It is easy to exaggerate and be enthusiastic when coming across a dental practice for sale that matches all the boxes on your list. But without a pre-plan, it might become nothing. Therefore you should consider many things before putting an offer to a dentist in Berkeley, CA.
If you are serious enough to take the next step in owning your own dental practice, you have to consider who will be helping you and advising you with your purchase.
Things to do before placing an offer for a dental practice
Many considerations with a large and complex transaction are involved, and you need the right people to help you navigate from the beginning. Many people are surprised when they get to know how much collaborative work is required by the professionals in a dental practice purchase. These professionals are bankers, accountants, and of course, experienced dental lawyers.
Communicating with your professional advisers one at a time can lead to disjointed communication and, worst case, costly delays. For example, connecting your banking team with your lawyer may open the path for moving parts of the financial process; thus, everything will be in place at the time of purchase.
Getting your experienced professionals involved in dental practice transactions from the beginning will help you review appraisals, compare other sale listings, answer essential questions for sellers, and design a formal letter to purchase the winning practice.
Ask the right questions.
You have the opportunity to see the dental practice sales in the office and equipment in person in the form of an open house. With this opportunity, you will have to read the appraisal, know the practice metric, and prepare follow-up questions with your team.
- Why does the selling dentist want to sell?
With the aspects of the deal, the motivation behind a sale can change and may be more flexible. For instance, if the seller is going to retire soon, they may start at a long post-sale associateship. Sometimes, they may be willing to stay and help you ease into the new role as a practice owner.
- Does the selling dentist have multiple practices?
Even if the current opportunity does not pan out, presenting an informed and transparent offer could mean that the seller remembers you for another one of their practices.
If you are interested in buying more than one dental office, it will help set up more deals down the road.
