When buying or selling a dental practice, laying the groundwork for a smooth transition is crucial. The post-closing process hinges on the negotiation of terms from the outset and the seller's familiarity with the buyer. Here are key steps to streamline the practice transition:

  1. It’s All About the Team. A well-assembled team is crucial for a smooth transaction, safeguarding against potential legal issues and facilitating a seamless transition. The seller's team typically includes an attorney, an accountant, a dental broker, accountant and a financial planner. In addition to these professionals, the buyer's team should also incorporate an accountant, financial planner and accountant, as well as an insurance agent and a consultant.
  2. Disclosing to Your Employees. When it comes to informing your employees about the impending sale, different practices may apply. In some cases, it may be necessary to disclose the news to everyone involved well in advance, while for others, it may be more prudent to wait until closer to the closing date. Naturally, your employees will be concerned about their pay, benefits, and job security under new ownership. It is important to negotiate with the buyer to determine the best approach for managing the team you've built during the transition.
  3. Embrace Electronic Records. It can be difficult to sell and transition a practice with paper records. We have clients with stacks of records in storage and disposing of them comes with burdensome statutory and privacy considerations to them and the buyer. Electronic records make for a smoother transition.
  4. How’s the Real Estate Part of the Deal? Determine whether you intend to sell your practice real estate, if you own your office location, or if you'll need to renew your lease before the sale. Understanding the fair market value of any property involved in the transaction as well as the terms of your lease is crucial. The decisions made regarding these factors will significantly influence the practice sale and transition.
  5. Get to Know Your Buyer. Allocate some leisurely, social time with the buyer to assess if they are the ideal fit for the practice you've cultivated. The better acquainted you are with the buyer, the clearer it becomes whether the transition period will be smooth or challenging. This insight enables you to determine whether to proceed with the sale or await a more suitable buyer.