North Texas Dentistry Convention Issue 2014 | Page 34

legal matters

Are You Getting
PRACTICE ACQUISITIONS

RIPPED OFF?

by Joseph McGregor
A recent study by the University of Kansas confirms what life
experience has already taught us: Sellers typically see a higher
value in what they are selling than do buyers.

Specifically, the Kansas researchers noted that persons selling
items unconsciously attach sentimental value to their asset. This
drives up their perception of what the market price should be.
Commonly, this perception outpaces the reality of the marketplace. The same phenomenon is almost uniformly true in dental
practice sales.

Before I go on, I should note that I am a lawyer. I have no credentials to properly value a practice—there are plenty in the
marketplace qualified to do that. I am not one of them. Instead,
I shepherd clients through the purchase process, which includes
helping clients understand exactly what is being bought.
Dentistry is unlike most businesses in that the heart وB