HOW LONG
WILL IT TAKE
TO SELL
MY PRACTICE?
Typically, you want to plan about 12-18
months to sell a practice. You should be
realistic in your expectations. This is a
process, not an event.
When to Inform Your Staff
About Your Intentions
If you’re 80 years old, they’re unlikely
to be surprised. But if you’re in your
60s or early 70s, it’s better not to tell
the staff you’re thinking about selling
because the staff tends to feel
insecure about their job. The same
applies to patients. It’s best to not
involve the staff or tell patients until
such time that a contract has been
signed with the prospective
purchaser.
Confidentiality and Talking with Colleagues/Classmates
While the temptation to try and help your own transition is strong, it is usually
not beneficial. For this reason, consult with your professional advisor only.
Getting the opinion of colleagues, classmates, sales reps, and others can lead
you down a path that is counter-productive to a successful transition. When
word gets out in the community, and it will, you risk needed to manage
challenges that would have otherwise been unnecessary. Moreover, the need
to manage these challenges will almost certainly negatively impact the value
of your practice. You could lose staff and patients. In addition, buyers who are
referred by friends could have preconceived notions about your practice that
will create limitations in the transition outcome. Proper introductions to
suitable buyers can be made at the appropriate time and only after a
Nondisclosure Agreement is signed.
Important Documents for You to Use with Buyers
If you are thinking about selling your practice on your own, there are two
important documents you should be sure to use.
1 A nondisclosure agreement should be signed by any party of whom you
reveal your intentions to (aside from your personal advisors). It should
also be in place for any information you provide them about your practice.
2 A HIPAA form between you and any buyer who reviews patient records
or reports with patient names.
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MAY/JUNE 2020 | PENNSYLVANIA DENTAL JOURNAL