To start the process of buying a practice, we need each prospective buyer to sign our Confidentiality Agreement so we can provide you with detailed information on practice listings. We recommend that the seller and buyer each seek independent representation.We recommend that the seller and buyer obtain independent representation as our firm will not represent both parties in a transition.
Process to Purchase a Practice
1. Sign the Confidentiality Agreement
The transition of a dental practice is highly confidential and requires each prospective buyer to sign a Confidentiality Agreement. By signing this Agreement, the prospective buyer agrees not to share or divulge any information provided by our firm or the seller with others. After signing this Agreement, we can share with you detailed information about available practice opportunities such as, an appraisal or valuation, tax returns, cash flow analysis, practice profile, demographic report as well as the Seller’s name and practice location.
2. Complete Buyer Profile
By completing the Buyer Profile, we can better understand your goals, expedite the process, and notify you when new opportunities become available.
3. Review the Practice Appraisal
After you have identified a listing on our website that seems promising, we can email to you the appraisal or valuation for that specific opportunity. Our thorough analysis will help you understand the overhead, future earnings potential based on historic data and the true return on investment of each opportunity.
4. Prequalify for Financing
Choosing a lender that specializes in dental practice acquisitions is an essential step. We can introduce you to lenders that can help you understand how much practice you can afford and that can expedite the loan process after an offer is accepted.
5. Meet the Seller
We will arrange for you to meet with the Seller at their practice after business hours. This will allow you to privately visit with the Seller and see the facility and equipment. During your visit, we encourage you to ask questions to better understand the practice systems and philosophy of the Seller. We request during your visit that you direct all questions regarding purchase price towards us so that the goodwill between you and the Seller is maintained.
6. Submit an Offer
Submitting an offer or Letter of Intent is the document that represents the Buyer and Seller’s intention to work together to close on the sale of the practice. The LOI provides the Buyer time to complete the due diligence process without concern that the Seller will sale the practice to another Buyer. The LOI outlines certain terms, such as sales price and the closing date. It also provides the Buyer contingencies to walk away from the sale if the Seller misrepresents a material fact or the Buyer cannot obtain financing or a lease agreement.
7. Complete Due Diligence
Although the Buyer will begin analyzing the practice before submitting an offer, the Buyer will continue and complete the due diligence after the offer is accepted to ensure that the information already provided by the Seller supports the sales price.