Selling Your Practice to a Dental Service Organization (DSO)?
Why You Need a Broker.
After putting years of hard work and investments into building a dental practice, it’s easy to assume that your practice will sell quickly and easily when you are ready to move on. However, this process is more complicated and stressful than most people anticipate, which is why it’s essential to hire a broker to help with Dental Service Organization (DSO) negotiations.
What You Need to Know about Dental Service Organizations (DSOs)
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This is likely your first time selling a dental practice, which means you don’t have previous experience to help you navigate the process. On the other hand, a Dental Service Organization deals with practice transactions on a daily basis.
If you are selling to a DSO, you need to know that the organization has an advantage since they are experts in acquiring practices. You need someone who can advocate for your needs: a broker who understands the process from start to finish.
Benefits of Hiring a Broker
Here are just a few of the reasons why it’s an excellent investment to hire a broker to assist with your upcoming dental practice sale:
- Lock in the Best Price: A broker understands the market value and can negotiate a fair price for the sale of your business. Most DSOs are aggressive in getting a deal, but they don’t always offer a reasonable price for the practice. Working with a broker can maximize your investment so you get the highest possible sales price – more than you could have negotiated by yourself.
- Take Advantage of the Competition: Brokers can leverage competition by inviting multiple DSOs to bid. When several organizations are competing for your dental practice, the bidding war drives up the price and maximizes your results.
- Choose the Best Buyer: It’s hard to let go of your practice because of the years of work you put into building the business. However, a broker can assist by ensuring that your office is moving into good hands – a DSO that will care for your patients and be a good fit for the community.
- Navigate the Sales Process: Selling a dental practice takes time. In some cases, dental offices need months or even a year to complete the sales process from start to finish. In addition to finding a buyer, your broker can also help you make other steps in the sales process, such as negotiating the price, finalizing the transition, and handling contract paperwork.
- Start to Finish Services: Rest assured, knowing that your broker is always a phone call away from start-to-finish. You need to meet specific milestones along the way, and your broker will guide the process to optimize your overall results.
A DIY approach for selling a dental practice will result in subpar profits and a stressful experience in most situations. The simplest and most effective solution is to work with an experienced broker for assistance. For more information, our team at JRA is just a phone call away. Contact us today to see how we can assist.