All general marketing and communications concerning the practice will be kept confidential. All potential buyers must sign a confidentiality agreement before getting specific information about the practice they are interested in.
Selling and purchasing a dental practice is a complex transaction involving many different parties. Even after the buyer and seller agree to the price, lawyers, accountants and the banks all have input and need to review the transaction. Practices in areas that are in high demand could see the practice sold within six or eight months. We have found the average practice transaction to take nine to eighteen months with some as long as two years in remote locations.
Yes – you should have your own at the time of closing. It is always good to have your attorney review the documents. However, it is important to let them know that the term and price negotiations have been agreed to.
There is no need to contact your attorney until you get closer to the closing. You should know that Peak’s attorney, who drafts the closing documents, can answer many of your legal questions as we go through the process.
NOTE: you do have the option to utilize Peak’s attorney as part of our service. He is available by phone and email for all your legal questions, just let us know if you’d like us to introduce you to him.
Peak will initially screen candidates for license issues immediately and credit worthiness at the appropriate time. We also ask candidates to run a report from the National Practitioner Data Bank (NPDB). The NPDB is a web-based repository of reports containing information on medical malpractice payments and certain adverse actions related to health care practitioners, providers, and suppliers. Additional references are expected as the offer is made.
Typically, the most common buyer is a doctor/dentist who has been an associate for 3-7 years and is looking to purchase their first practice. There may also be entrepreneurial dentists with several practices and associates at one or more offices looking to expand their reach. Additionally, there may also be group practices that are looking to add to their group of offices or to their patient base.
Peak will carefully screen all interested parties as well as have candidates complete the Detailed Buyer Profile. You will review the Profile and discuss the candidate’s qualifications with your Peak consultant before speaking with any candidate. If you do not feel the practice is right for the candidate, Peak will make the call to the candidate and inform them of your decision. Our goal is to minimize your time in meetings to only qualified candidates and avoid a “parade? of buyers.
No – All contacts to the seller will be made initially through Peak. If a buyer calls you directly, please refer them to Peak for any information requests they may have. Do not jeopardize a potential sale by agreeing to terms or requests directly. The seller and buyer can agree to exchange contact information to expedite meetings and calls after the initial meetings have taken place.
Ultimately the seller either accepts, rejects or counters the offer. If the offer is accepted, the buyer will work to obtain financing and conduct due diligence, a formal in depth review of the practice. A closing date is set after final approval for financing and the due diligence process is completed. The legal documents are prepared and reviewed by both parties’ attorneys. The final stages of the transition such as financing, document preparation and legal review often take four to six weeks.
Buyers understand that the team in place is as important as the patients and physical office. Buyers may add staff if there are openings, but we strongly recommend they do not make big changes with the practice staff for the first year.
We recommend that patients be notified with a personalized letter after the closing has taken place. The seller can deal with specific questions from patients on a case-by-case basis, but no broad announcements should be made until after the closing occurs. Peak will assist you with the letters to patients and communication scripts for staff.
In today’s banking market, it is not common for the seller to provide assistance with financing of the practice purchase. Most major banks that understand healthcare practice transitions will provide 90–100% financing for the purchase of the practice as well as additional working capital funds. Our goal is for you NOT to carry a note unless absolutely necessary. However, a note is likely if your building is involved, as banks usually only lend 80% of the appraised value and most of the first time buyers will not have the cash to execute both timely.
Depending on the financing arrangements, due diligence process and legal preparation, most transitions close within twelve weeks after the offer is accepted.
Depending on the buyers choice of consultation with Peak, we will offer/provide management support for the initial 90-120 days to insure the buyer’s success and to relieve you of that responsibility. Our process sets the new owner up with the greatest potential for success.