Dental Practice Selling Process

1. Compile Limited Valuation

• Establish fair market value and set sales price.

2. Formulate Transition Plan

• Identify timeframe, goals, and expectations of the Seller.
• Determine preferred transition strategy, e.g., walk-away sale, deferred buy-out, etc.

3. Sign Listing Agreement

• Formalize the relationship between Seller and Watson Brown that allows our firm to list the practice for sale.

4. Prepare Valuation Package for Prospective Buyers

• Package valuation, tax returns, and reports typically requested by buyers.

5. Attract and Qualify Prospective Buyers

• Advertise practice listing via email, websites, social media, networking, and print ads. 
• Require prospective buyers to sign our firm’s confidentiality agreement.
• Qualify prospective buyers, e.g., citizenship status, Seller’s criteria, personal finances. 

6. Meet with Prospective Buyers

• Buyer and Seller meet after hours in the practice to engage in a one-on-one conversation. This is not an opportunity to negotiate terms, but to share practice philosophy.

7. Execute Letter of Intent (LOI)

• Buyer submits an offer that outlines the primary points of the practice sale and transition. Upon acceptance of terms, both parties sign the letter of intent.

8. Prepare for Closing

• Buyer completes due diligence, finalizes bank financing, and enters into a lease assignment or works toward purchasing the real estate.
• Draft purchase agreement and other closing documents. 

9. Review and Sign Closing Documents

• Buyer and Seller sign documents prior to closing.

10. Closing & Funding

• Calculate final patient credit balances and accounts receivable. 
• Buyer wires funds to appropriate individual and/or entity. Ownership occurs upon receipt of wired funds.

To achieve the best outcome, Watson Brown expects the following from our clients:

Timely Responses & Availability

• Answer emails, texts, or phone calls from our firm regarding requests for data and on-site visits.

Trust & Transparency

• Notify our firm before making substantial changes to the practice, e.g., hiring or firing staff, purchasing equipment, renewing your lease.
• Avoid any actions that would negatively affect your collections, such as referring out procedures, reducing advertising or networking, extended vacations, etc.

Proactive Involvement

• Provide timely responses and feedback to maintain momentum. 
• Review contracts, prospective buyer information, and monthly buyer activity reports.
• Make time for on-site visits with prospective buyers.

Likewise, here is what our clients can expect from us:

Timely Responses & Availability

• Our goal is to close sales quickly and efficiently while maintaining best practices to ensure a smooth and successful transition. Our typical office hours are 9am-5pm, Monday through Friday. However, we can arrange for after-hours calls as needed.

Transparency

• Our team will provide timely updates in the form of monthly buyer activity reports, confirmation of received documents, feedback from buyers, and various milestones as we work through the sales process.

Trust & Expert Council

• Our expertise includes brokers and licensed attorneys with an accounting and tax background. Our approach to each practice transition is unique and customized to meet the client’s goals.
• As your fiduciary, we act in your best interest to sell your practice. Our goal is to sell your practice for top dollar, while limiting tax liabilities and ensuring your continued happiness years after the transition. 
• Following the practice sale, our firm remains available to ensure the transition goes smoothly and to answer questions.