Dental Office Space Sales Requirements
It’s time to start thinking about transitioning to the next phase of your life. It’s been a good run but now let’s consider other life options to pursue. Buyers have some similar things they like to see but every case is different. When attempting a sale of your dental office and/or practice making sure you keep solid records over the years will greatly help with the speed and trust or the sale.
At a bare minimum, you will need to have the following readily available:
- Last three years tax returns and current year to date profit and loss statement
- Number of active patients and new monthly patient growth
- Payor mix if insurance based practice
- Current AR
- Employment contracts ( if you have them)
- Procedures done in office
- Patient calendar schedules
- Building lease
This represents the bare minimum information you need to have. After the buyer signs an NDA this basic information can be shared. After the buyer visits the office, they will determine if they want to see additional materials. Every buyer wants to see different information and depending on the buyer certain information is more or less important. Be flexible as a seller and willing to accommodate their requirements. Keep in mind that you have more experience then them and may not see the need for what they want to see.
“Go with the flow” and cooperate so you can get your office sold at the highest price. Your broker will supervise the process and accommodate the buyer. After the basic information has been shared it is in the buyer’s court. I recommend you require a basic letter of intent before you share information over and above the basics. Have the buyer submit the LOI and spend money with an attorney to get them “vested” in the deal. If the terms are close , agree and have their lawyer submit a PSA ( Purchase and sale agreement). Now you can safely spend money with your attorney.
In sum, the sale of a business is a process. Obviously both parties will need to be flexible, but if you adhere to some basic steps, the process will progress in a smoother fashion. To learn more contact Charles Feitel at HPRG Transitions for a “free consultation”. 301.365 .6940 or firstname.lastname@example.org. www.hprgrealty.com