Practice Owner FAQ
Q. Should I consider selling my practice on my own?
A. Most practice owners have good clinical skills, but don’t have the resources or experience to sell their own practices. A qualified broker can provide the insulation needed when a deal is being negotiated. Deals that fall apart are often a result of FSBO attempts.
Q. Why should a practice broker be a real estate broker?
A. According to Ohio Revised Code 4735, individuals who represent others in real estate transactions must be licensed to do so. Since most practice sales involve the lease or sale of the dental office itself, it is important that your broker be licensed. Bob Brooks, owner of Practice Endeavors, is the only dental practice broker in Ohio who is also a licensed real estate broker.
Q. How do I find the right buyer?
A. Most practice owners have good clinical skills, but don’t have the resources or experience to sell their own practices. A qualified broker can provide the insulation needed when a deal is being negotiated. Deals that fall apart are often a result of FSBO attempts.
Associate FAQ
Q. What is the best way for me to own my own practice?
A. Most associate dentists prefer to purchase practices rather than start-up new practices. If you’ve done some research, you know that it is very difficult to find good practices to purchase in areas that you might prefer. While some practitioners who have not received satisfactory assistance in placing new start-ups have struggled, properly located new start-ups have performed well.
Q. Where is the best place to practice?
A. If you have an interest in owning a practice in a saturated market, your best bet is to purchase a practice. A saturated market would be where the population to practitioner ratio in a given area is 1,400:1 or less. Practitioners who are flexible to practice outside metropolitan areas can do well with both practice purchases and properly located new practice start-ups.
Q. Should I go about finding a practice on my own or recruit help?
A. Practitioners who have adopted a “go-it-alone” philosophy toward practice ownership often become frustrated in their attempts. And if they do move forward on their own, they may end up locked into really bad situations for a long time. It is unsettling that national practice brokerages require buyers to sign paperwork requiring their brokerages to represent buyers as dual agents. Many people consider dual representation to be unethical. With real estate, poorly trained and inadequately supervised real estate agents representing out of state based brokerages may lead new start-ups practitioners in the wrong direction. Some CPAs, attorneys and dental supply company representatives try to do everything from acting as practice brokers to giving advice on new start-up locations.
Your best bet is to work with licensed and certified advisors who are specialists in what you need.