We could just say “YES” but that probably isn’t enough information to be convincing.
The sale of a dental practice is a significant milestone in the life of both the Seller and the Buyer. In most cases, the Seller has never sold a dental practice and the Buyer has never purchased a dental practice.
The Seller remembers all the blood, sweat and tears that went into starting and building a successful practice and attaches an “emotional” value to his or her “lifework.”
The Buyer knows nothing of the emotional value of the practice and is trying to understand all of the facts and figures connected with the practice and is usually being guided by advisors who primarily see their job as getting the very “best” price for their client.
In this situation, a major danger is making the transaction “adversarial.”
We do not think it is possible for a Broker to adequately represent both sides. But we firmly believe that an experienced Broker is a valuable intermediary between the parties.
The Broker can help the Seller to understand that the “emotional” value of the practice may be greater than the “market” value. By showing the Seller information about the sale price of “comparable” prices, the Seller can be made to realize that the Buyer is not trying to take advantage of him or her.
Likewise, the Broker can help the Buyer understand how the practice was valued and why the value is consistent with prices paid for comparable practices in the area.
Accountants and attorneys who do not have significant experience in dental practice sales and valuations will not have a comprehensive local knowledge of practice values. And many do not have an appreciation of the need to preserve Goodwill.
The other major role of the Broker is to keep the process moving. The Broker can coordinate the activities and input from the accountants, the financial institutions, the attorneys, the equipment appraisers, and any other specialists involved in the transaction.
The Broker will know which financial institutions are making practice acquisition loans, who to contact and what information they will need about the Seller’s practice.
Brokers are uniquely qualified to manage the process and move the parties to the end of the process. Without a Broker “managing” the process, no one else is really able to keep things moving and everybody coordinated.
As a result, the whole process gets strung out and can lead to withdrawal of one party or the other. Or, the goodwill between the parties can be damaged to the extent that the practice will not be as valuable to the Buyer as it should have been.
Whether you are a Buyer or a Seller, we can help you and we would be happy to meet with you to discuss how we can help.