5 MORE Reasons Why FSBO is a No Go
“For Sale By Owner” - Part 2
FSBO stands for “For Sale By Owner”. On the surface, FSBO seems to make sense as a reasonable way for dental practice owners to eventually sell their practices.
But as we shared in this article, there are at least five reasons to reconsider including “Can-do” attitudes, Credentialing, Confidentiality, Contacts, and Commissions. There are five more reasons that need to be surfaced too.
Five more reasons to reconsider:
1. Associate buy-ins:
Some associate buy-ins succeed, but the vast majority fail. It is usually a result of insufficient income for the associates. Practice owners need to be ready to relinquish $12,000 of net income per month in order to bring in an associate. Secondly, owners do not want to commit to buyers when they don’t know if they will be satisfied with them and vice versa. Lastly, experienced associates generally want to purchase, not serve as associates.
2. Intermediary:
Practice buyers don’t want sellers to hate them. When there are differences between what buyers want and what sellers want in practice transition terms and conditions, it works well to have a certified business intermediary manage those differences so that the buyer and seller can stay on good terms. Otherwise, once sellers get a bad attitude, goodwill goes down and practice value goes down.
3. Legacy:
The sale of a practice owner’s business is one of the most significant milestones in a dentist’s career. Both emotionally and financially, for most sellers, it’s a big deal. Why would any practice owner want to leave their legacy to chance?
4. Insult:
If you are a FSBO dental practice seller, get ready to be offended. You can expect practice buyers to tell you what is wrong with your practice in order to leverage a lower purchase price. Never mind that the practice is your baby, you thought things were fine and now you are being politely insulted.
5. Negotiation:
Qualified brokers are trained negotiators. They know how to overcome buyer objections. Qualified brokers know when and how to use leverage to get the best price with the best buyer fit for practices that they represent. On the other hand, well meaning practice owners can unintentionally sabotage their own deals.
Forgo the FSBO
We get it – on the surface, For Sale By Owner seems to make sense. But hopefully this sheds some light on why it isn’t a wise move.
Selling a dental practice is completely different than treating patients. Why not trust a licensed and credentialed expert in practice transitions to assist you with one of the biggest events in your life?
Schedule a no-pressure call today.