FAQ’s about Selling
Selling A Dental Practice FAQs
Over the years, Handon Brokers have worked with many dentists to facilitate successful practice transitions. If you're a dentist looking to sell a dental practice, take a look at some of our most frequently asked questions to see if yours is on the list. Don't see your question on the list or need more clarification? Get in touch with a local dental transition broker to learn more about how to sell a dental practice.
Q: What is a reasonable Covenant Not to Compete?
A: The area of the Covenant not to compete (non-compete clause) is different for each dental practice. The distance for the Covenant is usually correlated to the service area of the practice which is where most of the patients live and/or work.
Q: Are covenants (non-compete clauses) enforceable?
A: Yes, when they are written correctly. Consult with an experienced transition broker and/or legal professional to ensure your Covenant not to Compete is enforceable.
Q: Will my patients accept a new dentist?
A: Your patients will accept a new doctor if the introduction and transition are handled the right way. Your endorsement, coupled with staff acceptance and enthusiasm, is the key.
Q: Once my practice is listed, how long will it take to sell my practice?
A: The adage, "Location, location, location" has an impact on the sale of a dental practice. In a good area, the transaction can happen in as few as 6 weeks, ( with some corporate buyers) but in most cases 10-12 weeks after the valuation is completed. In a rural or an area with less demand, it could realistically take 3-9 months. The length of time on the market depends not only on the practice location but also on several other variables.
Q: When my practice is listed for sale, how will it be marketed?
A: We have an exclusive relationship with Dental data bases which share all our listings to registered buyers/sellers and through a robust internal data base.. Additionally, we will publish and distribute newsletters to dentists through their network.
Q: How do you value a practice?
A: We utilize four different methods which we weigh and average in order to determine fair market value. Learn more about dental practice valuations here.
Q: How can I increase the value of my practice?
A: If you're thinking about selling your dental practice in the future it can benefit your bottom line to make strategic investments in your business. An experienced dental broker can help to make recommendations that will add the highest value to your practice. Some basic improvements include cleaning up clutter, increasing your number of patients, and production.
Q: I have read that dental practices are valued in various ways?
A: While three years of financial information is important to determine the value of an office, rules of thumbs are simplistic and don't usually provide the correct value. To find out the true value of a dental practice is by presenting a term sheet or letter of offer. With the right financial information, a corporate can produce this in a relative matter of short time.
Q: What should I consider before hiring an associate?
A: When deciding if hiring an associate is the right move for your practice, there are many elements to consider. The higher your gross production and the more patients you have, the better candidate you become to hire an associate. If you're lacking patients, initially you'll be subsidising the associate and your personal income will likely suffer. Ultimately, every dental practice is different
