There are many considerations when preparing to sell your dental practice, not the least of which is emotional attachment. There are many steps and people that can make this huge life change much easier.
Things to consider while selling a dental practice.
Identify Your Goal:
You should speak to an accountant and a solicitor prior to agreeing a sale of your practice. You need to know how much your practice is worth and you need to know what to agree with the potential buyer if for example you are behind with your UDAs, remedial notices have been served on you or your lease is due to expire shortly.
Conduct a Practice Valuation
You will need to think about your future plans – what are you proposing to do once you sell the practice? Do you still want to practice dentistry? Are you relocating? The sale and purchase agreement will restrict your activities post completion.
Know what your practice is worth today and how to maintain its value until you are ready to sell. Then you can
determine a listing price (get input from your broker if using one).
For many doctors, their dental practice is one of their most valuable assets and the proceeds from the sale of their office will be utilized to fund a significant portion of their retirement. The Buyer must prepare the financing request
(loan package), unless it’s an all cash deal, discuss the transaction with finance vendors, and secure the financing commitment.
Prepare for the due diligence
As the Pre-Contract stage draws to a close, parties may consider the signing of Head of Terms – a simple document setting out the intention of the parties in relation to the transaction. This is usually drafted by a Business Agent but a solicitor can be used to ensure that fundamental conditions are set out and elements of the document are legally
Expense share arrangements
Check the provisions with regard to the sale of your share.
Your existing staff
We recommend you do not tell your staff you are selling until you exchange contracts with your buyer.