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Negotiating Tips When Buying a Dental Practice

outside of dental office

If there is a dental practice for sale that you want to buy so you can expand your professional horizons and grow your client base, then that's great. The decision to purchase a dental practice is a significant milestone in a dentist's career. It's an opportunity for professional growth and financial investment. However, the process can be complex and daunting, requiring careful consideration and negotiation. But don't worry, we have you covered. In today's post, we'll share with you the best negotiating tips when buying a practice. Let's get started….

Tip#1- Change Your Approach 

When buying your dream dental practice, it is important to look at the bigger approach and choose the right one. It is crucial to understand that approaching the acquisition of a dental clinic for sale with a mindset akin to buying a car or a house is a big no. So, tip number one is don't just focus on negotiating the sales price and saving a few bucks.

Buying an established dental office for sale means you will have access to dental equipment, inventory, staff, and clients. Also, for staff and client retention, you will need the assistance of the seller post-sale. Therefore, don't be too aggressive. Find out the fair market value of the dental practice for sale and work around it.

Tip#2- Work with a Transition Broker

Partner with an experienced and professional dental transition broker instead of working with a regular broker. As the name suggests, a dental transition broker facilitates the transition process between the seller and the buyer. 

These professionals possess an in-depth understanding of the market, have a network of contacts, and can provide valuable insights about your dream dental clinic. Their expertise is invaluable in guiding you through the negotiation process.

Your dental transition broker will review financial records, patient demographics, equipment inventory, and potential legal issues. They will help you gather and evaluate this information, ensuring you comprehensively understand the practice's history, potential, and fair market value. Brokers often have insights into the seller's objectives, which can be leveraged during negotiations.

Put simply, they provide you with the tools, guidance, and information to make it happen for you successfully!

Tip#3- Be on Good Terms with the Seller

As mentioned earlier, don't push hard on lowering the price; instead, strike a deal that works for you and for the seller, and the deal is closed happily. This is a huge advantage for you, as the seller may be willing to go above and beyond and introduce you to patients and transition the practice. This means you will also have a well-equipped dental practice and a loyal client base. It's a win-win all the way.

For more negotiating tips or dental transition broker assistance, contact us. CTC Associates can help you with your dream dental practice for sale and ensure the transition process is as smooth and seamless as you want.

Posted on Nov 13, 2023
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