If you already own dental practice, you already know that the number of dental patients has been increasing. Government records show that more than 127 million adults visited a dentist in 2017. And the number could have probably increased in the last two years. This increase in the number of customers presents an opportunity for you to cash out by selling a dental practice. You can also expand your operations by buying a dental practice in another city.
Whether you want to buy and sell a dental practice, you must adhere to specific guidelines to avoid making losses. A dental broker can guide you on how to sell your dental practice and may also play a vital role when you want to buy a dental practice in Chicago. However, before consulting dental practice brokers, there are some few things you need to understand.
Value of a Dental Practice
It is hard to buy and sell a dental practice without understanding its market value. Therefore, before any form of negotiation can take place, you need to have dental practice appraisal so that you can understand the risks and income associated with a particular dental practice. High income and low risks translate to higher dental practice value. However, you should make sure that an appraisal of more than three years is conducted to give a reliable dental practice value.
Shifts in Practice Value
Another important factor is understanding the factors that may increase or decrease the value of a dental practice. If a dental practice is located in a city with a high population of senior citizens, there is a huge chance that the value will increase as more seniors will require dental attention. However, a dental practice located in an old town is likely to decrease in value as people are moving to other cities. You need to evaluate shifts in dental practice value as they will help you to buy and sell a dental practice.
It would be difficult for you to buy and sell a dental practice if you don’t understand the transition process of a dental practice. You should know the specific contents of the dental practice transition such as offer, acceptance, and price. Transition process governs and highlights how the transfer of the practice will be carried out. It highlights the intention to buy a business and the amount of money you are willing to pay for a particular dental practice.
When you want to buy and sell a dental practice, you must be prepared to enter into legally binding contracts. One of the main covenants is the restrictive covenant, which restricts you, as the seller, to start another dental practice within a specific geographic region. When you sell your dental practice in Chicago, you must refrain from soliciting staff or patients from the region, failure to which you will contravene the restrictive covenant agreement.
Legal and Financial Advisors
For the whole process of buying and selling a dental practice to work, it must be guided by legal and financial experts. You might be an entrepreneur and have the necessary funds, but you have no clue about legal and financial practices. Therefore, you need to involve advisors who will guide you at every step of the way.
The continuity of the practice is an important factor that you will need to understand. If you are acquiring a dental practice, you need to have an agreement with the landlord so that you can continue to enjoy the goodwill of the real estate. Besides, you must come up with strategic plans that will keep and motivate your employees while at the same time retaining customers.
Many entrepreneurs have previously been involved in the process of acquiring and selling a dental practice without prior knowledge. Trends show that very few of them have succeeded. To avoid being another victim, you need to have dental practice brokers and transition experts who will guide you on the entire dental practice buying and selling process.