- They Are Marketing Specialists
Working with a trusted industry specialist such as OMNI Practice Group gives sellers access to a wider array of market options. Because the company’s staff has significant experience in the marketplace, they know how to quickly locate qualified buyers and to promote the seller’s practice in high visibility markets.
- They’re Experts in Business Transitions
The specialists at OMNI Practice Group have many years of experience in business transitions. They’ve helped hundreds of sellers to achieve their ideal objectives through the selling of their dental practice. This means they can guide sellers throughout the entire process, from finding qualified buyers to completing negotiations and due diligence alongside the buyer’s legal team.
- Frees Up the Business Owner’s Time
The work of Omni Practice Group helps to support business owners in running their organization throughout the negotiations. They won’t have to take time away from their business to review the marketplace or to deal directly with buyer negotiations. They can leave all the work to the team at OMNI Practice Group. This also means that they can retain the value of their company throughout the transaction, helping to support the on-going growth of the company and meet the needs of their patients while OMNI Practice Group responds to all transition requirements.
- They can Prepare the Business for Sale
Because of OMNI Practice Group’s experience in the marketplace, they know what it takes to prepare a company for sale. They can pinpoint structural issues within a business and help the seller to eliminate these structural issues before the sale begins. They can also highlight the elements the buyer will be analyzing during their due diligence, and complete processes areas such as the completing of all equipment paperwork to ensure every part of the transaction is in place before the sale begins.
- They Seamlessly Close Business Transactions
The length of time a business transaction takes to complete can have a significant impact on a business owner and their finances. The team at OMNI Practice Group works to reduce the sales timeframe and streamline the closing process. They ensure each element of the sale is completed according to the seller’s timeframe, and help reduce closing costs to ensure optimal value for the business.
Specialists for the sale of dental practice businesses, OMNI Practice Group is committed to working with sellers across the marketplace in finding qualified buyers for their practice. To learn more on the company and their services, contact their office team today at 877.866.6053 or visit our online form.
1. High overhead – even though it can be corrected, this is something dental practice buyers often don’t have the vision or knowledge on how to correct. Even in high producing practices, if the overhead is too high, the buyers freak out.
2. No way to increase the practice production or income. If you are doing everything from root canals to orthodontics, you may be maxing out the practice. I’m not saying it’s impossible to find the right dental practice buyer, but if you’re doing all of the procedures, it can be a bit more challenging.
3. Old practice from equipment to the shag green carpet and the orange laminate counters. If it’s been 30 years since you have updated anything in the practice, don’t expect a premium price.
4. Remote practice – A practice in a small town 3 hours from any major city is harder to sell than a practice in a desirable area. Give yourselves 2 years to sell dental practices in remote areas.
5. Relatives working in the practice. It’s okay to have a wife or child as an employee. But if you have a wife, sister, daughter and son working in the practice and two of them will be leaving upon the close of the sale, you will have problems selling the dental practice.
These are some of the things to look at as you get closer to retirement, or just want to transition out of your dental practice.
Selling a chair or even charts is easy. It’s just an object that you are giving to another doctor to own. But, I’ve had many doctors who realize their life will be different going forward after their transition. They may have staff they have worked with for 25 years or more. They have seen patients grow from being a child to being a parent and some even become grandparents. Now their children and grandchildren are patients of the office. You have vendors and your CPA that you have gotten to know personally and confide in. Staff, patients and the vendors have all become family and you will not be seeing them as often as you have in the past.
You will also be changing your life in that you no longer are the owner, manager and decision maker with people relying on you to lead them. You may no longer have to wake up and go to work every day. Believe it or not, you may even have “spare” time and have to find new hobbies, rekindle old ones or maybe even find take care of the honey-do list.
The good, if not great news, is that the staff, patients and vendors are thankful for the years of service you have provided them in addition to your friendship. They want you to enjoy life and spend time with your real family – spouse, your parents, kids, and grandkids. Preparing for this emotional aspect of your dental practice sale will help make your practice transition into retired life a much smoother process.
As part of the due diligence process, the buying doctor should schedule a face-to-face meeting with the selling doctor well in advance of closing. We typically recommend this meeting be held at the seller’s office after operating hours, with the practice broker attending if possible. The initial meeting is designed to allow both parties get to know one another, ask any questions they may have regarding the practice or each other, discuss practice philosophies, etc. During this meeting, the parties may also exchange contact information so they can reach out to each other directly to discuss any remaining questions or concerns leading up to closing (while also keeping the practice broker in the loop).
The buyer typically learns a great deal about the seller and practice during this interaction and leaves the meeting knowing if the opportunity is the right fit for them. Once the buyer and seller have met and established a personal connection, we also find that negotiations are more amicable and the closing process goes much smoother.
With a fee-for-service and/or personality-driven practice (where most of the patients are coming to the practice specifically because of the seller’s personality), we have found that a second meeting between the buyer and seller in a more casual setting such as lunch, dinner, or happy hour can allow the parties to loosen up and gain additional insight into each other’s personalities, interests, practice philosophies, etc. It is important to mention that we suggest the parties steer clear of discussing pricing, allocations, or any other negotiable items during any of these meetings.
Throughout the closing process, the buyer should clearly communicate his or her expectations of the seller leading up to and following the sale and the seller should notify the buyer if he or she is unwilling or unable to fulfill these obligations. Regardless of the seller’s post-closing plans or obligations, the selling doctor should plan to serve as a resource to the buyer following the sale and be available for phone consultation to answer questions and offer advice.
By effectively communicating throughout the transition process, the buyer and seller will have established a solid foundation for a smooth and successful dental practice transition.
-Rod Johnston, MBA. CMA