FAQs

A: See the link here to our general overview

A: As a buyer, you'll never pay Doctor’s Choice any money. However, be cautious—this isn't the case with all dental brokers. Some brokers charge buyers a percentage of the purchase price, while others may require you to sign a long-term dental supply agreement. Always ask brokers about their policies to understand how they operate. Keep in mind that you will need to hire an attorney and/or CPA to review contracts and provide guidance on tax implications.

A: We act as a transaction broker. What this means is that we are a neutral party and help facilitate a fair and equitable deal for both parties. Then you have seller representation which means that the broker represents just the seller. We have found that it makes buyers very uneasy about moving forward when our intentions are to only help the seller in the process and maximize their return. Therefore, we have found it best if we guide both parties through the process and don’t take ‘sides’. In short, we are there to facilitate the deal and inform both parties what is fair and customary which is known as a transaction broker in real estate terms. Contact us for further clarification.

A: Banks are EAGER to lend to dentists due to the fact that they have one of the lowest default rate of any business. Because of this, you will be able to obtain 100% financing for the practice and real estate (if applicable). Getting pre-approved or speaking with a bank should be done before even going to meet with a prospective seller. At this time, rates are anywhere from 4.5% to 5.5% depending on the bank and your financial credentials.

A: Depending on the buyer and seller and how diligent they are, on average we have seen this process take about 8 weeks AFTER you have found a practice of interest and submitted a letter of intent. The process can be longer or shorter depending upon the situation at hand.

A: First thing to know is that when we evaluate a practice that we will tell you, the buyer, what we feel is the fair market value. The seller typically then puts the practice on the market for that price however the seller can ask for more. If they do ask for more, we will be sure to tell you what we think is the fair market value. Remember, we are not here just for the seller as a transaction broker.

With that said, when doing an evaluation we look at multiple variables but the three main variables of consideration are: cash flow, technology/equipment, and location (both city and where in that city). If you would like to know more specifics, give us a call and we would be happy to provide more insight. As a buyer you want to know how much money will I make if I purchase this practice as well as how likely am I achieve these numbers that the seller was doing. What else should be considered:

• General Location
• Specific Location
• Lease Arrangement/Terms
• Active Patient Base
• New Patient Flow
• Payor Mix (Insurance)
• Patient Demographics and Saturation
• Equipment & Technology Component
• Operating Efficiency
• Staff Continuity
• Ownership History
• Schedule & Bookings
• Hygiene Revenue
• Marketing
• Accounts Receivable
• Fee Schedule
• Cash Flow / Net Earnings
• EBITDA

A: This is a common concern for buyers, but it's typically not an issue. Staff members need to work somewhere, whether with you or another doctor. Our advice is to maintain their pay and job responsibilities, as this will minimize the risk of losing them. From their perspective, finding a new job with equal pay and adjusting to a new doctor and team can be daunting, so they're likely to give you a chance. It's then up to you to build a positive relationship and retain them.

If you notice older staff members, it’s a good idea to ask the seller if they’ve mentioned plans for retirement.

A: No, most dental practice sale transactions do not require the previous owner staying on as an associate for a transition; particularly if the practice being sold is an insurance driven general practice. If the practice is large enough and can support more than one working dentist then it could be advantageous to the buyer to have the seller stay on if they are agreeable to do so however in most cases there is not enough chairs or dentistry there for two doctors. Every situation and practice is different so we are speaking from a general perspective. A FFS style practice may require a seller to stay on for a longer period of transition time post sale to help transfer the goodwill and introduce patients.

A: People are creatures of habit. Just as we explained in the section ‘will the staff stay?’ – the same rules apply. The patients have to see/find a new dentist regardless therefore they mine as well give you a try. You have their dental records and they know the staff members. Usually having the front desk and hygienist stay on board is a MUST. Then as long as the buyer is a good fit and matches the seller’s philosophy and doesn’t try and make too many changes, you will see patient retention in the 90%+ range. This is a proven fact.

A: As a broker we recommend both seller and buyer seek counsel from an accountant and/or attorney. Only an attorney can offer legal advice and only an accountant can offer financial advice. Buyer and seller are welcome to use any attorney or accountant they wish, we just recommend that they use someone familiar with the business of dental practices so they will be adequately represented and protected. Referrals for accountants and attorneys can be given.

A: We advise that directly out of school or residency that you work in the ‘real world’ for a minimum one year. We say this not as an attack on your clinical skills but you need to observe how others are managing their businesses and for you to learn the ropes. However, if you can find a seller who is willing to stay on long term and help mentor you whether it is clinically or business wise then it may be an opportunity you can pursue right out of school. These opportunities may be ideal but they are hard to come by.
In regards to cash flow and supporting your lifestyle and family, finding a practice typically will NET you more than an associate position. Buyers typically are scared to take out another loan on top of their existing student loans. As this can be discouraging, buyers need to find a practice that will NET them more than their associate position after all expenses. Banks are lending buyers 100% financing. Why? Dentists have one of the lowest default rates of ANY profession.

A: We as a broker just like when you sell your home, charge a percentage of the purchase price. This percentage varies depending on the purchase price of the practice. Call us to find out specifically for your situation what we would charge however the fee charged typically ranges from 5% to 10% of the sale price. Ultimately, the higher the sale price, the lower the commission. This is the standard fee charged by business brokers nationally.

A: The most important factor in selecting a broker is finding one with a superb track record and a quality reputation. Selling your dental practice requires significant knowledge of the dental industry and a practice sale which includes the specifics of your local market. Finding a buyer is just step one and making the process seamless and positive for both buyer and seller is the difficult part.

Things to consider about Doctor's Choice:

- 36 years of experience
- Family owned and operated
- 12 Agents local to your geographical area
- We help all only dentists (not a general business broker)
- Transition more dental practices than anyone else in the state
- Outstanding Reputation

For more information on ‘Why Doctor’s Choice’, read our article here.

A: Unfortunately, there is no answer to this question. We use the analogy it is like fishing – How long will it take you to take a blue marlin? On average we estimate this process to take 3 to 6 months depending on how attractive your practice is and where it is located geographically. Practices in rural settings can take one-year plus. It is important that you reach out to us well in advance of when you are ready to sell so we can give you a general idea of a timeline.

A: Unlike many other states, in order to broker a dental practice in Florida, you have to hold a Florida real estate license. There are countless brokers who do business in Florida illegally. If you are interviewing multiple brokers, may sure you ask if they hold a real estate license in Florida. Every agent that works with Doctor's Choice is licensed.

A: When doing a practice evaluation, any experienced broker or valuation analyst should consider a multitude of variables (see list below) but the considerations that hold the most weight are cash flow, location, and equipment value.
Other variables we consider:
• Payor mix
• Procedure mix
• New patient flow
• Lease terms
• Ownership history
• Active patient count
• And much more…

A: Most brokers, lenders, and buyers will want three years of P&Ls and tax returns, year-to-date P&L, production and collection reports, provider & procedure mix summaries, a fee schedule, an equipment list, lease documents, and a clear picture of staffing and key contracts. Our number one suggestion is to ensure that your lease is in good order before coming to market. Reach out to us to understand what a buyer and their lender will need in regards to lease.

A: Any broker should have any prospective buyer sign a non-disclosure agreement as well as ensure the buyer gets pre-qualified with a lender before disclosing any information on a prospective opportunity. Additionally, any buyer would have to either do a phone call or in-person consultant so we can get a feel for who they and what they are looking for. From here, we must balance having a competitive environment to ensure you have options to evaluate both fit and business terms along with exposure. The reality though is that the more people you tell, the more you risk someone breaching confidentiality. Due to this, we try to introduce buyers in tiers of five at time. If the first tier of five buyers who we think are the best fit don’t match, we introduce five more. Fortunately for a seller, it works both ways as buyers do not want their employers to know they are looking elsewhere either.

A: When we represent a seller, we focus on four critical outcomes:
• Maximizing Value – Creating a competitive environment with multiple buyers which drives stronger offers.
• Selecting the Right Successor – Ensuring your patients and team are placed in capable hands.
• Protecting Your Time – Only introducing pre-qualified, serious buyers.
• Maintaining Absolute Confidentiality – Safeguarding your practice throughout the process.

And perhaps most importantly, we manage what is often the most difficult phase: getting to closing. Aligning two doctors, two spouses, two attorneys, two CPAs, and a lender requires experience, discipline, and persistence. That’s where transactions are won or lost and where we bring the most value.