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.
It was great to be interviewed by Dental Head Start about how to find and succeed in your first practice. We spoke about the common pitfalls that buyers and new owners can find themselves in and how to avoid them.
When a practice owner is looking to sell their practice, they will often put off telling their staff about the sale for as long as possible. There are many reasons for this. Sometimes (often) they won’t want to tell the staff at all until after a deal has been locked in with a buyer.
Once a dentist has decided that they want to be their own boss and own a dental practice, the next question that they face is “should I buy an existing practice or set one up from scratch?”