Conventional wisdom dictates that a successful practice transition includes a well-constructed plan that recognizes and acknowledges what you are actually selling. Some 75 to 80 percent of transitions still follow the traditional model. The buyer purchases 100 percent of the practice, and the selling dentist remains onboard for a short period of time, usually one to two months. Why is this the case?... More »

I have been doing transition-planning for dentists for over 30 years. In the past five years, I have noticed a trend that represents a major change in thinking. Previously, it was customary for a dentist to start or purchase a practice, stay in the same area, and sell the practice in 25 to 40 years. Today, we are serving an increasing number of clients who want to sell their practices and move to... More »

Is this the right practice for you? How will you know if you should buy this practice? You have already decided where you are willing to look for a practice, whether it be a rural or urban area, and you also have decided on how long you are willing to wait to purchase a practice. Now, you need to consider how you want your new practice to look and feel. When you are looking for that right practice,... More »

Of all of the practice-transition strategies available to dentists today, one of the most popular is the buy-in. Buy-ins involve buying and selling interests in a dental practice. The interests may be any size — 10 percent, 49 percent, 50 percent, or more. Sometimes, it involves selling progressive interests, and, at other times, it involves selling a remaining interest by a retiring shareholder. While... More »

12/03 Malcolm Muggeridge, a British journalist, once observed: “Few men of action have been able to make a graceful exit at the appropriate time.” How do you know when it’s time to retire? Is there an internal body clock with a “retirement alarm” that suddenly goes off, alerting you that today is the day for this fateful event? During my talks and seminars around the country about practice transitions,... More »

Recently, a senior dental student told me that several of his instructors encouraged him to start a practice upon graduation. At the time of our conversation, he was well along in the process. He had located a vacant space in a shopping center located in a very nice part of town. He was working with a dental supply house to design the space to his satisfaction. When I mentioned to him that there was... More »

In the past 10 months, our firm encountered three dentists who experienced the same event — death. For two of them, the post-death sale went well, sparing their widows the further pain of a long, drawnout sales process or, worse yet, no sale. The third widow was not as lucky. In telling the stories of these three dentists, my hope is that it will make you think about your own situation and if you have... More »

Recently, my good friend, Dr. Peter Wylie, successfully encouraged me to ride on a European motorcycle tour. On the first day of the trip, I was absolutely thrilled. The weather was perfect and the countryside reflected ancient history. However, after a few miles, it became obvious that I was less skilled than the other riders. With hand signals, I encouraged several riders to pass me. Within a short... More »

The use of fractional practice sales/partnerships as a transition strategy for dentists who want to continue to practice in a partnership is growing in popularity. The definition of this type of transition strategy is “The sale of a portion of a dental practice to another dentist who will ultimately buy the remainder of the practice at an agreed-upon point, based on an agreed-upon method for determining... More »

As practices become larger, the two predominant questions that arise from a buyer’s perspective are: 1) Can I produce what the seller is producing? 2) Can I afford this practice? To address these questions, a buyer needs to dissect the seller’s current production and collections and evaluate his or her capabilities and level of skills. For each prospective buyer, the answer will be somewhat... More »