Buyers often have a disadvantage moving into position for practice purchase. Why? There is either too much information in the industry to break down the process, or the information presented has a unsubstantiated meaning. Leaving out key data often means vague interpretation which can lead to assumptions on the part of the buyer. Consequently, there are many venues and training options for buyers. Unfortunately, most advice is often positioned on the sale itself. It’s a logical start, however, we have seen many buyers skip processes and miss opportunities in revenue boost. So often, it’s the mere transition steps that are overlooked simply because there are limited experts in the “After Purchase”. Being misinformed or uniformed is a difficult position to start navigating business and employer ownership responsibilities. Negotiating purchase of a dental practice
Be Aware-First Things FirstStep 1: Be aware that preparing for purchase should include the following steps.
- Find a practice you are truly interested in purchasing (Directed and offered by Brokers/ Transition Consultant or Non-broker) * Be aware that the Seller's Broker is NOT your Transition Consultant.
- Get approval from a lender
- Sign the Letter of Intent for the offer (advise a Dental Attorney to review)
Build your Transition Advisor Team
- Speak to a Buyers Advocate Transition Consultant-Advisor. Reach out even while pending approval.
- Get your Comprehensive Practice Evaluation / Due Diligence completed by Buyers Advocate Transition Consultant Advisor. (This is your snapshot of the practice operation)
- Get your Dental CPA Advisor -Due Diligence
- Get your Dental Attorney Advisor assigned.
Be Aware- Moving forward with Purchase?DON’T STOP NOW!Step 2: Be aware that once you have decided to move forward with the practice purchase, understand the real work and success for your practice transition depends on the framework you create at this time.
- Set up your new business properly to become an Owner and Employer.
- Design the most efficient way to follow the Attorney Agreements and multiple tasks of transitioning Insurance, software etc.
- Learn how to effectively transition the patients and team to earn trust quickly.
- Know that patient retention is one of the most important opportunities you will have from day one. (Don’t risk losing 10% of the patient base-national average generally means “winging it”)
- Setting your own goals and financial well-being should be established immediately.
- Establish best practices standard of care and bridging philosophies.
- Take the findings from the Comprehensive Practice Evaluation (snapshot of the practice operation) to build on the strengths and enhance the weaknesses of the practice.
- Move into position on your first day to engage your team and onboard them correctly.
- Have a true plan to transfer trust with patients to retain them.
- Know how to set up all areas of the practice introducing the transition steps outlined in the Buyers Advocate Transition Plan.