Attempting to sell your own dental practice after having developed, nurtured, and built it for years can be a daunting process. For that reason, many dentists turn to practice brokers in helping them transition towards retirement, relocation, and sale. So, what may be the best questions to ask a dental practice broker in order help you decide on who to select? And what should their answers be? Keep reading below:
Key Questions for Dental Practice Brokers
How many practice transitions have they conducted within the past 12 months? How many with proximity to your practice? Ask them for current transaction details and referrals from clients.
Ask the broker about their exclusivity regarding dental practice listings and sales? Effective dental practice Sale engage only in such arrangements. Make sure to work with one full-time broker as other types may not have access to many buyers or lending sources.
Ask them how long it takes to sell a dental practice?
Do they keep your information anonymous and confidential while marketing?
How do they decide on a price for your dental practice? There are several methods are used to identify a value on a practice by brokers. It is vital to understand the strengths and weaknesses of each method, and to be in agreement with the broker’s valuation approach. If this does not occur, the seller stands to lose time, money, or both.
What is the best method to increase the value of your practice before it is sold? Some brokers will recommend spending on paint, carpeting, and replacing old equipment. These are short term strategies, but depending on the circumstances, could prove effective and provide much assistance in achieving the goal of solid price and quick turnaround when selling your practice.
What fees does the particular broker charge? Brokers normally charge 9%-10% of the price paid on close of escrow.
The presence of any additional fees? It is important to note that your accountant and lawyers’ costs, along with any other expenses, will be told to you by your broker before or upon closing at the appropriate time.
How do brokers vet and market potential buyers? A good broker must have a range of buyers, exclusive of those not fitting into your criteria.
How strong are the broker ties with lenders in the practice sale industry?
What transition is expected after the sale of the dental practice?
How many years of experience does the broker have in selling dental practices – not business experience — REAL dental practice selling experience !
If you are considering placing your practice for sale, contact Lou Bermudez – as one of the founders of the dental practice sale industry with over 35 years of experience, Lou will get it done for your under YOUR specific terms!