You’ve closed on a dental practice and need to transition from the previous owner’s management to your capable hands. Here’s how to tell the staff about the practice transition.
A buyer I’m currently working with found a good practice for sale and asked for my help with the analysis and LOI. The target practice is solid, collecting $680k last year with overhead around 62% and a decent amount of hygiene in a rural area of the country.
One problem. The price.
Shopping more than two or three banks almost always leads to WORSE outcomes for the buyer.
Higher rates. Higher fees. Worse terms.
I’ve mentioned before that the profitability of a practice has many factors. I’ve told you that one factor, such as asking price, shouldn’t necessarily be a deal breaker. That being said, there is another factor that is a huge deal. Any guesses?
Drum roll please … office collections. Why? Because there has to be enough money coming into the practice to justify the time, energy, emotions and expense you’re going to take on as a business owner.
Previously we discussed what to ask the seller during your first meeting. Here’s another one to add to that list:
“When are you planning to tell your staff and patients about the transition?”
The answer should be something like, “As soon as possible,” or even, “I already have.” If the seller says they’re putting off telling anyone until the deal is done, encourage them to reconsider.
You need to stand out. And one way to stand out is to look ready to buy now.
Looking ready and looking prepared to the seller and/or broker is key. This article will give you one tool in your toolbelt to maximize the chances that you look the best of all the buyers: a pre-approval letter from a bank.
Account Receivable is the money owed to a practice by its patients, which the patients have not yet paid. Often, the A/R is available to purchase along with the practice itself. The question is, should you buy it?
Brokers are a great source to find a dental practice for sale. But many buyers have trouble getting a response from brokers when they’re looking for more information on an area or specific practice.
I’ll share one near sure-fire way to get a broker to pay attention to you and get back to you. It’s quick and easy.
