As dental transition experts, we are often asked what are the steps for a dental practice transition. In this video, Matt and Doug walk you through the process from appraisal to marketing your dental practice to the process of closing the deal.
Matt Scherer: Hi, my name’s Matt Scherer. I’m with PMA Practice Transitions and I have my colleague, Doug Sellan with me and PMA assists dentists with transitioning out of practice ownership. And, today we have a great question, what are the steps to a transition? So, really the first step, and I know we’ve talked about this in previous talks, but it’s really getting your practice appraised. That’s the number one step. But, the way we do it is we have before we’ll do anything with bringing on a dentist to help transition a practice. We have to go and meet with the dentist in their office to see the office, to meet them, to make sure that it’s a good fit for us and them.
Doug Sellan: You’re right. I mean, the first step is really, are you at the point that you’re even wanting to have your practice appraised? Are you in that mindset or are you in that physical condition that there’s multiple different reasons why you want to sell your practice? It could be health, wealth, time. A lot of different components come into it. Maybe you think the community is what it used to be and it’s time to get out. But, there’s so many different steps values first. Once we assess the value, then we start with the marketing of it, which trying to find an individual, he or she could be coming from out of state or from around the corner and with our ability to market nationally, that certainly is an advantage that we bring to the table.
Matt Scherer: It is. And, then certainly once we do identify a buyer and they want to visit the practice, we’re accompanying the buyer and the seller at the practice so that way the buyer, if they have clinical questions, they certainly can ask the dentist. But, if they have questions about the appraisal or any of the numbers, then that’s where we step in.
Doug Sellan: We’re there to defend that. And, it’s not that we just came up with a number, but there’s a lot of experience and science behind this. So, when we are presenting a number to the individual.
Matt Scherer: Yeah. And, then once the buyer has been identified and they visited the practice, we then try to promote the buyer or not necessarily, I guess, promotes not the right word, but in encourage the buyer to submit an LOI, if they’re still interested in purchasing or still moving forward. Once the LOI is submitted, then certainly the buyer, we encourage them to go get financing and we can assist with that because of our backgrounds in banking.
Doug Sellan: Now, one thing all along the way we represent sellers. So, all the whole way through the entire process, the sellers best interest is our best interest. And, even though we’re telling the buyer to submit an offer, here’s a bank that they can work with, here’s a technology company they can connect with. Attorneys and accountants as well. It’s all about keeping the momentum going to get this to a point of transitioning. It may take one showing, or it could take dozens of showing to find that right individual to take over your practice.