The Practice Buyer's Corner - Random Musings from the Buy-Side
The Practice Buyer's Corner - Random Musings from the Buy-Side
The purpose of this blog is to share current, real world, experiences on the topics of practice valuation, practice transition, retirement planning, and building equity value - over time - in your dental practice.
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seanepp
seanepp

Is Summer's End really already here? (also dental transitions)

8/24/2013 8:46:33 PM   |   Comments: 0   |   Views: 50187
Apparently not here in the Twin Cities...stepping into record high temps this week...ugh!

Not sure what is in the water here in 2013 but we've encountered innumerable transition scenarios presenting challenges as it relates to existing, established associates. 

Common themes include, but are not limited to:
  • No existing contract between practice owner and associate
  • Lapsed contract between practice owner and associate
  • Outright hostilities between practice owner and associate
  • Associate trying to leverage practice owner into below-market-value sales prices
  • Disparity in embedded valuation processes between seller's and buyer's representatives
We're big fans of the mentality behind "handshake" deals but those are increasingly proving to be horribly problematic unicorns these days. 

The primary asset being conveyed in any dental practice sale is the patient base and practice owners need to protect themselves accordingly - i.e. explicitly defined (and executed) restrictive covenants, non-compete periods, and non-solicitation periods for staff members (employees). 

For many practice owners these "business" topics may be uncommon, uncomfortable, or unsavory to discuss but the impact they can have on the sale of your business can prove to be shockingly profound. 

No surprise, but honest, direct, and EARLY questions on any transition discussions can prove to save all parties a lot of time, effort, cost, and heartburn...not to mention the avoidance of otherwise good/professional relationships.

Be well,

Sean
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