Dental Practice Broker Serving Florida, Georgia, North Carolina, and South Carolina
View Our Website and Listings Here: www.doctorschoice1.net
South of Brooksville, North of Tampa. Fantastic opportunity for someone who likes to place implants (mostly mini) and do dentures. Well established high end practice dong about 1.2 million on 4 days and is all FFS. Building available with about 3000 SF with a lab and with possibly even more room for expansion. Paperless, laser, digital pano, this one has it all with much referred out. Call for more details!
Listing ID: MS1618
Morcie Smith 727-544-4385
By Larry Chatterley and Randon Jenson, CTC Associates
The goal of any associate-type arrangement is to create and maintain a mutually rewarding personal and professional relationship between two or more doctors. Unfortunately, many associate arrangements do not address one of the most fundamental elements for a successful relationship, that is, does the dental practice have the capacity to sustain both doctors?
With that in mind, here are some key areas related to the dental practice financial capacity that need to be addressed before entering into an associate arrangement. The key questions are as follows:
Most associates are paid a percentage of their respective gross production. In most markets and situations, this percentage for general practitioners is about thirty percent. (Specialty practices/specialist associates are often paid a higher percentage.) It is not uncommon, however, to see a flat wage or salary paid as well, or a variation of the two. In other words, the associate is paid a flat rate per day (i.e. $500) or 30% percentage of production, whichever is higher. This method is particularly effective in situations where it may take the associate several months to “ramp up.”
However, the host doctor should expect to see a consequential decline in income over the short term as he/she subsidizes the associate’s income via the draw. This will last until the associate’s percentage wage is sufficient enough to cover the minimum, at which point the host should expect to begin earning an override on the associate’s production. The question here is if the dental practice is in a financial position to subsidize the associate wages over a 6 to 12 month period. If not, then maybe step back and reassess the situation.
Years ago this was not the case. One could just add another doctor and more new patients would flow through the door. This has not been the case in the more popular and competitive areas of the country for more than a decade.
If you or your practice are experiencing greater patient flow than you can comfortably handle, then you might be good candidate to hire another pair of committed hands to handle the load. If not, and you still want to hire an associate, you must assess the dental practice transition potential and create an effective game plan to increase patients or reduce overhead.
High end practice that did about $935,000 in 2015 on 3.5 days. 5 ops with room for more, about 3000 SF, stand-alone building available, all endo and most ext. referred out, PPO & FFS, Digital Pano, Itero, paperless and chartless, laser, Isolite, microabrasion, and electric handpieces. Beautiful practice in a great location with lots of walk-ins. This is a nice one that has it all and will not last! Call Morcie to get more details 727-544-4385.
Listing ID: QW88407
For a NAPB dental practice transition broker, negotiation is part of the job. From partnership buy-in agreements to space sharing agreements and everything in between, our days are spent dealing with contracts and covenants. Most of the time, negotiations go smoothly, but if one derails, it can cause a tremendous amount of stress, frustration and holdup for all parties.
The ultimate goal when buying or selling a dental practice is for all parties to walk away from the table feeling like they got a “good deal.” Tensions can run high when making such a big transition. The seller may be embarking on a new phase of life and they want to capitalize on years of hard work. The buyer may be just starting out or making a shift in their career and they don’t want to bet on the wrong horse, if you will.
Trusting in the process and having a sense of humor can really help your dental practice transition.
Here are a few tactics to negotiate like a pro:
As we’ve discussed in previous articles, because there is so much intrinsic and intangible value within a dental practice, it’s important to uphold goodwill throughout the dental practice transition process. There is more than just a building, equipment and money changing hands. There’s a history, patient relationships and a presence in the community. All these factors require some fluidity and sensitivity.
Call your Doctor’s Choice today for a free consultation.
We can not stress time and time again how important your lease situation is. Whether you are setting yourself up to sell in the near future or plan to drill for 20 more years. As a dental practice owner your two biggest expenses are payroll and your rent / mortgage payment and you have to manage this overhead to make your business as profitable and safe as possible.
Your typical lease term for commercial deals are 5 years with an option to renew period of “X” years. When you sign a 5 year lease or more, it is vital that you as a tenant get something in return. Whether it be new ceiling tiles, flooring, paint, or cabinets – the landlord should keeping your space modern for you! As a tenant, you could invest thousands of dollars but get nothing out of it when you leave and this is every landlords dream. Every lease situation is different and if you are in a competitive market with no vacancies in your plaza or building then the landlord may have more leverage to not do these tenant improvements. Every situation is case by case however in most situations the tenant has the upper hand. On top of this, every time your lease is up for renewal you should be paying fair market rent for that time period unless your rent is cheaper than fair market value. Many doctor has a 3 to 5% rental increase per year that compounds. After 10, 15, or even 20 years it can add it fast. If you are paying less than what is market value, clearly do not bring it up to the landlord however this again is rarely the case with the market on the rise.
We have run into various situations where a doctor is going month to month and does not even have a lease. PLEASE do not get caught in this trap as if your landlord isn’t pestering you to sign a new lease then something is off. You could get kicked out with 30 days notice and be scrambling to find a new location. It is essentially more risk for you, the tenant.
If your have further questions, reach out to us for help.
If you are looking to establish or maintain a reputable and profitable practice you will sometimes find it hard to balance being both a dentist and a businessman.
Regardless of where you put most of your attention, you need to understand the importance of effective marketing.
Much has been said in the last few years about the increasing importance of digital marketing and the changes in both technology and clients, as Gen Y becomes the largest demographic of consumers in the world.
Many businesses however still focus heavily on print related marketing – they hand out physical business cards every chance they get and are committed to using direct mail as part of their marketing strategy.
So one pressing question is; is direct mail still effective?
And the answer is a resounding YES!
This is for a couple of reasons. First, for local businesses such as dental clinics, a large part of the marketing is based on building a personal connection and a printed letter or handwritten message will always feel more familiar than an email or text.
Second, the Internet can be incredibly competitive, and as more and more businesses are focusing their efforts on Internet marketing, the potential for you to have some success with direct mail increases.
So how can you make sure you direct mail is effective?
We’ll cover this in more detail in a future post, but for now here are a few points to keep in mind.
Integrate your online and offline efforts. Your mail should include a call to action and a link to your website, as well as a contact email and Facebook details for your practice.
Provide offers. If you offer coupons or discounts for whitenings and check ups then prospective clients are far more likely to open the mail. Something as similar as a 25% discount for an initial consultation could give you huge value in the long run if it brings you a long term client.
Make it easy to read. People are used to reading differently in the Internet age – their attention spans are a lot shorter. So don’t include a mountain of text in your letters, just make sure it is simple, spaced out, and anything important is bolded.
Track the mail. Don’t just send everyone the same mail; existing customers and prospective customers should receive different messages. Customize the letters as much as possible depending on whom the client is that you are sending it to.
With a little focus, direct mail can bring your practice a lot of value. Experiment with different offers and formats today and see how effective they are at generating leads in your area.
High end mostly FFS practice that produced $620,000.00 in 2015 with numbers increasing each year. Located in a 3000 sq ft building with superior location and exposure off the main road. Averaging 30 NP per month and 31% hygiene to revenue numbers. Extremely healthy practice working only a 3 day work week. It has all the bells and whistles including digital radiography and a CEREC machine. All production is bread and butter dentistry. Call Dr. Carlton Schwartz 850-258-2457 for more information.
Listing ID: CS28216
A common question we get from buyers and sellers is: how much will it cost me to get through the process? There is no exact answer as every deal is different and can entail more or less hours from your advisers. This post will outline so of the average costs for you to expect to get through the process from start to finish.
No one wants to pay a lawyer (or broker) but I truly believe that if you have the RIGHT people involved that they will save you time, money, and headaches and you should see this value post sale. There are so many things that hurt you if you are not aware of the ramifications. Doctor’s Choice highly advises that you find an attorney that is familiar with dental acquisitions as they are worth every penny from our experience and perspective. One of the first questions you should ask is what is their hourly rate? The legal fees on your average deal range anywhere from $3,000 to $7,000 depending upon the hours put in. It could be less or more than this but we feel this is a good ball park to expect. Dental specific lawyers understand various things that a typical attorney would not like: what is a fair non-compete? What should the sellers reps and warranties be? And the list goes on.
2. CPA / Accountant
Again, having a qualified CPA / Accountant familiar with dental practice sales is recommended as others will not be aware of things like: How much is typically allocated towards goodwill? Hard assets? Ect. if it isn’t done right then it could cost you tens of thousands of dollars.Dental specific advisers understand how to structure the allocation that best fits your situation. For example, if you are a C corp then you could be taxed double on the sale of your practice if it is not structured accordingly. These fees typically range from $1,000.00 to $3,000.00.
3. Broker Fees
Lastly, the dreaded broker fees. As a seller you may be able to find a buyer on your own, however finding a buyer is only 25% of our job and you are only on first base at this point. Most dentists think all we do is find a buyer but that couldn’t be further from the truth. Our job is to find a buyer that matches the personality and practice philosophy of the seller, then to structure the deal as a win-win. This involves coming to terms on the price and post transition period. We are here to answers all your questions and make sure the process is as seamless as possible. Buyers are always looking for a reason to get cold feet and walk away or lower the price. Many times a buyers concern may not even be an issue after we explain why to them.
It is important for buyers and sellers to know and understand that every broker structures their commission differently. Some will charge both the buyer and seller, then some just the seller. Our company Doctor’s Choice only charges a seller however we act as a transaction broker which means that we do not represent the buyer or seller. Our job is to make sure the deal is fair and equitable for both parties involved as we are a neutral party that just helps facilitate the deal. BUYERS BEWARE: Dental supply companies that have gotten into the practice brokerage business are a bit more rogue about how they operate. Right before closing (and not before typically) they will approach you and tell you that you have two options: pay us a flat fee of $10,000.00 OR sign a dental supply exclusivity agreement for 2 years.
In conclusion, when working with Doctor’s Choice buyers will not pay us a penny and sellers will pay us a commission based upon a percentage of the sale price. Our brokerage fees vary upon the sale price but we are in line with the national average for business brokerage. Call us to find out what we would charge for your specific situation as it varies. We highly recommend reaching out 3 years before your target sale date so that we can help advise on items that will maximize your sale price.
Dental Practice Broker Serving Florida, Georgia, North Carolina, and South Carolina 