Real Estate, ITS AN EMOTIONAL DECISION
Don’t overlook your real estate when selling your practice. The location and look and feel of your office is a vital part of your practice success. You may be in an office building and a lot of new young dentists want a storefront location. You may want to lease the condo you own but the new young buyer may want to buy your space for the same reason you did years ago. The lease or the ownership position you maintain can greatly affect the viability and value of your office. Banks require long term leases to finance transitions and buyers want to have a “market” lease. If the buyer buys the building he is only going to pay market value. As a Practice owner if you own the real estate will you have capital gains implications if you sell the building? If you assign the lease agreement are you still legally on the hook in the event of a default? Some practice brokers will claim they can help with the leasing or sale of the real estate in addition to the sale of the business. Be careful here. Practice brokers are not licensed real late brokers and should not be engaged in the real estate business legally. Moreover they do not have the requisite experience or knowledge to handle your real estate situation. I have seen practice brokers try to juggle values of real estate and offices to “make the deal”. The problem is that the business and real estate are valued different by the bank. The practice is based on gross revenues or EBITA but the real estate is valued on comps and CAP rates. So “mixing” the two is often a recipe for disaster at the goal line of the deal. We recommend a transition expert to sell the business and a real estate expert to sell or lease the real estate.
These are just a few questions you need to be aware of when getting ready to sell your practice.
For a complimentary assessment of your individual situation call Charles Feitel at 301.365.6940 or email me at firstname.lastname@example.org
Is the middle of a pandemic a good time to market your dental or medical practice for sale?
The short answer is ….. maybe.
- If you are a mature dentist or doctor are you concerned about being exposed to the virus?
- How much longer were you going to work in your plans pre-pandemic?
- Has your staffing been under control or has it been stressful?
- What has your office performance been since re-opening?
- In theory, the virus may have pushed values downward but interest rates for buying dentists are at an all time low!
- Are you willing to work in the “new normal”?
If you are struggling to answer any of these questions or have definitively answered some of them, then it may be time to take action! Whether it be retirement, expansion, or shrinking your practice there is always a solution to help get you what you desire. If you are interested in selling your practice then learning the proper steps to take prior to jumping ship is something you may want to do. Especially during these uncertain times with Covid-19 still at our doorstep.
For a free consultation to see if NOW is a good time, call HPRG, THE Medical and Dental Transitions Group!
Our unique sales approach makes us the wise choice for selling your practice. 24 years experience is what it takes to insure you have the most successful transition experience.
Call Charles Feitel at 301.365.6940 or email him at email@example.com
Visit www.hprgrealty.com to see our current available listings