Expertise in Determining a Fair Market Value
We offer a free business appraisal regardless of whether you decide to do
business with us. We have access to a proprietary database of “sold”
businesses throughout the United States. This database tells us what other similar size businesses are selling for. We use this database along with various other sources to help determine what your company’s Fair Market Value (FMV) is and a fair offering price for your business or practice.
Prepare Financial Comparison and Cash Flow
With the data that you provide from your financial statements and tax returns we put together a three-year income statement comparison of your practice along with a cash flow statement that becomes part of the Offering Memorandum for your practice. We also use this to help determine your FMV.
Prepare Offering Memorandum
With information you provide about your practice, we put together an Offering Memorandum which is a document that tells a prospective buyer some particular information about your practice that will be helpful to him in determining whether to buy your practice. Information is included such as how long in practice, how long at current location, number of employees, lease particulars, type of dental equipment included in sale, number of active patients, types of services provided, procedures referred out, which insurances the office participates or accepts, days and hours of operation, 3 year comparative financial statement and cash flow statement. This information however is only provided to qualified buyers who have
signed a Confidentiality Agreement.
Marketing of Your Practice
We use a comprehensive approach to market your practice. We start with our list of potential buyers. We sort the database to locate buyers who wish to buy in that particular location. Quite often we will have someone that is looking to buy a practice in your area. We also utilize various web sites and publications with general information regarding our listings. In addition, we promote your listing in our regular newsletter that goes out to approximately 5,000 licensed dentists in the Tri-state area. Our proprietary database enables us to mail to approximately 20,000 licensed dentists in Pennsylvania, Ohio and West Virginia when we choose to do so. We will also directly market either with mail or phone calls every dentist within a certain radius of your practice to help find a synergistic buyer.
Attempt to Create a Bidding Process
We strive to get the forces of supply and demand into action by trying to find
multiple potential buyers for your practice. In the ideal situation, this creates a bidding process that will drive up the price of the practice being offered for sale.
Attend Meetings between Buyer and Seller
We attend every meeting between the potential buyer and seller. This is
important as there is information that should be exchanged between the potential buyer and seller at these meetings such as how the practice is operated, specifics about services offered and referred out, etc. The initial meetings between buyers and the seller are not meant to discuss or negotiate the price of the business. We are very skilled at conducting these meetings and making sure they are productive for both the prospective buyer and seller.
Negotiate Offers Between Buyer and Seller
This is a very delicate matter and we are very experienced in dealing with a buyer that has made an offer. It is a very sensitive issue when you try to stretch the buyer’s offer as high as possible without losing the sale. The buyer needs to feel that he is getting a fair deal in the process and we are sensitive to the needs of all parties in these types of negotiations.
Obtain Letter of Intent with Money in Hand
Once an offer has been accepted the buyer needs to put together a Letter of
Intent along with providing hand money for the purchase of the dental practice. This gives the seller some comfort in knowing he's dealing with a serious buyer and lets the buyer know we will pause marketing the practice during this final phase.
Help with Allocation of Purchase Price
The Purchase Agreement will allocate the purchase price to fixed assets, goodwill, noncompete agreement and a consulting agreement. There are advantages and disadvantages to how the purchase price is allocated to each category depending on whether you are the buyer or the seller and your specific tax posture. We will help advise you in conjunction with your accountant on how to best allocate these funds.
Accounting and Tax Advice for Our Clients
We have a network of service providers that we can recommend should you need any accounting or tax advice related to this transaction. These providers have been screened to ensure they are among the best in their field at what they do.
Assist Buyer with Financing
You should be able to receive the full amount of the purchase price at closing. Should the buyer need financing we offer financing through several lenders that we work with. These lenders will generally lend 100% of their financing needs. The buyer usually will not need any money out of pocket. You (seller) should not have to finance any portion of the transaction unless that is something you prefer to do.
A Second Set of Eyes
We review each and every version of the Purchase Agreement along the way. We offer our advice to you and your attorney about what should and should not be included in these contracts. We also are involved in helping iron out any sticky issues between the parties that may arise in negotiating this agreement.
Available Weekends, Evenings via Mobile Phone
Questions, issues, negotiations, emails and phone calls do not always fit neatly into an 8-hour day, Monday thru Friday. We are available to our clients via email and cell phones at any time.
Keeping the Deal Together
Sometimes, negotiations get tense and potential is there for the deal to fall apart. We are particularly adept at keeping deals together by working through sticky issues with the buyer, seller, the accountants and attorneys.
Confidentiality
Last and most importantly, confidentiality is a major consideration. We
understand that the sale of your practice is extremely confidential. It is imperative that employees, patients, vendors, banks, landlords, etc are not aware of an impending sale until you are ready to notify them of the sale. Therefore, unless told otherwise, our contact with the seller is done strictly in person or via the mobile or home phone. All potential buyers must sign a confidentiality agreement before they receive confidential information. This agreement states that they are aware of the extremely confidential nature of the information they have been provided and that this information may only be disclosed to their accountant or attorney while analyzing this opportunity.
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