Why would any dentist practicing in Arizona consider putting his or her practice on sale? Has the individual suddenly realized he or she needs to move to greener pastures or perhaps retire from the business altogether? In most cases, it is because the dentist concerned is looking forward to having a good life after establishing the practice and making it a success by working hard and investing in staff and infrastructure.
Dentists looking forward to selling a practice usually have gross revenue of over $ 500,000 every year netting them a revenue of approximately $ 150,000 or 30% of the gross revenue. They have also made a huge investment in infrastructure, staff, but are still attempting to move out of the business by putting their dental office for sale for new investors in the market.
Selling a dental practice is not the same as offering a newly launched toothpaste in a grocery. Dentists need to find an investor that is willing to spend a huge sum of money to purchase the dental practice for a price that needs to be calculated by experts. The dental practice must be appraised by evaluators to understand whether the seller has valued the dental office for sale appropriately or not.
Many dentists looking to sell their dental practices often overvalue or undervalue when attempting to sell the business by themselves. The selling dentists are trying to be penny wise and pound foolish without realizing that they are delaying the sale and in many cases causing losses of hundreds of thousands of dollars. Rather than indulging in such practices dentists will be better off if they contact dental business consultants that are willing to offer a free price evaluation to ensure the dentist gets a fan estimate of the value of his or her dental practice. Dentists that have used the services of dental business consultants have in some cases realized a greater value for their practice than expected but some have also been disappointed because of the lower value they received.
As mentioned earlier selling a dental practice is not the same as selling goods in a grocery. The sellers need to find buyers that are willing to invest a sum of money into the dental practice which could be in the region of nearly half $ 1 million. Any investor being demanded the type of investment will certainly want to have the background of the practice being sold, the type of revenue it has been generating, the number of years it has been operating and a number of things. The sellers by themselves would in many cases only have decided on a price that could either be too high or too low without considering the other factors leading the investors to back off.
Things will not be similar if dentists trying to sell their practice hired the services of experienced dental business consultants have been working on the market for over five decades and have transitioned many dental practices over the years. They can guarantee that the sellers will get the best price while making the transition when a stressfree manner.
Dental business consultants are fully aware of the many complications involved in the sale and purchase of a dental practice apart from having the know-how of the financial requirements as well as the involvement of financiers or bankers who will want to look at every statement made by the seller to the buyer. These matters are better handled by a consultant who has adequate knowledge of dealing with the financial aspects of the business.
Consultants also have to consider that the dentist selling a practice is probably doing so for financial gain and the one purchasing it is also expecting to benefit from established practice. It is the job of the consultant to offer the best services to both parties while making one feel that he or she couldn’t have done better and the others believe this was a deal of a lifetime. The job of the consultant begins with the dentist selling a practice contacting them for advice but does not end even after the dental office for sale changes hands from the seller to the buyer. The consultant must ensure the transition is made smoothly by creating a plan that will also help the purchaser increase the value of the dental practice by offering the expertise and experience they have gained to make strategic investments in a dental office to increase its value.
Sellers and buyers of dental practices should initially consider searching for a dental practice broker that can make it easy for them to find what they are looking for. They can research for AFTCO Southwest that is the largest dental practice transition consulting network in the United States as it can become easier for all parties to conclude a sale faster at the best prices.