Sell Your FLORIDA practice
Before you decide to sell your
dental practice, you owe it to yourself to
call a Practice Sale Specialists.
Our highly professional staff is
your guarantee that Docfinder Brokerage Services will
help you get the best possible deal when
selling your practice in Florida.
1) Why do I need a dental practice
broker?
The selling of a dental practice is a
very complex process. It involves
many aspects that most successful
dentists are not exposed to
in the day- to-day operation of a
company. Dental practice owners in general
do not have the time or knowledge to
recognize and understand the
complexities of selling their own
business. Most businesses do not
have the personnel capable of
handling the sale of a business.
Selling a business involves much
more than just placing an ad in a
newspaper. You should rely on
experts trained in the sale of
businesses. Someone familiar with
the nuances of selling a dental practice
will prove an invaluable asset.
During the process, the Seller's
job is to do what he does best,
which is to run the practice as if
he were going to keep it. The
Broker's job is to confidentially
market the practice, find and screen
the Buyers, educate them, negotiate
the terms of the sale and provide a
buffer for the emotional highs and
lows that we all experience. The
Buyer benefits because the Broker
has already pre-qualified a business
before he lists it. He has
psychologically prepared the Seller
for the sale. He has also done a lot
of the legwork to assemble the
financial information and background
of the business. This helps to
reduce some of the uncertainty for
the Buyer and make this search more
efficient.
2) Why should I use Docfinder Brokerage Services?
Confidentiality, as well as
establishing the right selling
price, is crucial to the success of
the deal. As a business advisor,
Docfinder Brokerage Services has the ability to
maintain your confidentiality,
properly research highly qualified
buyers, utilize a worldwide network
to advertise your practice and
establish the right selling
price. We require that a
prospective Buyer review and sign a
non-disclosure statement outlining
his responsibility in having access
to a Seller's confidential
information. This occurs before any
detailed information concerning a
specific opportunity is released. We
are committed to protecting the
confidentiality of the
sale. We understand that public
knowledge of a potential sale can
affect the attitudes and actions of
patients, employees, competitors,
lenders, or suppliers
and thus the value of the company.
We also want to safeguard the
employment status of a potential
Buyer while he considers a very
important change for his future.
Let Docfinder Brokerage Services do the work for
you. We'll maximize the selling
price of your business. Our goal is
always to obtain the best deal for
each client.
Docfinder Brokerage Services
specializes only in Florida dental practices. We focus on your
specific industry. This means faster results for
you.
Our staff is one of the most
sophisticated and experienced in the
industry.
Our service, dedication and drive
is your guarantee that if you are
prepared to sell your business, we
are ready to sell it for you.
3) How is an offer structured?
Most practices sell for a percentage down. The remainder is financed
by the Seller, by a bank or through
family resources. Sellers generally
prefer to receive all cash at
closing and some Buyers are able and
willing to accommodate them.
However, Buyers are usually trying
to get the most bang for their buck
and will want to leverage their down
payment into the largest business
they can buy. Although, Buyers may
want to make a no-money or low-money
down offer, it is very rare that
they will succeed. Usually a
business cannot earn enough to pay
salary to the owner and service such
a level of debt. In addition, the
lender, whether it is the seller or
a bank, wants the Buyer to show his
commitment to the business by having
vested financial interest in its
success.
4) What kind of financing is
available?
Seller financing is usually the
cheapest and easiest to obtain. It
also tells the Buyer that the seller
has confidence in the practice.
There are no loan fees and the
interest rate is usually lower than
the bank rates, but the term of the
loan is often shorter. Seller notes
make up the majority of Buyer
financing. Banks will loan money on
businesses that show a strong
earnings history on the tax returns.
They require a lot of documentations
and the payment of upfront fees. In
recent years, bank loans, which are
guaranteed by the Small Business
Administration, have become very
popular and more readily available.
If all else fails, family or friends
will sometimes offer to help out.
They can either provide funds or
sign a guarantee for a bank loan.
5) How long does it take to sell
a dental practice?
It usually takes longer to sell a
business than a house or a
commercial building. Because of the
confidential nature of a business
sale, a dental practice broker cannot put a
For Sale sign on the window. The
average time to sell a Florida dental practice is
usually between six to eighteen
months. However, there are
exceptions. Some businesses may sell
within a month of being put on the
market. Others may take several
years to attract the right Buyer. A
business broker seeks out and talks
to Buyers everyday. The next one may
be just right for a particular
business.
12 Fatal Mistakes You Can Make
When Selling Your Practice
Many factors come into play that
affect the selling of a dental practice.
Though every business is unique,
whether in manufacturing, service,
distribution or retail, each shares
the same opportunities and the same
problems that must be evaluated
carefully when selling it.
Docfinder Brokerage Services believes that outsourcing
expertise in the selling of a
business is a wise investment.
Many entrepreneurs build a
successful business through vision,
excellent management skills and
sheer hard work. But most do not
have a thorough understanding of the
complexities and factors that are
present in the deal structuring and
business selling process.
Factors, such as:
- Maintaining confidentiality.
- Receiving the highest value
for your practice.
- Knowing how to project the
company's future.
- Maximizing its potential.
- Applying alternate deal
structuring must be considered
when selling.
This document presents 12 of the
most vital concerns that will have a
direct effect on the selling of your dental practice. The omission or even wrong
interpretation of just one can
greatly affect the value of the practice or future success of the
potential sale. Some of these must
be implemented immediately, such as
maintaining confidentiality of the
future sale, while others can be
addressed during the selling
process. You will find these 12
suggestions highly informative.
These are guidelines you will
need to know when selling your
practice to achieve a faster
transaction and the best possible
price.
1) Lack of deal structure
expertise
When the seller has limited
knowledge about the available
alternatives for structuring the
deal, he is at a definite
disadvantage! And probably a costly
one. Items such as leverage
buy-outs, leases, earn-outs, consulting agreements,
non-compete contracts can add
immeasurable value and security to
both buyer and seller alike.
2) Failure to adjust the net
owner benefit
If you are to determine a proper
value, the balance sheet and income
statements must be recast. Items
such as owner's salary,
depreciation, interest and fringe
benefits may be added or subtracted
depending on the circumstances. The
adjusted income statement will
reflect the actual owner benefit in
order to help determine the market
value.
3) Failure to maintain
confidentiality
Confidentiality is vital to the
selling of a business. If employees
know that you are selling and
changes are coming, they may seek
other opportunities. Competitors may
use this information as a selling
tool. Vendors may not continue to
extend favorable terms.
Profitability and market value may
be reduced.
4) Failure to secure qualified
buyers
Knowing how to qualify a buyer is
critical. Docfinder Brokerage Services pre-qualifies
each buyer to avoid a negotiation
that is doomed to fail. This saves
you time and money. It can eliminate
hundreds of wasted hours and
misdirected efforts.
5) Failure to continue to run
your practice
It is important to maintain your
practice at peak operating capacity.
The performance and productivity of
your business is what you are really
selling. The time taken from your
dental practice to sell it will have a toll
on the business and as a direct
result lower its market value.
6) Failure to properly adjust
for economic conditions and owner's
ability
Generally speaking, the higher
the skill level required to operate
the business, the more difficult it
will be to sell it. The value tends
to increase when the owner can be
replaced easily. The value also may
increase when an industry is in a
growth stage. For many industries
there are specific valuation methods
that are highly subject to the
owner's duties in the company as
well as outside economic conditions.
7) Failure to provide credible
information
A potential buyer will want
information about your customer
base, competition, financial history
and industry characteristics, such
as size, growth potential and areas
of opportunity. This information
must be provided in a salable format
and in a way to ensure your
confidentiality.
8) Poor negotiating techniques
In many deals, poor negotiating
techniques can cost the seller
considerably in terms of selling
price, terms and other
opportunities. Many times a deal
will fail to close because of poor
negotiation or communication between
parties.
9) Failure to place the proper
value on your practice
A dental practice has value to a buyer
because of its anticipated earnings
from its established resources and a
demonstrated successful track
record. Proper evaluation is
crucial, enhancing the chances of
selling your business.
10) Failure to consider
alternative investments
All buyers have alternative
investment options. To make your
practice attractive, you must show a
return on investment greater than
stocks, bonds, real estate or other
similar business opportunities. You
should be prepared to offer seller
financing.
11) Failure to prepare for
proper due diligence
Due diligence issues are very
important to the selling process.
These issues can have a major impact
on the closing of any business sale, including dental practices.
It is imperative to be prepared and
organized. You must be able to
defend and substantiate
representations made during the
selling process.
12) Failure to seek professional
assistance and consultation
There are legal, financial.
marketing and other vital
considerations that must be
addressed in the selling process.
Many decisions in the selling
process should not be made without
the advice of the right
professionals. A wrong decision
could lead to a fatal mistake!
These are just 12 areas of
concern. There are many more just as
important, depending on your
particular situation.
Some of these are:
- How to sell when partners
disagree.
- How to sell when a dental practice is marginal or close to
bankruptcy.
- What to do if the buyer
wants you to continue managing
the company.
- How to compile the necessary
paperwork to finalize the sale.
- You simply cannot afford to
sell your dental practice without the
necessary skills and selling
expertise. You run the risk of
not getting the full value for
your business. Worst yet, you
may turn off legitimate buyers
who may have purchased had your
practice been properly packaged
and represented.
- Almost all business owners
who sell on their own do not
receive the full value for their
businesses!
At Docfinder Brokerage Services, we have one
objective -- to get you the most for
your dental practice.
We believe in results. Now you
must take the next step!
By now we hope you are aware of
the potential economic gain and the
possibility of fatal errors when
selling your dental practice . Our main
objective is to ensure that every
client receives the maximum value
for his or her business. That is our
purpose.
Call the dental practice sale
specialists (561) 251-4338
What You Will Need To Sell Your
dental practice
There are certain criteria that
buyers have when acquiring a
practice. Most buyers approach the
purchase with a certain level of
skepticism. It is our job to
reassure them with solid facts and
believable information that your
business is a good investment.
1) Effective records
We assist you in preparing all
required documents and relevant
business listing information. We'll
guide you and support you in
presenting the information in the
best possible format.
2) Competitive price
You need to be attractively
priced to entice offers. The price
should not be too high or too low.
3) Leverage
You must be receptive to seller
financing. Most businesses are sold
with seller financing.
4) Equipment inventory.
You will need a complete list of
all assets. Furniture, vehicles,
fixtures and equipment should be in
working order and acceptable to a
buyer.
5) Lease
All buyers will want a good
lease. This must be pre-arranged so
there are no problems as the
transaction progresses.
6) Training
You must be prepared to train the
new owner and possibly some of the
new staff. This is customary and
almost always required.
7) Appearance
From the moment you place your
business for sale, you need to keep
it neat, clean and organized. Make
any necessary repairs prior to
showing.
8) Non-compete
You must be prepared to sign a
non-compete covenant or contract.
This provides the buyer some
peace-of-mind. Many buyers fear that
you will open up the same type of
business and become their
competition.
9) Response
Because time is of the essence,
it is crucial that you place
yourself in a position to respond to
an offer as quickly as possible.
10) No surprises
Surprises will make the buyers
uneasy. It is imperative that we
know everything about your business.
What may seem to you a trivial
matter could potentially become a
"deal killer" if not handled
properly.
