The first big, post-sale decision that buyers and sellers of a dental practice will need to make will revolve around patient disclosure. While no one wants to be dishonest with the patient base, there is a fear that, if the sale is communicated poorly, goodwill may not transfer effectively from seller to buyer, and patients may leave the practice. When faced with such dire consequences, some will prefer not to tell the patients anything about the transfer of ownership, and hope to manage the situation “on the fly” if patients ask.
It was fantastic to be interviewed for the latest edition of Australasian Dentist about our role facilitating the buying and selling of a dental practice. Click here to read the article
When you ask someone about the variables involved in establishing the value of a dental practice, they will usually list the quantity and quality of the equipment, the turnover, the profit, the location, the size of the patient-base and the demand for practices in the area. All of these factors (and more) are, of course, huge indicators of the expected price.
Most people would acknowledge that it is inappropriate for a judge to preside over a case involving a family member. If they did, their decision could be influenced by their personal relationship with the person involved in case, rather than the facts. Any ruling would not be deemed fair and just to those who sought judgement (and it probably wouldn’t be).
One of the greatest fears buyers of dental practices have is that they will pay significant money for goodwill and there will be a mass exodus of patients when they take over. To mitigate this risk, any buyer needs to seriously look at the reasons why a patient frequents the practice, and give them no reason to want to change their behaviour.
Great to see this great article in Bite magazine that we are quoted in