Practice owners are well-known entrepreneurs. You are used to doing things yourself and doing it “your way.” When the time comes to sell your practice, you may naturally think that it can’t be that difficult to locate a buyer, could it? Why do I need to pay a broker to sell my practice?

What if I told you that you could probably find a buyer for your practice without the help of a broker? I always use the analogy with sellers that finding a buyer is like getting on first base; you are still a long way from home base or in this case, a closing. “Finding a buyer” is the key term here and getting that deal to a closing in an efficient and seamless manner while ensuring that you got the best price possible is the difficult part.

While the title of this article may be deceiving, the truth really is that a reputable and experienced broker in your market should be able to bring a competitive buyer pool to the table that will pay for their commission and still hopefully net you more money than doing it alone.

Think of it this way, to get to a closing you must get two doctors, two spouses, two attorneys, two CPAs, and one bank to all to say “yes”. This is much easier said than done.

Below are three reasons as to why you should consider using a professional when the time comes for you to sell your practice.

Getting Top Dollar

You may be able to find a handful of buyers on your own but know that you are limiting your buyer pool which can leave you wondering:

1. Did you get top dollar for your practice?

2. Did you find someone who is the best fit for your patients, staff, and practice as a whole?

3. Were you able to accomplish your ideal transition plan? E.g. Being able to work-back part time post sale to transition into retirement

The monetary aspect of a sale/transaction is an important one but generally it is not the only consideration. From the monetary aspect, we are oftentimes bringing 10+ buyers a quality practice opportunity which creates a hyper competitive environment and will oftentimes net you more money even after having to pay a commission. When making a major life changing decision like selling your practice, you do not want to lose sleep thinking to yourself, did I get a fair price? Was this person the best fit?

Qualified Candidates

Another pitfall that ‘for sale by owner’ doctors fall into are dealing with unqualified and/or unrealistic buyers. You may find a few buyers on your own, but can they get the funds to follow through and close? Are they “tire kickers” and trying to get a steal on your practice? We vet all our buyers before a seller ever speaks one word to a prospective buyer as we understand that time is money, and we don’t want to deal with people who are not serious about making a transaction or just difficult to work with. Currently most major metropolitan areas have the luxury to have a substantial buyer pool to not have to deal with these doctors who are obstinate. By using a broker, we take that workload of pre-qualifying buyers off your shoulders so you are not wasting your time.

The Value of a Middleman

Being able to communicate and work through conflict is something that sounds so simple but oftentimes is the sole cause of what ‘kills’ a deal. People are not good at communicating and working through conflict and to back my argument, the divorce rate in America is now ~40%. One job role of a broker that many overlook is that of being able to help mediate conflicts and provide an outsider’s opinion based on our reputation and experience. The opposing party is much more likely to tell the broker, a third party, what their true concerns are whereas we have seen it happen time and time again where a buyer may squash a deal for something that was so minor and there was an easy solution. The other party may never know what the ‘true’ reason was for backing out of the deal as they were scared to have a direct conversation. I would tell you that 7 out 10 concerns brought forth by a party are able to be remedied without having to even approach the opposing party as there was a simple solution or answer that the broker was able to provide.

Building off that, we are trying to bridge the gap between two very different generations of millennials and baby boomers. For example, we can have a practice that operates at 50% overhead and has net earnings of $500K+ but if it does not have newer chairs, CBCT, modern decor, etc then a buyer may need some convincing as generally the younger generation buyers want new and modern as they come from a technology age and want something familiar. It is our job to explain to them that if you are making $500k per year then overtime you can replace the equipment and decor. While the solution was simple, most buyers take everything at face value and will buy a practice that is new & modern but makes no money before buying something that makes sense from a business and numbers standpoint.

Why Doctor’s Choice?

Doctor’s Choice Practice Transitions is a team of experienced consultants who specialize in helping only dentists with their transition needs whether that be a doctor-to-doctor deal or affiliating with a DSO. We are privately owned and operated (just like you) and have a proven track record of success for the past 33 years. Doctor’s Choice has 11 agents in every major metropolitan area throughout Florida while other brokers only have one to three people who cover the entire state. Due to the lack of local support, these smaller brokerages will insist that you do the showing without them there! We believe that being involved in every step of the process and holding your hand through the entire process is what sets us apart from others. When interviewing brokers, it is essential to do your research and evaluate their experience, reputation, and services before deciding who to trust your legacy with. Our best suggestion when interviewing brokers would be to ask them to provide a list of practices that they have sold near you within the last few years. From there ask for a list of references so you can speak to previous clients firsthand about their experience with said broker. Most salespeople can talk the talk, but who is actually providing results for their clients?

The next chapter of your life starts HERE. Contact us today to learn more about Doctor’s Choice and find out how we can help you.