In late May 2017 I met with Dr. Dave
Moffa (Dr. Moffa has written for the
PDJ in the past) from Paragon to
discuss my situation. He explained the
timeline and said it could take up to two
years to sell my practice. That seemed like
a long time, but I know how many new
dentists had been coming to Erie and
very few, if any were starting out purchasing
an existing practice. It would take some
luck to make this all happen. He forwarded
me a large packet of paperwork a couple
weeks later to start the valuation process.
I can’t tell you how glad I was that my
practice was already computerized. The
reports I needed for the valuation were
easy to get on my practice software. The
details would have been much more
challenging without it.
Once I had gathered all the requested
information it was time to send it in and
wait for a call. In July we met to discuss
the appraisal and determine if I was ready
to move forward. It was decision time for
me. Selling my practice would be a walk
away. I was a one doctor practice in both
the volume of patients I saw and the size
of my office. There would be no staying
on as a senior associate for months or
years. But it was supposed to take two
more years before I might sell, and there
was no guarantee that would happen in
that timeframe.
A couple weeks after my listing agreement
Dave called me and asked me what
I thought about a merger as an option.
My reaction was exactly the title of this
article. He explained that he had been
through the process himself more than
once in his current practice. Basically a
dentist, already in practice, who was looking
to grow their practice immediately, would
acquire me and my practice for a period
of time to improve the likelihood the
patients would stay with the new practice.
I would no longer be the owner, but
would continue to practice and treat
my patients, but just at a different
location. Interesting. Maybe a change
of scenery and no longer running the
entire show would be just the ticket to
extend my career.
I provided a list of colleagues I thought
might be in the market to expand their
practices and Dr. Moffa did the rest. None
of those had interest at that time so the
practice hit the open market in late
August. By mid-October I learned that a
dentist who was only a half a mile away
from me was interested in the merger.
Dr. Moffa spoke with him and then I met
with him and we discussed practice
philosophies, staff, working together
and of course how much longer I would
practice. By the end of November we had
a signed Letter of Intent, and then over
the next several months the details of the
contract, the Asset Purchase Agreement
(APA), fee schedules, and other pieces
were hammered out after going back
and forth. One of the hardest parts of
this entire process was keeping the sale
confidential from almost everyone
(except family), including my staff, the
people other than me who would be
most affected by this merger.
Finally, by April 2018, we had a contract
both parties and their attorneys were
happy with. I guess this was really
happening now. It was time to tell my
staff. What made this a little easier for me
is that the dentist who we were merging
with planned to hire my entire staff. My
part-time hygienist already worked four
days a week in his office so I saw her as a
bridge between the two staffs. Once we
signed the APA, we had to set a date to
physically join both offices at his location.
Our two staffs and spouses met at the
new office and had a chance to meet,
tour the office and break the ice. I can tell
you there was a lot of walking on eggshells
that day.
A month later, on May 31, 2018, we started
working together in one office. It was
literally like we picked up my office and
just moved it down the street. I believe
that is what made this transition, this
merger, much easier for our patients and
my staff. They would still be seeing me for
their treatment along with my assistant.
The two hygienists they always saw at
my office were both there to take care
of them at the new office and the person
answering the phone on the same number
was still the same voice that had heard for
the last 17 years.
In May it marked two years since the
merger. I won’t tell you it has not been
without growing pains. Joining two offices
and especially two staffs who were loyal
to their bosses was a little challenging,
but everyone still had their jobs to do, just
in one place. What I found the easiest part
of the merger was working with another
dentist after 32 years of being an island.
Having that second person to run a case
by or even send a patient to for a procedure
I would not do is awesome. What has
truly been the best part of my decision
has been going to the office every day,
treating my patients and going home.
Other than that I no longer have any
responsibilities at the office. The merger
as a transition option has been a way to
extend my career and provide a more
positive outlook every day, much more
than I thought possible. I know that when
my time at the practice draws down there
will be an opportunity for a younger
colleague who can step in and have the
chance to practice in this same setting.
Merger! What’s a merger? Well now you
know and you know how that worked
for me. Maybe it could be right for you.
MAY/JUNE 2020 | PENNSYLVANIA DENTAL JOURNAL
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