Practice Sales

When beginning the process of selling a dental practice, it’s imperative to work with specialists who have experience in selling dental practices. Experienced transaction brokers can help dental practice owners streamline the sale and achieve their ideal return on investment. The team at OMNI Practice Group are specialists in this industry, and in their latest article they highlight five benefits of selling a dental practice through their services.

1. 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 promote the seller’s practice in high visibility markets.

2. 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.

3. Frees Up the Business Owner’s Time

The work of Omni Practice Group helps to support business owners in running their organizations 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 ongoing growth of the company and meet the needs of their patients while OMNI Practice Group responds to all transition requirements.

4. 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.

5. 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 timeframe of the sale 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 about the company and its services, contact their office team today at 877.866.6053.

When beginning the process of selling a Veterinary practice, it’s imperative to work with specialists who have experience in selling Veterinary practices. Experienced transaction brokers can help Veterinary practice owners streamline the sale and achieve their ideal return on investment. The team at OMNI Veterinary Practice Group are specialists in this industry, and in their latest article they highlight five benefits of selling a veterinary practice through their services.

1. They Are Marketing Specialists

Working with a trusted industry specialist such as OMNI Veterinary 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.

1. They’re Experts in Business Transitions

The specialists at OMNI Veterinary 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 Veterinary 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.

1. Frees Up the Business Owner’s Time

The work of Omni Veterinary 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 Veterinary 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.

1. They can Prepare the Business for Sale

Because of OMNI’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 completion of all equipment paperwork to ensure every part of the transaction is in place before the sale begins.

1. 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 works to reduce the timeframe of the sale 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 Veterinary practice businesses, OMNI 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.

Whether you have owned your veterinary practice for 40 years, or owned it for 5 years, selling your  practice does not mean you are done practicing.  We often meet with doctors who are sick and tired of managing their staff, doing the bookkeeping, playing the games with the government agencies, dealing with the ups and downs of the economy, changing environment of the profession and on and on.  The doctors are about to crack, but think they cannot yet sell their practice as, according to their CPA or financial advisor, are not yet financially ready to retire.  We counter this by asking them “who said you need to retire?”  You can “harvest your equity” and either work back in the practice, or go work for another practice.  What the CPA’s and financial advisors may not see is that your veterianry practice collections numbers are going down.  Or, your blood pressure is sky rocketing due to the above mentioned challenges of managing your practice to the point of a heart attack coming right around the corner.  If you have a good amount of equity in your practice, we can sell your practice and you can put the cash in the bank and work as an employee until you are ready to retire in 5, 10, 20 years, or as long as your heart desires.  Transitioning out of your practice may be the way to enjoy your profession again.

Selling a dental practice is a complicated process.  Don’t go at it alone.

Selling a dental practice is a complicated process that involves numerous steps including determining the market value of your practice, finding the right buyer, negotiating the purchase price, purchase agreement and lease assignment, and facilitating the transition of ownership (just to name a few).  Employing the services of a trusted professional can make a tremendous difference in the success of your transition.  Here are the top 5 reasons to hire a practice broker when selling a dental practice:

1. To formulate a transition strategy to meet your individual needs
Not all practices and all doctors are the same.  A good dental practice broker will listen to your specific needs and goals to develop an individually tailored transition strategy that fits your situation.  There are many ways to structure a practice transition, including a walk away sale, associate to purchase, phased sale, and partnership arrangement.  When selling a dental practice, choosing the right transition strategy for you and your practice is the first step towards a successful transition.

2. To confidentially market your practice to find a buyer who is the right fit 
Utilizing the services of a practice broker will provide you with the opportunity to market your practice to a broader range of potential buyers, thereby increasing the likelihood of finding a doctor who is an ideal fit for your office as well as shortening the time frame required to complete the sale.  The broker will oversee all communication with potential buyers and their advisers, which can take a significant amount of time and effort.  Delegating this responsibility to a seasoned professional will allow you to focus on the operation of your practice and enjoy your personal time rather than spinning your wheels talking to countless potential buyers.  To protect the value of your practice during the marketing process, the broker should require each potential buyer to complete a confidentiality agreement prior to receiving any information regarding your practice and show your office only after business hours.

3. To maximize the value you receive for your practice
Your dental practice is one of your most valuable assets and the proceeds of the sale will likely be used to fund a significant portion of your retirement.  Therefore, it’s crucial that you maximize the value of your office at the time of sale.  Determining the market value of your practice, articulating the practice value to potential buyers and their advisers, and maximizing the price you receive at closing are key responsibilities of a practice broker.  Practice brokers are typically paid a commission based upon a percentage of the practice sales price.  It is in their best interest to get you the highest possible price for your practice.

4. To represent your best interest during the transition process
A dental practice broker’s goal should be to structure a win-win transaction for both parties. Rather than trying to force a square peg into a round hole, they work to ensure that the needs of the buyer are met through the opportunity that the seller is presenting. The broker also serves as a buffer between the buyer and seller to preserve the goodwill of the practice and relationship between the parties during negotiations.

5. To provide a structured closing process to ensure a smooth and timely transition of ownership
Navigating the closing process is often the most tedious and stressful part of selling a dental practice.  Once you have identified a buyer for the practice, there are numerous steps involved in completing the sale, including negotiating the practice purchase price, letter of intent, asset purchase agreement, assigning the lease, securing practice financing, announcing the sale to the staff and patients, etc.  A dental practice broker will walk you through each step of the closing process to ensure a smooth and timely transition of ownership.

These are just a few of the reasons to employ the services of an experienced practice transition consultant when selling a dental practice.  Planning in advance and building a strong team of advisers will ensure that your practice transition is a success.

-Rod Johnston, MBA. CMA

Most business owners are so busy running the day-to-day operations of their business that they do not give ample consideration to a future sale of their business. Before selling a business, there are many factors to address and adequate preparation can maximize the return to the owner.

In a perfect world, the best time to sell a business is when the business is performing well with future projections looking even better, the national economy is strong and the industry is getting a lot of attention from Wall Street investors. However, regardless of the state of the economy or the industry, there are certain things owners can do to make their business sellable and as attractive as possible to potential purchasers.

To build market value, address the following items:

• Standardize and document all company procedures
• Eliminate liabilities or liens and resolve any outstanding litigation
• Investigate transferability of leases and sales & supplier contracts
• Perform maintenance on company equipment to ensure good operating condition
• Secure key employees with employment contracts
• Eliminate non-performing or non-contributing employees from the payroll
• Establish a management team that can operate without the current owner
• Reduce reliance on one or two large customers for the majority of sales
• Spruce up the physical aspects of the business facility
• Have clean, verifiable financial statements for the past three years

To improve cash flow, take the following action:

• Reduce unnecessary inventory
• Collect any outstanding receivables
• Re-negotiate favorable key supply contracts
• Reduce personal adjustments on Income Statements
• Ensure financial controls are established

Owners should be aware that there is an inherent conflict that arises with running a business and preparing it for sale. Many businesses are run with the objective to minimize tax liabilities. Unfortunately, the same techniques and accounting practices that minimize taxes also minimize the value of a business. Ideally, plans to sell a business should be made three to five years in advance of the anticipated sale. This will allow adequate time to make changes and demonstrate a track record of maximum profits.

In addition to setting a future target date to sell their business, a business owner should ask themselves what they want to get out of the sale of their business. Do they just want to finance their retirement? Is it important that their son or daughter remains with the business? Can they gain tax benefits by financing part of the sales price? Do they want to ensure the new owner will treat their customers with the same level of service? Make a list of priorities and seek the advice of business professionals to ensure there are no surprises during the process of selling a business.

Once a decision has been made to sell a business, the owner should be conscious of the need for confidentiality. Any leaks about the sale of a business can cause panic and fear for the employees, suppliers, landlords, and banks. Great care must also be taken to assure that competitors and customers do not learn of the planned business sale. Competitors may sabotage a business by leaking information to employees and customers. Key employees may start looking for other employment. Customers could be concerned about how the business will perform under new management and may seek alternative sources for the product or service. If any one of these were to happen, the value of a business could be significantly decreased. Working with an experienced Merger and Acquisition Advisor or Business Intermediary can minimize the risk. The name of the business and any detailed information should be disclosed only after it is determined that a potential buyer has the skills, experiences, financial capability, and leadership required to run the business being considered. In addition, all potential buyers should be required to sign non-disclosure agreements stating they will maintain confidentiality on all of the disclosed information.

By now it should be clear that early planning of the sale of a business will generate the most value and will likely expedite the sale of a business. To summarize, focus on building market value and improving cash flow, carefully plan the terms of the sale of the business, seek the help of business professionals and maintain confidentiality.