Resources to leverage if this path is on the horizon
For most dentists, there comes a time when they are looking to sell their practice, whether it’s to transition into retirement or even re-locate to chase a new professional goal. In our recent blog, NDP’s Partner and Valuation Specialist Christy Ratcliff encouraged both buyers and sellers on how to find success in building partnerships in today’s volatile environment.
But what about those who are ready to sell outright? How can they know they are making the right decision to sell—and more importantly, can ensure they get the right buyer and the right price for their life’s work?
“A transition is a transaction, but really it is so much more than that,” Christy emphasizes. “A transition for a seller can be an emotional process—you are selling your life’s work—which is why having the right team in place to look at pieces objectively is a critical component to a successful transition. Understanding the soft elements of the business is important to help you meet your personal and professional goals, so that life after sale is what you want it to be.”
In 2019, NDP worked with approximately 100 buyers and sellers as they transitioned into and out of practice ownership. While every transition is unique, NDP’s average listing client received 94% of their asking price.
They have two primary services for doctors considering transitioning out of ownership:
- Listing Service – NDP will market your practice on a confidential basis to locate a suitable buyer candidate and then screen and vet those candidates to find the “right one.” This all-inclusive service includes negotiating the terms of the sale and facilitating critical processes like lending and legal.
- Seller Consulting Services – If you already have a buyer and are looking to sell a portion or 100%, NDP can assist in putting together a fair and reasonable transition plan that works to meet your goals. This customized service is based on your individual needs but often includes an in-depth financial analysis to set the price and help you and your buyer understand the cash flows and opportunity, negotiate the transition terms and facilitate the critical processes.
Even in times of turmoil, transition plans do not have to be put on hold.
“The current market brings unique challenges, but it is absolutely possible to find buyers right now,” Christy said. “People in the industry are still moving forward with their career goals and persevering in spite of the pandemic.”
Transitioning your practice is a major decision and it’s important to be educated and start thinking through the process early. NDP’s Seller Transition Guide is a good place to start as it breaks down the process step by step and answers some of the common questions doctors struggle with during the selling process.
Other Seller Resources:
- E-Book: Seller Transition Guide
- Podcast: Transition Talk, Episode 9 & 10
- Podcast: Accumulating Wealth, Season 6, Episode 2
- Event: Practice Transition Seminar, October 16 & 17