Although time consuming, the process for buying a dental practice does not have to be frustrating. We suggest all buyers looking to purchase their practice read the recommended tips below.
Process to Purchase a Practice
1. Sign the Confidentiality Agreement
2. Complete Buyer Profile
3. Review the Practice Appraisal
4. Prequalify for Financing
5. Meet the Seller
6. Submit an Offer
7. Complete Due Diligence
1. Sign the Confidentiality Agreement Before we can share detailed information with you about available practice opportunities we require a potential buyer to sign a Confidentiality Agreement. The information we provide is highly confidential and may include an appraisal or valuation, tax returns, cash flow analysis, demographic report, practice profile as well as the Seller’s name and information about their practice.
2. Complete Buyer Profile The Buyer Profile helps us to better understand what drives you, helps to speed up the process, and notifies you when there are new opportunities. Through answering a series of questions we are able to put together a completed Buyer Profile and give it as a way of introducing you the Seller.
3. Review the Practice Appraisal The Buyer Profile helps us to better understand what drives you, helps to speed up the process, and notifies you when there are new opportunities. Through answering a series of questions we are able to put together a completed Buyer Profile and give it as a way of introducing you the Seller.
4. Prequalify for Financing For many, prequalifying for financing is the first step in purchasing their new practice. By prequalifying with one of our preferred lenders that specialize in dental practice acquisitions you will understand how much of a practice you can afford, understand the advantage when the time comes to make an offer, and speed up the loan process after an offer is agreed upon.
5. Meet the Seller We organize a time for you to meet with the Seller’s practice before or after business hours. During the visit you will be able to meet with the Doctor privately, tour the facility, look at the equipment, and ask the Seller questions to better understand the practice. We ask that you direct all of your questions about pricing towards us as to maintain the goodwill between you and the Seller.
6. Submit an Offer The Letter of Intent (LOI) is the foundation of an agreement between the Buyer and Seller that outlines specific business and contractual terms. This document is given by the Buyer to formally submit an offer to purchase the practice.Typically the LOI states that the Purchaser has the appropriate time to obtain financing and lock-down an office lease. Although not binding in its entirety, the LOI is binding when it relates to the confidentiality provision and handling of earnest money.
7. Complete Due Diligence The Buyer will continue and complete the due diligence after the offer is accepted. This ensures that the information provided by the Seller accurately supports the sales price.
We’re excited for you as you take steps towards purchasing your future practice. Start the process with us by taking a look at the Confidentiality Agreement. Click here to sign the Confidentiality Agreement.