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Practices For Sale Associateships Available |
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1-5 Yr. Sale Planning & Free Consultation |
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Specializing in Dental Practice Sales, Transitions, and Appraisals |
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George D. Stollings and Associates, Inc. |
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How To Choose A Transition Consultant or Broker |
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1. First, determine which service you need.
a.) Consulting services are appropriate when potential buyers & sellers, or owners & associates have already met, and assistance is desired to help structure, negotiate, finance, and complete the desired sale or future sale.
b.) Brokerage services are appropriate when practice owners: (i) need to find buyers for their practices; and, (ii) then also benefit from assistance in structuring, negotiating, financing, and completing their sales.
c.) Some companies offer only one of the above services. We offer both.
2. Then, compare the services of consultants and brokers.
The Best Way To Compare & Choose? Ask These 16 Questions
A. 6 Questions To Ask If You Need A Practice Broker:
¨ Is there any upfront fee or charge if I list my practice with your Company?
¨ Is the same percentage commission charged for all practice sales, or do commission rates decrease as the value and sale prices of practices increase (to prevent exorbitant commissions)?
¨ Is your listing agreement “exclusive” or “non-exclusive”, allowing me to retain the right to sell my practice myself (or through another broker) with no commission due?
¨ If I find my own buyer while listed with your Company, but need your assistance to structure and complete the sale, do I have to pay the full commission?
¨ In seeking a buyer for my practice, how and where do you advertise my practice? Will there be specific ads for my specific practice?
¨ Do you also charge and receive fees from the potential buyer?
B. 10 Questions To Ask If You Need Either A Consultant Or Broker:
¨ Are your consulting fees fixed fees or are they commissions on sale prices?
¨ Does your company sell any other products or services to dentists, or are you affiliated with, or dependent upon referrals from a company that does?
(Inserted Note: Should you be interested in the answer to this question? You might best answer that by asking yourself the following questions:
1. Would equipment upgrades for your practice increase your practice’s value enough to create a net gain in the return on your sale, or would the increase in your practice’s value and sale price be less than the cost of the new equipment, resulting in a net loss on your equipment upgrade expenditure? Should the person or company that advises you on this issue have any financial interest in equipment sales? 2. If a company has been selling products or services to you before your practice sale begins, could a buyer reasonably question whether that company could have a bias toward you going into the early steps of the sale process? If the company has a natural interest in obtaining the buyer’s business after the sale, could you not reasonably question whether that company could develop a bias toward the buyer as the sale process progresses. Is their any potential for multiple stage conflicts of interest resulting from a company deriving significant and ongoing income from the sale of other products or services before, during, and after the sale? 3. Why does the company want to involve itself in practice sales, if its primary business is the sale of other products and services? Is it seeking to add another profit source, or is its interest in positioning itself for additional sales peripheral to the practice transition, or following the practice transition? 4. Can a company more easily be objective if it specializes solely in practice sales and transitions, and does not derive any income from other sources beyond successfully completing the practice sale and / or ownership transition.) ¨ For my protection, will you willingly welcome and respect the input of my personal accountant and attorney?
¨ Do you have an option in which the practice owner pays your fee, an option in which the associate or buyer pays your fee, and do you have an option in which you act as a neutral intermediary, and are paid by both parties? And, who do you represent in each case?
¨ Can I see a sample of your practice appraisal work?
¨ Are your structures for sales and transitions standardized, or do you structure each one based on the specific goals and objectives of the parties?
¨ How many years of experience does the specific person, that will personally meet and work with me, have?
¨ Are you based in, and do you specialize in my region of the Country so that you understand practice values in this area, as well as the perspectives of owners, associates, buyers, and sellers in this area?
¨ Will one person work with me through every stage of the transaction, or will I have to be switched to, and work with, different people at different stages?
¨ Do I have to pay to travel and attend any seminars or presentations to learn about your services and transition structures, or will you travel to my office to explain your structures and services without any cost to me?
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“Dr. Stollings successfully brokered the sale of my first dental practice in 1990 at the appraised value and recently completed the sale of my second dental practice at the appraised value. His years of experience in practicing dentistry, operating a dental practice… …and 20 plus years of brokering dental practices proved invaluable in this recent successful dental practice transition.” Roger Clay, D.D.S. Florida
RE: Dr. Stollings. “He was always straightforward, honest, and professional.” Joseph Wiggs, D.D.S. Tennessee
“An extremely honest, straight-forward approach with a very organized plan that was custom tailored to fit my needs…” William Denton, D.M.D. Kentucky
“Dr. Stollings’ lengthy experience.. ..allowed him to view the practice transition from the eyes of both the buyer and seller with concern for both. Thanks to excellent marketing and a keen understanding of the type of buyers we were seeking, we were thoroughly satisfied both with our buyers and the practice sale price.” George Hamilton, DDS & Julie Hamilton, DDS West Virginia |