Table of Contents
Over the years, ADS brokers have assisted numerous dentists in successfully transitioning their practices. If you’re a dentist considering selling your dental practice, this article provides answers to some of the most commonly asked questions. If you don’t find your question on the list or need further clarification, don’t hesitate to get in touch with a dental practice broker near you to learn more about the process.
What is a Covenant Not to Compete?
A Covenant Not to Compete, also known as a non-compete agreement, is an agreement where parties commit to not competing with each other for a specified period of time. The area covered by the Covenant varies for each dental practice and is typically correlated to the practice’s service area, where most of the patients live and work.
Are Covenants Not to Compete enforceable?
Yes, when they are written correctly. It is essential to consult with an experienced transition broker and/or legal professional to ensure your Covenant Not to Compete is enforceable.
Will my patients accept a new dentist?
Your patients are likely to accept a new dentist if the introduction and transition are handled in the right way. Your endorsement, along with staff acceptance and enthusiasm, plays a key role in facilitating the acceptance of a new dentist among your patients.
How long does it take to sell my dental practice?
The time it takes to sell a dental practice varies depending on its location. In popular areas, selling a dental practice can take about 6-12 weeks after the completion of a practice valuation. However, in less-demanding areas like rural regions, it could realistically take anywhere from 2-5 years. The duration of time on the market depends not only on the practice’s location but also on several other variables.
How will my dental practice be marketed when I list it for sale?
Marketing a dental practice listing with ADS Dental Transitions is one of the easiest ways to ensure you find a qualified buyer. In addition to listing your dental practice for sale on our website, we publish dental practice listings and distribute newsletters to a large and well-connected network of prospective buyers.
How is the value of a dental practice determined?
We consider four valuation methods to determine the fair market value of your dental practice. As experienced dental brokers, we weigh the results of these different methods. It is crucial to have a broker with a history in your specific geographic area to accurately determine the value of your practice. Learn more about dental practice valuations here.
How can I increase the value of my dental practice?
If you’re thinking about selling your dental practice in the future, making strategic investments in your business can benefit your bottom line. An experienced dental broker can provide recommendations that will add the highest value to your practice. Simple improvements such as decluttering, increasing the number of patients, and enhancing production can make a significant difference.
What is a dental practice worth?
While three years of financial information are important in determining the value of a dental office, relying solely on rules of thumb is simplistic and often inaccurate. A common belief is that dental practices are worth 70% of their gross receipts averaged over the past three years. However, to find out the true value of a dental office, it is crucial to consult with an expert in transitions who can conduct a comprehensive evaluation or full valuation of the practice.
Will my patients accept a new dentist if I sell my dental practice?
During the process of transitioning to a new dentist, there is always the possibility of losing some patients. However, clear communication of the transition plan and introduction to current patients can greatly increase the chances of patient acceptance. Your endorsement, coupled with staff acceptance and enthusiasm, can play a key role in maintaining your patient list throughout the transition.
Should I carry a note when I sell my dental practice?
Agreeing to carry a note in the sale of a dental practice is an option that allows a buyer to finance the purchase. In most cases, it is possible for the buyer to secure 100% financing, ensuring you receive payment in cash at closing. Learn more about dental practice financing here.
Should I hire a dental associate?
Whether or not to hire a dental associate depends on several factors specific to your practice. The higher your gross production and the more patients you have, the more viable it becomes to hire an associate. However, if you’re lacking patients, you may end up subsidizing the associate, which could negatively impact your personal income. Ultimately, the decision to hire an associate should be made on a case-by-case basis, taking into consideration the unique circumstances of your dental practice.
How do I get in touch with an ADS broker in my area?
To find a local ADS broker, click here. Our expert brokers are ready to assist you through the process of selling your dental practice.
What is ADS? Can any dental practice consultant join?
To learn more about ADS, click here.