Most business purchasers will rely on a valuation formula to tell them the ballpark of what things should sell for. For some dentists, whose cognitive strengths and training up until that point have been scientific in nature, the desire to adhere to guidelines like a formula can be greater and more inflexible than for others.
If you are looking at buying a dental practice, it is likely that you will be asked to sign a Confidentiality Agreement or Non-Disclosure Agreement at some stage.
With pandemic restrictions easing, many businesses are starting to see their staff coming back into the office and our cities are starting to show clear signs of revival and recovery.
It is quite common for practice owners to be fearful of how the staff will react if they learn that their practice is for sale.
Over the years, Practice Sale Search has noticed a distinct difference in the levels of interest that buyers have in different socio-economic areas.
Last year, we had a practice for sale in a good suburban area of Brisbane. The principal dentist/vendor was in his mid-60s and had been practicing in the same spot for 30 years. The practice’s aesthetic was very functional but needed some reinvestment (both inside and out – let’s say $50k); it was in a great position on a busy street, surrounded by busy retail businesses. The principal was willing to contractually commit to working part time post sale and had a solid history of producing approx. $750k p.a., working 4 days per week (no extended hours), offering limited clinical choices with average fee levels, no website and $0 spent on advertising.
A practice or real estate sale is usually a high-stakes transaction involving hundreds of thousands, or millions, of dollars changing hands. Quite often, the buyer and seller will base the price paid for a practice on an appraisal or valuation that has been done by an accountant.