Unlock the Path to Practice Ownership: Thinking About Buying?
Congratulations on the idea of buying a dental practice. We are truly happy for you. As practicing dentists you’d know that dental practice transitions are a daunting task. Whether selling or buying a practice, spending your time, money, and precious efforts on a brand-new office should be rewarding. Well, whether you are all set to buy now or are just surfing to find a dental practice, our transition advisors are happy to help you.
At Magnus Practice Transitions, is not as difficult as it used to be. As expert advisors & dental practice brokers, we do the groundwork, research, and manage work, so that you can spend time with your patients and professional growth. We have worked hard for years to get the right team in place that’s ready to support you.
We will walk you through the entire ‘buying section’ of the practice sales process:
STEP #1 Search Listings
Once you sign up with us, we offer complete access to our listings. Browse the listings, save and mark your favorites, and request us for more info on those. Remember to choose practices that suit your needs. For instance, what do you want, solo practice, partnership practice, group practice, associateship, or specialist practice? Evaluate the location, patient base, competition, growth potential, and more when skimming the listings.
STEP #2 Sign Our NDA
You may choose a few of the best-suited dental practices for sale from the listings. However, before we disclose more information about those and discuss them further, we expect you to sign an NDA (Non-Disclosure Agreement) with us. We will maintain the confidentiality of sensitive information provided by the seller during the purchasing process.
STEP #3 Review Documents
Once we receive the duly signed copies of the NDA (Non-Disclosure Agreement) & the buyer’s acknowledgment document, we allow you to visit each listing’s unique profiles of the practices of sellers. At this point, we disclose limited information for instance only some financial statements. We always have our expert transition advisors to help you evaluate the seller’s Appraisal—the dental practice appraisal is a practice valuation document containing the market value of the dental practice based on various factors.
You get to see photos of the clinic study the legacy of the practice and do the background work.
STEP #4 Request Site Visit
We also inform the broker looking into the section of the purchase of a dental practice. You are guided for a visit and through a broker, only if need be and on request.
STEP #5 Make An Offer
Once you have decided to purchase a dental practice and move further; we, Dental Practice Transitions experts can help you draft an offer to the seller, and draft a cover letter. This is the Letter of Intent (LOI). After the signature of the Letter of Intent by both parties, the transaction will proceed into a due diligence phase. The seller should be happy that he is selling his practice to someone who is trustworthy with his patients and caring. Should there be a need that the seller wants to meet you, we can arrange that. Our experts keep you posted about if they accept or counter.
STEP #6 Offer Acceptance: Agreement of Purchase and Sale/ Agreement.
Once an offer is accepted, both parties sign an Agreement of Purchase and Sale, which outlines the terms and conditions of the transaction. This binding contract includes details such as the purchase price, closing date, and any contingencies. The agreement ensures both the buyer and seller are legally committed to completing the sale under the agreed-upon terms.
STEP #7 Due Diligence
To avoid misunderstandings, we’ll always document A-Z of the agreed-upon terms in a document titled “Heads of Terms” after negotiating the contract. After both sides agree, the buyer will do legal, clinical, and financial due diligence. This is the thorough analysis of finances, patient demographics, patient count, Patient Procedure codes and market worth that prepares the groundwork for the sales. The buyer is making his own study to validate everything. Buyer can discuss with his advisors, lawyers, accountants, and us. Establishing clear payment structures, financing choices, and transition plans is critical.
The requested records such as financial statements, due diligence documents, patient lists, and lease agreements, collection reports, and any other relevant documents are compiled to help the buyer thoroughly perform due diligence.
Step #8 Assignment Of Lease: Assignment of the lease to a buyer from the landlord: Seller’s lawyer & Buyer’s lawyer
At this stage, the buyer and seller are working together to close the deal. This is when the seller transfers their lease agreement to the buyer, allowing the buyer to take over the rental space from the landlord. Both the seller’s and buyer’s lawyers handle the paperwork and ensure the transfer is legally binding.
STEP #9 Close & Transition
Okay, now that the due diligence period is over, we are ready to close the deal and start the transition process! Voila! The deal is finalized. All transactions are complete and signed. In the transition phase, the seller will stay in touch with the buyer to set him up in the clinic.
A good idea is to have open dialogues during the transition, right? Best practices are regular check-ins, a well-facilitate & smooth handoff of tasks. What you need to do now, is find out about how the clinic runs—procedures and systems, respect all the staff skills, and more. Best is to put patient care first. Convey changes transparently and empathetically while gelling with the team.
Conclusion
The idea to buy a dental practice of your choice that also meets your professional dream, is easy now. Wondering how? The transition advisors at Magnus Practice Transitions are all set to streamline, advise and lead your through the process with a handheld approach. Isn’t it amazing if you stay in touch & have a good relationship with our support team, the listing broker, and the seller, to make the process more streamlined and efficient?
If you wish to buy a dental practice, why not reach out to us. The process of purchasing a dental practice is easy and enjoyable with us.
