of the many pitfalls you could encounter include understanding the value of your practice to a DSO , work back arrangements and agreements , how much of the sales price the DSO can hold back and the conditions required for you to receive the rest of your money , tax planning to put the most money in your pocket , knowing who you are really dealing with and the DSOs track record , and last but not least - finding the right fit . Make no mistake that selling to a DSO involves a partnership . Undoing a bad deal or filing suit to recoup what you thought was the arrangement can cost you tens of thousands of dollars , not to mention the emotional strain that drains years from your life .
Understanding the DSO marketplace and creating a competitive environment where you receive multiple DSO offers vying for your practice is critical to getting the best deal . You will never get the best deal from a DSO that has no competition for your practice .
Watson Brown ’ s experience equips them with the knowledge and expertise to successfully navigate sellers through a DSO transition . Remember – you were the expert who built and grew your practice to what it is today , so let the transition experts take over from here and guide you through the complicated negotiations of a successful sale .
The Emotional Side
Beyond negotiating the complexities of legal contracts and tax planning issues , many brokers overlook the unexpected emotional side to practice transitions . Practice transitions can be very emotional for both the buyer and the seller . For the seller who has invested years of hard work into a practice that has defined his or her career and for the buyer who is taking on debt and responsibility , making sound decisions in an emotionally charged atmosphere can be a challenge . Watson Brown provides a stable platform and reduces the risks by ensuring that both the seller and buyer are fully informed and prepared .
Confidentiality . The confidentiality of a practice transition is a common concern for both the seller and buyer . “ We understand the importance of strict confidentiality in any practice transition ,” notes Jeremy Brown . “ Our clients can feel confident that their private information is secure and protected at all stages of the transition process .”
Marketing in Our Changing World
Today ’ s buyers search the internet for practice opportunities in between prophy checks , during their lunch break , and long after midnight . Watson Brown takes full advantage of effective online campaigns to advertise their client practices .
“ Our marketing campaigns advertise our clients ’ practices for sale 24 / 7 ,” notes Jeremy Brown . “ But their impact is multiplied by our best marketing tool – our reputation and network within the dental industry . Our past clients tell other dentists about their successful transitions using our firm which brings exposure for our current practice listings and attracts qualified buyers .”
“ Working with Watson Brown was so easy ! Thanks to the team I was able to do my practice transition smoothly and efficiently ! I would strongly recommend them !”
– Archana Lankupalli DDS
Where a single broker might divide his or her time between multiple clients , Watson Brown ’ s clients are served by a team . Their staff includes a legal assistant , technical writer , and closing agent , who works together to represent each individual client ’ s interests and markets the practice every day , around the clock .
Pricing to Sell
An accurate valuation of a dental practice is one of the most important and complex components of a transition . The fair market value of a dental practice is not calculated using a simple equation or multiplier . A reliable practice valuation demands a comprehensive understanding of both the objective and subjective factors that comprise the value .
Dr . Terry Watson emphasizes that the practice valuation is not just a matter of examining the financial records of the practice . “ A practice ’ s true value is composed of many factors , including the location , equipment , staff , patient base , and cash flow ,” he notes . “ Only when every facet of the practice is evaluated can you determine its fair market value .”
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