Posted on Dec 11, 2023 https://ctc-associates.com/dental-transition/consultantsFile ID 38874959 | © Sergey02 | Dreamstime.com
https://ctc-associates.com/dental-transition/consultantsFile ID 38874959 | © Sergey02 | Dreamstime.com
When you’re selling something, the most pressing question on your mind is usually: How much will I make? What will I get for this sale?
When making a sale, whether it’s your house, car, or dental practice, you want to make as much as possible. This amount will vary based on a number of factors, but certain standard expenses and fees invariably accompany the transaction of every dental practice sale.
You first need a proper valuation to determine your practice's worth. For this, you would ideally turn to a broker.
The fees for valuation usually range from $1,500 to $4,000, though there is fluctuation here as well. Many brokers choose to waive the fee if you list your practice with them, while others offset the cost against their commission.
Even if you choose not to have a broker in the middle, it’s still very important to get your practice valued properly before you sell.
For the purchase and sale agreements after a transaction, you need a skilled attorney to draft these papers. It’s a good idea to select someone specializing in dental practice sales - or at least having experience in the area. Attorney fees usually lie between $4,000 and $10,000.
Complexity, buyer representation, and requested changes during the review phase can influence this cost.
Dental broker fees are usually somewhere from 6% to 12% of the practice’s sales. Smaller practices may incur higher fees due to the greater time investment.
Selling without a broker is also an option if you want to cut down on those costs, but this doesn’t just complicate the process; it sometimes leads to the transaction collapsing, too. A broker’s experience and expertise are great assets when it comes to your dental practice sell.
Of course, you’ll have to pay some taxes with the sale. The purchase price consists of goodwill and tangible assets, such as equipment. The tax rate for each of these differs, but goodwill is taxed much lower than tangible assets, so you want to allocate as much of your practice to goodwill as possible.
If you’re looking for an expert dental broker to help with your sale, CTC Associates is here to help! Let our experts handle the process for you and get you the most out of your dental practice sale.