a dental practice:

• Financial performance: Buyers want to see a practice with a strong financial track record, including stable revenue and profitability.
• Growth potential: Buyers are looking for practices with opportunities to expand their capabilities, such as a growing patient base or untapped markets.
• Location: The location of the practice is critical, with buyers preferring practices in desirable locations with good demographics.
• Office environment: The office environment is crucial, as a well-organized office with strong policies and a conducive location can significantly influence buyer perceptions and decisions.
• Staff and operations: Buyers want to see a well-trained and experienced staff, as well as efficient and effective operations.
• Equipment and technology: Buyers are looking for practices with modern and well-maintained equipment and technology.

By understanding what buyers are looking for in a dental practice, sellers can take steps to prepare their practice and increase its attractiveness to potential buyers. This preparation can significantly enhance the practice’s appeal and ensure a smoother, more profitable sale.

Factors to Consider When Buying

When buying a dental practice, there are many factors to consider, including the practice’s financial viability, patient base, and staff retention. It’s essential to work with a professional dental broker who can help you navigate the process and find the right practice for your needs. A prospective buyer should also consider the practice’s equipment, technology, and referral sources. Careful planning and attention to detail are crucial when buying a dental practice, and it’s essential to prioritize your needs and goals.

When buying a dental practice, there are many factors to consider, including financial viability, patient base, and staff retention. Working with a professional dental broker can help you navigate the process and find the right practice for your needs. A prospective buyer should consider the practice’s equipment, technology, and referral sources. Careful planning and attention to detail are crucial when buying a dental practice. Prioritizing your needs and goals is essential when buying a dental practice.

Evaluating Practice Options

Evaluating practice options is a critical step in the process of buying a dental practice. It’s essential to consider the practice’s financial aspects, including practice expenses, revenue, and profit margins. A potential buyer should also assess the practice’s clinical dentistry opportunities and whether they align with their own goals and values. When evaluating practice options, it’s crucial to work with a professional dental attorney who can provide guidance on the legal and financial aspects of the sale.

Evaluating practice options is a critical step in the process of buying a dental practice. It’s essential to consider the practice’s financial aspects, including practice expenses, revenue, and profit margins. A potential buyer should assess the practice’s clinical dentistry opportunities and whether they align with their own goals and values. Working with a professional dental attorney can provide guidance on the legal and financial aspects of the sale. Evaluating practice options requires careful consideration and attention to detail.

Assessing Financial Viability

Assessing the financial viability of a dental practice is crucial when buying or selling a practice. It’s essential to review the practice’s financial statements, including income statements, balance sheets, and cash flow statements. A potential buyer should also consider the practice’s debt, equity, and valuation. When assessing financial viability, it’s crucial to work with a professional accountant who can provide guidance on the financial aspects of the sale. A fair market value of the practice should be determined, and the buyer should consider whether the practice’s income can support practice expenses, loan repayment, and a reasonable wage for the doctor.

Assessing the financial viability of a dental practice is crucial when buying or selling a practice. It’s essential to review the practice’s financial statements, including income statements, balance sheets, and cash flow statements. A potential buyer should consider the practice’s debt, equity, and valuation. Working with a professional accountant can provide guidance on the financial aspects of the sale. A fair market value of the practice should be determined, and the buyer should consider whether the practice’s income can support practice expenses, loan repayment, and a reasonable wage for the doctor.

Knowing You Have the Right Buyer

Knowing that you have the right buyer is a challenging task, and it is crucial to determine their ability to manage the practice effectively. Unfortunately, if you don’t handle it properly, you could end up in a disadvantageous business partnership. There are many potential downsides if you sell to the wrong buyer: Hiring a specialized professional for dental practice buyer representation, such as a dental CPA or knowledgeable dental broker, can help ensure a successful purchase and avoid costly mistakes.

1. You Might Sell at the Wrong Terms 

Many dentists want to stay on and practice within their practice post-sale to a DSO. However, if you sell to the wrong dental support organization, the terms of your time post-sale may not align well with your goals. Pay specific attention to the deal terms offered, such as ownership of certain decisions, profit-sharing, contracted time, and how and when you will be paid. If you don’t fully understand the terms of the transition process, you could end up with the wrong buyer. Therefore, having a tailored transition strategy is crucial to ensure the terms align with your unique goals and circumstances.

2. You Might Sell at the Wrong Practice Value

Without a clear understanding of your dental practice’s fair market value, you might sell the practice for less than it’s worth. If you hope to retire, build generational wealth, or jumpstart a new business by selling your practice, anything less than the best possible deal is unacceptable, as it can significantly impact both your personal and professional life.

3. You Might Surrender Key Responsibilities

The right DSO will tell you precisely what is and isn’t your responsibility through the transition process. The wrong DSO might leave you surprised. Unfortunately, the duties you might give up or assume ownership of are too important. Hiring, firing, marketing, and training are all responsibilities for which a DSO might have a set process. If it’s imperative that you maintain as much ownership in critical decisions involving the practice as possible, then the wrong DSO could break your satisfaction with the transition process. Professional dental brokers can also help connect sellers with qualified buyers, ensuring a smoother sales process.

If you’re considering selling your dental practice, contact Triumphant Partners for aid. By doing so, you’ll receive:

• Access to Our Private Buyer’s Network
• A Free Practice Evaluation
• Help with Screening Buyers and Navigating Letters of Intent
• Financial Documents to Aid Your Attorneys Through Negotiation

Reach Out to Your Trusted Triumphant Advisor for a Free Courtesy Consultation Today!

The Role of a Professional Dental Practice Broker

A professional dental practice broker plays a critical role in the sale of a dental practice by maintaining focus throughout the process. Here are some key services that a broker can provide:

• Valuation: A broker can provide an accurate valuation of the practice, taking into account its financial performance, growth potential, and other factors.
• Marketing: A broker can develop a comprehensive marketing plan to promote the practice to potential buyers, including advertising, networking, and other strategies.
• Negotiation: A broker can negotiate the sale of the practice on behalf of the seller, ensuring that the seller gets the best possible price and terms.
• Due diligence: A broker can assist with due diligence, ensuring that the buyer has all the necessary information to make an informed decision.
• Transition: A broker can facilitate a smooth transition of ownership and operations, ensuring that the buyer is well-prepared to take over the practice.

Focusing on the practice’s success and value during the selling process is crucial. By dedicating time and effort to focus on the bottom line, both the seller and the buyer can avoid a decrease in practice value.

Joining or merging with other dental practices or Dental Service Organizations (DSOs) can provide significant benefits. These services can enhance the profitability and operational capabilities of a dental practice, potentially attracting more clients and improving overall practice success.

Having various specialists in-house is essential to cater to the diverse needs of dental practices. A multi-specialty approach, featuring experts such as CPAs and marketing specialists, provides comprehensive support for clients buying or selling dental practices.

By working with a professional dental practice broker, sellers can ensure a successful sale and maximize the value of their practice. Brokers bring expertise, experience, and a network of potential buyers, making the complex process of selling a dental practice much more manageable and effective.

Reach Out to Your Trusted Triumphant Advisor for a Free Courtesy Consultation Today!