What's the Difference Between IPAA & IPA??

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WHO CAN YOU TRUST TO BE YOUR IDEAL PRACTICE ACQUISITION ADVISOR (IPAA)?

Who can you trust with one of the most important decisions of your life? You can bet a seller will be asking himself/herself the same question. So what if the seller’s advisor tells him/her something different from what your advisor tells you?

The ideal advisor is someone who can be trusted by both sides to be competent, fair, and objective. With that trust, both you and the seller can proceed in confidence toward their mutual goals. A good advisor will be aware of the needs and expectations of both parties and help manage them.  

Without an intermediary, differences and conflict can develop and cause friction between you and a seller.  Any friction that results can cause various problems post-sale including poor patient retention.

 
 
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YOUR IDEAL PRACTICE ACQUISITION ADVISOR SHOULD:

  • Be a credentialed dental practice advisor

  • Be experienced in dental practice transitions

  • Be a licensed real estate agent

  • Be competent in financial and legal matters and capable of coaching and interacting with the lawyers and accountants who likely will be involved

  • Better utilize the services of your attorney and/or accountant to minimize your professional expenses and ensure that the transaction really happens

  • Have resources available to assist you in realizing the potential of the practice

 
 

A TRUE PROFESSIONAL TRANSITION ADVISOR WILL ADD VALUE THOUGHOUT THE PROCESS.

  • Their expertise will ensure fair valuations.

  • They will assist each doctor in making difficult commitments, without falling to the temptation of structuring a lop-sided deal.

  • They will help keep pride, envy and greed from corrupting a good transaction.

  • They will save both doctors thousands on legal, tax, and financial issues otherwise spent by having their respective advisors research, evaluate and debate critical issues.

  • Their philosophy and values need to be compatible and complimentary to yours for the desired results to be achieved.

HOW MUCH WILL IT COST ME TO HIRE A PROFESSIONAL TRANSITION ADVISOR?

The real costs of purchasing a practice are incurred by those few dentists who insist on going it alone. It seems strange that in order to save a few thousand in fees, dentists end up losing hundreds of thousands of income in what could have been a very successful practice transition.

 Depending on the type of transition, most professional advisors will charge $7,500 to $15,000 which may or may not include any post-sale support.

 
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REFERRALS

Ask colleagues for names of good advisors that they have used. A good advisor will have a long list of references ready to give to you.

CHEMISTRY & RAPPORT

Speak with and meet the prospective advisor before hiring him or her. If you see the advisor as a person who will put your interests first, then great. But if you see him or her merely as a vendor or as a subordinate, you should reconsider pursuing a professional relationship. Sometimes an advisor’s viewpoints may differ from yours because your ideas are off base. Therefore, keep an open mind. A healthy level of self-awareness will prevent pride from overcoming good judgement.

DUE DILIGENCE

Make sure the advisor you are considering is legitimate. Confirm that the person is actually engaging in business activities that you would normally expect.

THE RIGHT FIT

It is the advisor’s job to make sure that his or her unique offering of knowledge, skills and services are a good fit for your objectives. The advisor should not assume that their services will meet your needs prior to an interview. The advisor should know and understand their own limitations and determine what can or cannot be delivered. Good advisors can be great resources for connecting you with others who have knowledge, skill, and ability in areas where you have a particular need. 

PROPOSAL

The advisor should provide you with an outline of work to be performed, milestone dates and when payment is due.

DEMEANOR & TONE

The advisor should look and act professionally. His or her language should be clear and articulate. A good advisor will want to hear what you have to say first before saying much themselves.  When they speak, evaluate if they seem more interested in selling you their services than in meeting your needs. Do they talk down to you?  Are they shallow and say all the right catch phrases or are their comments sincere?  How promptly do they return a phone call?

FEES & WORKING RELATIONSHIP

A good advisor is willing to structure a mutually acceptable agreement. Consulting fees vary dramatically and work is usually performed on a project basis. Share your expectations with the advisor, and ask if he or she will be flexible on items important to you.

Involving an outside advisor can result in many advantages such as the ability to provide objective advice, a neutral frame of reference and insight on what has worked well with other practices. While many advisors can be a great help to you, the wrong one can be disastrous.

 
Kaylan Thompson