If you're looking to sell your dental practice due to retirement, a career change or other reasons, you might best prepare yourself for the transaction by familiarizing yourself with dental practice sales key terms. You'll better understand the process of dental practice sales if you know what a valuation or appraisal is and why it's done, who dental brokers are, what a pricing model is and why purchase acquisition financing is important.

Action Steps
The best contacts and resources to help you get it done

Appraisal or valuation

The first step in dental practice sales is determining how much your dental practice is worth. This is called an appraisal or valuation. Factors such as the size of the practice, years in business, location, income and patient base are examined to arrive at an appraisal or valuation figure.

I recommend: ADS thoroughly explains the methodologies used to arrive at dental practice appraisals or valuations.

Transition

In dental practice sales, transition refers to transferring the practice from the seller to the buyer, or from one dentist to another. The transition involves legal aspects, documents, computer software, records, patients and staff.

I recommend: CTC-Associates gives a detailed breakdown of a dental practice transition, both pre- and post-transition.

Dental brokerage firms

Conducting dental practice sales on your own can be quite intimidating or overwhelming, so many dentists choose to get help from a dental brokerage firm. Dental brokerage firms specialize in dental practice sales and offer services such as transition consulting, appraisals, financing details and other areas of dental practice sales.

I recommend: Al Heaps & Associates explains the role of dental brokerage firms and lists the services you can expect to receive from a dental brokerage firm for both dental practice sales and transitions.

Pricing model

Some dental brokers might use a pricing model to help them gather information about your practice before you actually begin the sales process. A pricing model is based on information such as office location, size and financial status.

I recommend: California Practice Sales discusses the importance of a pricing model and includes a seller's questionnaire regarding a dental practice for sale.

Practice acquisition financing

Establishing practice acquisition financing is important in dental practice sales. Practice acquisition financing allows a buyer to purchase an existing dental practice based on the income of the practice and not on the buyer's financial status or income.

I recommend: ProMed Financial specializes in practice acquisition financing and provides a detailed explanation of how this program works.

Directory of Dental Practice Appraisers and Brokers

Even if you don't utilize the services of a dental brokerage firm to conduct every aspect of your dental practice sales, it's likely you will need a broker to at least appraise your practice. The Directory of Dental Practice Appraisers and Brokers lists all of the professionals who can appraise or valuate your dental practice.

I recommend: The American Dental Association (ADA) provides details about the Directory of Dental Practice Appraisers and Brokers and also has a link to the directory itself.

You now have your dentistry degree in hand and it's time to decide: do you open a new practice or buy a dentistry practice? There are many advantages to buying an existing dentistry practice: you'll have an established patient base and all your equipment and, possibly, your staff in place. In contrast, it could take years to get a new practice fully functioning and profitable.

Locating the right dentistry practice for you is one of the most important aspects of buying an existing practice. Size, location and value are the things you should look for. You might also consider sharing the costs of running a dental practice by entering into a partnership. When it comes to dental practice sales, consider the following:

1. Find dental practices for sale in the area you most desire.

2. Get a dental practice appraisal before making a purchase.

3. Determine how to manage the transition when taking over an existing practice.

Action Steps
The best contacts and resources to help you get it done

Location is key when it comes to buying a dentistry practice

Before size and even patient base, location is considered to be among the most important aspects of buying a dentistry practice. You can find a dentist office for sale anywhere from New York to California. No matter where you want to set up shop, decide between newer practices and older, more established offices in a marketable location.

I recommend: BusinessesforSale.com offers an extensive list of dental practices available for purchase throughout the United States. ProMed Financial, Inc. has a list of dental practices for sale, listed in convenient alphabetical order by state as well as giving a detailed description of what is included in the sale and whether the practice is a sole ownership or a partnership.

Get an accurate dental practice appraisal

You wouldn't buy a car without driving it around the block and probably even reading reviews about the performance of that particular type of vehicle. You should also get accurate dental practice valuations before you purchase a dental practice, preferably with the assistance of dental practice sales brokers. Know the costs, income potential and actual business generated by any practice before you buy.

I recommend: Assist to Practice conducts in-depth dental practice appraisals, covering everything from floor plans to patient-flow analysis. Practice Management Associates will assist you throughout the process of buying a dental practice, including offering a comprehensive appraisal of a practice you wish to purchase.

Make dental practice transitions as smooth as possible

Chances are, you might be overwhelmed when buying a dentistry practice. Let the professionals step in and help. Dental practice transition consultants can help guide you through the process of buying a dental practice and take some of the heat--and headache--off of you.

I recommend: CTC Associates has an hourly or flat fee charge to help make dental practice transitions go smoothly for the buyer, assisting with everything from evaluations to closing. New England Practice Transitions offers an affordable program that will help you with everything you need to transition into a new practice.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  The American Dental Association is a valuable tool when gathering information about buying a dental practice. Their website lists dental practices for sale as well as dental practice brokers in your area.

When you invest time in receiving quality dental practice sales education and training, it shows clients that you feel dedicated to the field. Education and training teach you about market trends and business strategies that you can use to help clients get the best deal possible.

Clients come to you to handle dental practice transitions, and it's in their best interest if you have a solid knowledge base in sales and in retail management. In order to educate yourself in these areas you might want to consider the following options:

1. Find out more about doing a dental practice appraisal by getting a degree in sales.

2. Learn about dental practice valuations as you take courses in retail management.

3. Get dental practice sales education and training by using your electronic resources.

Action Steps
The best contacts and resources to help you get it done

Learn about dental practice transitions by getting a degree in sales

Taking courses in sales gives you an inside look into the mechanics of selling and buying businesses for private or commercial use. This gives you a unique insight into dentist practice sales strategies and trends.

I recommend: Pondered.org offers a detailed summary of how a person benefits from getting a degree in sales. It lists schools and universities that offer this degree via online study opportunities. Get your associates degree by looking into schools that offer sales and marketing degrees. DegreeDirectory offers a list of schools that offer this degree both online and on-site.

Get an edge in the business by taking courses in retail management for dentistry practice sales

Educate yourself in retail management and network with dental practice sales brokers to find the best techniques for dental practice sales. Whether clients plan to sell or buy, dentistry practice education helps you discover the nuances of retail selling legalities so you offer clients optimal transactions.

I recommend: Education Portal not only recommends schools where one obtains a degree in retail management, but it also offers articles detailing ways this degree benefits students. It recommends schools that offer courses both online and on-site. World Wide Learn offers a listing of schools and universities where students get BA or BS degrees in retail management. It describes ways students use the degree and offers salary expectations.

Determine the best strategies for dentistry practice sales by learning from electronic resources

If you plan to buy or sell, dental practice sales education comes in handy, and electronic resources allow you to learn tips and techniques from the comfort of your home and around your work schedule.

I recommend: Dental Economics offers training CDs and webcasts on topics such as marketing and sales. It offers advice from practicing dentists on business strategies ranging from product sales to practice sales. Einstein Dental offers an online training webinar for students interested in learning about dentist practice sales. The webinar lasts for approximately one and a half hours and covers topics like patient conversion.