Buyers and sellers of dental practices come from different worlds. Sometimes they’ve gone to the same dental schools, learned the same basic procedures, and earned the same degree. But often, they’ve grown up in different generations and are at opposite ends of the career journey.
Sellers of strong practices have integrated many complex pieces over extended periods and through multiple economic cycles. They’ve invested in advanced clinical skills while mastering the psychology of anxious patients. At the same time, they’ve hired and managed staff, set budgets, built operational systems, run marketing campaigns, and remained relevant with multiple generations.
When done well, there’s a compelling case for a potential buyer. And a seller may look at their practice’s reputation, new patient flow, and net income and see a slam dunk. They may automatically think, “Who wouldn’t want to buy this practice?”
Sometimes it’s not that simple.
An active buyer is usually eager to start their ownership journey, but they’re also working through many details under the surface. For example, while net income will be a primary driver of the value placed on a practice, a seller may add different metrics to their evaluation.
They may be thinking about starting a family and wondering about the quality of the local schools. Is the community the right fit, and how many after-school options will their kids enjoy? What housing options are available, and can they afford a nice home and practice debt? What will their commute look like, and how will that affect their family life and free time?
The seller can’t answer many of these personal questions, but they’re part of a package that may influence a potential buyer. Everyone has a different vision of what they want from their ownership experience, and the pieces may fit differently depending on various financial, family, and lifestyle factors.
What Can Dental Practice Sellers Do?
Sellers who understand the complex factors considered by a buyer can offer insights that no one else can. Offering to share what they love about their practice is a solid starting point, but sellers are also ambassadors for their community and overall career journey.
New owners face uncertainties about the steps ahead in a new area; a seasoned owner can share their insights and tips. For example, they could talk about the schools if they served on the school board. If there’s an annual music festival, they can share about the artists who’ve come through. Also, a particular CE series that helped grow the practice can be shared. Of course, not every business relationship lends itself to this, but it can be vital to young dentists committing to a new area, likely for many years.
What Can Dental Practice Buyers Do?
A practice buyer should consider everything important to them in the ownership experience. For instance, a high-volume, thriving practice in a busy suburb may be the right fit. Others may want the lifestyle of a slower-paced, rural practice in areas that offer homes with acreage. It’s valuable to weigh the pros and cons of every opportunity and discuss them with trusted friends and families.
But buyers should take advantage of those who’ve gone before and learn details about the opportunity. Get curious, and buy into the adage that there aren’t any stupid questions. Sellers face a life-changing decision and deserve to look at it from every angle.
What Can A Dental Practice Transition Specialist Do?
Dental brokers work on behalf of the seller, but their mission should always be to match buyers and sellers for win-win relationships. That’s why working with dental transition experts who know your market is vital. National brokers often focus on the transaction more than the transition and don’t always understand the nuances of specific areas.
At DDSmatch, we’re more than a resource to sell a practice; we’re regional specialists focused on bringing the right people together for successful outcomes. Of course, we want our sellers to enjoy their hard-earned exit from practice ownership. But we also want buyers to discover the rewards of practice ownership from start to finish. Understanding each other’s perspectives, goals, and concerns helps create transitions that leave only winners.
If you’re a buyer, we can help you understand today’s market and opportunities. But first, we listen, answer questions, and help you analyze practices that match your vision. Due diligence is vital to long-term success.
If you’re a seller, we help you consider your options in a changing world and search for buyers who value your practice, patients, and teams. In addition, we look for buyers that understand the opportunity and want to take it to the next level. Transitioning to a dental practice involves many complex moving parts and we can guide you through the process.
Make 2023 the year you take the next step in your career journey. Reach out and start the conversation today.
