Selling a Dental Practice

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1.PREPARING TO SELL A DENTAL PRACTICE

Many dentists will arrive at a decision to sell after a long and thoughtful process of weighing up many issues and considerations and obviously realising it’s not an easy decision to make. The decision could be motivated by retirement wishes, health concerns, relocation or even changing circumstances or further studies. 

Decisions need to be made about exit strategies and planning for this is a vital part of the selling process in many instances. 

Palladium Business Brokers follow careful protocols and processes to appraise and evaluate the dental practice business and to help in preparing a dental practice business for sale. This can include, financial appraisals, information collection, presentation and preparing Information Memorandums on the dental practice for sale. 

The engagement of a specialised dental practice business broker such as Palladium Business brokers makes for a seamless and smooth sales process, whilst allowing the dentist and principal to continue to practice and run the clinic all through the selling process without having to deal with all the complexities and issues involved in selling the practice if they choose. 

Early planning will involve getting professional help and advice regarding accounting and legal issues. 

It’s important to build a highly qualified team of experts that will oversee and guide the dentist/business owner during the sales process. These usually will include accountants to help with appraisal, valuations and taxation issues. Solicitors for preparation of sale documentation, contracts, service and  Employment agreements, Lease Assignment documents and making sure regulations are complied with and of course the use of a specialised business broker such as Palladium Business brokers to help integrate and oversee the sales process with purchasers and vendors and all members of the selling team  

Palladium Business Brokers can help with ensuring the practice has undertaken optimising strategies to ensure the dental clinic is presented in the best possible light before commencing the sale process. 

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2.MARKETING, CONFIDENTIALITY AND NETWORKING  

Palladium Business Brokers as a specialised dental practice sales broker, have a large database of registered potential purchasers who are looking to purchase a dental clinic. These purchasers have usually outlined parameters and specific details of dental practices they would be interested in buying including location and pricing. When we commence the discussions, very limited information is provided until all potential buyers have been qualified and have signed confidentiality clauses which form a distinct legal contract to protect the practice owner and the identity of the dental practice business owner. This process allows full confidentiality which can result in smoother outcomes and possibly an even better sale price achieved. It also will result in better matches for purchasers and sellers.

We will prepare detailed and informative practice information guides that present the business in the best possible light and will help get possible offers for the dental practice sale. Potential purchasers are qualified by their financial resources, their background and also importantly their clinical background and experience. This is extremely important especially if the seller dentist wants to remain for a lengthy period of time and so as to make sure the clinical nature and scope of treatments provided by the practice are matched with the capabilities of the new purchaser We will endeavour to make sure that their values and reasons to buy the dental practice will be aligned and work in conjunction with the dental practice sellers exit strategy. 

The practice sales often can be conducted entirely confidentially through our networks with the vendor and business not identified.  

3.LIAISING SUCCESSFULLY WITH THE SELLING TEAM TO GET RESULTS  

During this process its vital to have open and honest communication lines between brokers and vendors and potential purchasers. Brokers can help to eliminate any minor hurdles, misunderstandings, confusion and help explain and clarify and help to broker a great deal for both parties. Palladium business brokers can help negotiate with vendors and purchasers with making offers and can help to structure a deal that’s acceptable to both parties.  

The broker will help guide and liaise with the vendors accountants and solicitors and be available to help gather information for all interested parties. Palladium Brokers will always have prompt and reliable lines of communication with all interested parties working towards successful sales.  

Because our broker, Dr Philip Baker, has personally been involved in many dental clinic sales as a purchaser and vendor, he is able to understand the intricacies of this process as he’s been there before and can also help in structuring and advising with exit strategies and post settlement subcontractor and employment agreements obviously in conjunction with specialised legal advice. 

4.ADVANTAGES OF USING A SPECIALISED BUSINESS BROKER  

A specialised business broker acts as a go-between that liaises with the various other parties to ensure the process is as stress-free as possible.  Palladium Business brokers have the experience expertise and knowledge required to help guide practice owners through the sales process. Our broker is a member of the Australian Institute of Business Brokers and is also still a proud member of the Australian Dental Association 

Using a specialised dental business broker will help to maximise the profit for the vendor by helping to present the practice in the best possible light. The broker has access to large databases of potential buyers. Brokers have access to large networks to help qualify buyers. Using a specialised business broker allows practitioners to focus on their clinics and preserve goodwill and reduce to any workload and stress associated with the selling process. Brokers will maintain confidentiality and have qualified buyers to help match the clinical specifics and selling circumstances.  

Palladium Business Brokers have the experience which will help maintain the right strategies and expertise to help facilitate a successful sale process and outcomes. We provide access and referrals to our clients to our networks of specialised professionals that help ensure correct procedures are followed which in turn will lead to successful outcomes for the seller in their dental clinic sale. 

Written by

Dr Philip Baker

As a former healthcare professional of 28 years, Dr Philip Baker is now a registered Sales Agents Representative and Business broker. Philip has been involved in numerous sales and purchases of large successful dental clinics. Philip is a Licensed Agents Representative and a member of the REIV and is also a member of the Australian Dental Association (35 years), Australian Institute of Business Brokers. Phil’s extensive experience and knowledge, along with his professional manner will help his clients achieve their ultimate aims and help achieve successful sales and purchases for their health care businesses.

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