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How to Sell Your Dental Practice Without Brokerage Fees!!



 

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 believe locating a practice buyer is easy, right? Why do I need to pay a broker to sell my practice when I can do it?

 

What if I told you that you can find a buyer for your practice without the help of a broker? But....is that really what you want?

 

We always use the analogy 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 like Frye Practice Sales should be able to bring a competitive buyer pool to the table that will pay for their commission and still 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 say “yes”. This is much easier said than done.

 

Below are three reasons why you should consider using a professional like Frye Practice Sales when you decide 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 5-10 buyers to 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, “did I get a fair price?” or “was this person the best fit?”

 

Qualified Candidates

 

Another pitfall that ‘for sale by owner’ doctors fall into is 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" trying to get a steal on your practice? We vet all our buyers before a seller ever speaks one word to a prospective buyer because we understand that time is money, and we don't want to deal with people who are not serious about making a transaction or who are just difficult to work with. Currently, most major metropolitan areas have the luxury of having a substantial buyer pool so we’re less likely to deal with obstinate buyers. By using a broker like Frye Practice Sales, 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 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 often overlooked duty of a broker is their ability 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 a buyer may squash a deal for something that was so minor but had an easy solution—if only they communicated. The other party may never know what the 'true' reason 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 can be remedied without even approaching the opposing party because there was a simple solution or answer 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. 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, over time, 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 and modern but makes no money, before buying something that makes sense from a business and numbers standpoint.

 

 

 

Karl Frye has successfully brokered or funded as a Dental Banker, 500+ transitions.  Frye Practice Sales specializes in helping dentists with their transition needs, whether it’s 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 14 years.  FPS covers the entire state, and what’s better than our competition is you have one main point of contact.  Not multiple people who could drop the ball at the most inopportune time and kill your deal.  Unlike other brokerages who are unsure and insist 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 with whom to trust your legacy.  When interviewing brokers, our best suggestion is to ask them to provide a list of nearby practices they’ve sold within the last few years. Then 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 Frye Practice Sales & Healthcare Real Estate and find out how we can help you take that next step successfully.

 

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