A change may be just what the doctor ordered. I’ve assisted dentists with their practice transitions for 35 years and, during that time, I’ve often been asked, “Why didn’t I do this sooner?” Once the choice and commitment is made and the practice is sold, many are finding new excitement for what follows. After completing the process of selling their practice, clients tell me that after years of the... More »

Dental-practice buyers and sellers may think that a sale is complete when the sale agreement is signed, the check issued, and handshakes completed. However, a successful transition needs much more work. Since 1984, I have sold over 250 practices. With this experience, I developed a practice-transition checklist. Results include the following: Less than 2 percent patient loss six months after... More »

As a result of the rapid growth in practices in recent years, practice buy-ins are becoming much more feasible than the traditional sole practitioner selling outright. With these changing demographics, a practice buy-in may be more desirable for a selling doctor. A buyin has the tremendous advantage of maximizing both the practice value and profitability. Nevertheless, some limitations on practice... More »

Following are excerpts from a private letter I recently sent to all my dentist clients. I believe all dentists will find the letter to be very enlightening. Dear Friend: It occurred to me that many of my long-time acquaintances may be at that time of their lives where they are contemplating retirement. At that point, typically, a dentist asks himself: How do I go about selling my practice? How... More »

To really understand the emotional trauma of selling one’s practice — especially after a lifetime of dedication — I believe one needs to have lived through the experience. It’s analogous to parenthood, until you’ve experienced the birth of your first child, you simply can’t know the emotional impact of being a parent. In some degree of logical order, permit me to review some of the doubts, the... More »

A Proforma is a tool that can be used to help a seller or buyer make many of the important decisions regarding the sale or transition of a dental practice. For the seller, it can help decide if an outright sale or a transition is best financially. The Proforma can help decide if the asking price is reasonable in the eyes of a buyer. It can help determine what needs to be done to help make the practice... More »

In my last column, we discussed the concepts of price and value. We defined price as the consideration (cash, note, barter, etc.) paid to acquire an asset, and value as the benefit (cash flow, enjoyment, etc.) received by the buyer of the asset. The importance of value to the buyer of a dental practice is emphasized, since value is the buyer’s actual takehome income. Our objective now is to learn how... More »

In order to achieve the healthiest transition solution for the solo practice, why not begin preparing for this change now? The time to begin the transition of a solo practice is now. This can occur at any age or stage of a practice. Some of the symptoms to alert the solo practitioner that the time is here are: Increase in stress Taking or needing more time off “Busyness” Decrease in motivation... More »

When a doctor in a group dental practice decides to sell his part of the practice, problems can develop. In most situations, the departing doctor receives, for his part of the practice, a certain price. In most cases, the new doctor replacing him will pay the departing doctor or the group the same price that the departing doctor receives. The problem that develops is that the new doctor is not sure... More »

There has been a great deal of discussion over the years about dental-practice price, but very little has been said about practice value. It is especially important that practice buyers understand these terms and be able to differentiate between them, since practice value has significantly more impact upon the future of buyers than does practice price. Price is the consideration (cash, note, barter,... More »