Don’t jump at a call or letter from a large Dental Service Organization (DSO) asking if you want to sell your dental practice. Whether it comes out of the blue, or if the agent knows you are in the market to sell, you shouldn’t think they specifically want your practice. You are just one of many being “phished,” or cold-called, to see if you’ll bite.
Unsolicited offers like these are why it’s important to create a competitive market for your practice, even if the money being offered seems attractive.
While purchase price is important, you’ll want to consider other factors when making a deal, like whether or not it is a good fit for your staff and patients, and if the deal aligns with your future life goals. If money is your main priority, remember that other things, like post-sale compensation, post-sale equity or ownership, and a lower tax obligation can all sweeten the pot.
When it comes to selling your practice, we get it: not only do you want the best deal, but you also want to make sure you’re selling to the best buyer possible. By leveraging our extensive buyer pool network, our team has helped sellers create a competitive marketplace and match them with a buyer that is right for them and their needs.
So, how much is your practice really worth? While the DSO offer sounds good, and easy to navigate, remember that a competitive marketplace will benefit you more.
Recently JW Practice Advisory worked with a dentist who was planning to sell and received a $1.8 million valuation from a dental specific CPA. However, after an in-depth forensic analysis, we found hidden sources of potential profit and were able to increase the purchase price to $2.3 million.
Keep in mind that for every $10k in profit you add to your practice, you can get back at least four to five times that in value, which can end up covering the cost of the broker—and then some.
A broker that specializes in dental practice transitions can definitely help you find the right buyer, and the right price, with all the right pre- and post-sale factors that come along with it.
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