We regularly get dental practice buyers and sellers telling us that their accountant had advised them what a practice is worth. While I am sure that their accountant is good, competent and trying to be helpful… very few accountants have the experience with dental practice financials and access to comparable dental practice sale results to make that call.
Practice owners often misunderstand corporate deal terms. We have written this article to provide some clarity about “earn-outs”. What they are, how they are used, why they exist and when they are used.
As experienced dental practice brokers in Australia, my team and I are always amazed at the misconceptions that some dentists have about the process of selling a practice. In this article, we thought we would address some of the more common seller misconceptions that we hear:
During World War II, Japanese aviator pilots (called “Kamikaze” pilots) were known to have been sent on missions with no fuel in the tank reserved for the return journey. They were infamous for exhausting all of their resources on route to, and sacrificing themselves in collision with their target.
Buyers have limited time and patience when it comes to exploring practice opportunities for sale. They swipe through opportunities like people scroll through Netflix — and if your story doesn’t catch their eye in the first few seconds, you’re passed over.
