When approaching a practice transition, an orthodontist should initially be aware of the fact that such a transaction can be time consuming. As a practice owner, it is important to understand the basic steps in a transaction. Orthodontists should take time to interview as many potential buyers as possible and conduct a thorough background check on each potential buyer.
Practice owners should never let an associate or buyer simply enter the practice based on a handshake. Instead, it is crucial that the orthodontist seeks the advice of legal and financial professionals who specialize in dental practice transitions.
Financial professionals can increase the sales price by ensuring that the practice is properly valued, and an attorney experienced in practice transitions is invaluable in ensuring that the practice owner’s interests in the transaction are adequately protected. Again, the practice owner should understand that the process of a practice transition takes time, and that negotiation will be involved.
In order to have a successful dental practice transition, several steps will be necessary. First, an appraiser will need to establish a comprehensive valuation of the orthodontic practice. The orthodontist will need to prepare the practice for transition by using the initial valuation as a tool to make changes that will increase the profitability of the practice.
Additionally, if the practice owner will be retiring after the transition, he or she will need to seek financial advice on retirement planning. Perhaps investing could be a good idea for those looking to do so, so you know this way you’ll be financially secure and have that financial independence when you reach that time. Looking at online sources such as this ‘investing 101 guide’ will be of great help for some no matter your current occupation. Next, the practice owner or practice broker will need to locate a new associate or buyer, depending on the nature of the practice transition. Then, the practice owner will need to get updated valuation information and have an attorney prepare any legal agreements involved in the sale of the practice. Finally, the practice owner will need to ensure that the buyer or new associate feels welcome and assist them in transitioning successfully into the practice.
Stuart J. Oberman, Esq.
Stuart J. Oberman is the founder and President of Oberman Law Firm. Mr. Oberman graduated from Urbana University and received his law degree from John Marshall Law School. Mr. Oberman has been practicing law for over 28 years, and before going into private practice, Mr. Oberman was in-house counsel for a Fortune 500 Company.
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