· Significant Savings On Legal & Accountant Fees For Both Sellers & Buyers: The hours of service required
by both parties’ attorneys and accountants are dramatically reduced by our: (i) experience in practice valuation; (ii) guidance
in purchase price allocation to various asset categories; (iii) experience in guiding and assisting in negotiations; and, (iv) our
knowledge of the key issues required in practice sale documents, combined with our ability to develop and provide draft documents for
use by the parties and their attorneys and accountants, together eliminating the expense of the parties having to pay their attorneys
to explore for the many practice transition related issues to address. (Note: Ask us how much difference we’ve seen
in legal fees.)
· Favorable Tax Treatment: Proper allocation of the purchase price, to the various categories of assets
sold, can increase the percentage of the sale price that is treated as long term gains, and decrease the percentage subject to ordinary
income tax rates. In addition, for incorporated (c-corporation) practices, correct structuring of the sale itself can minimize
the effect of double taxation. Our experience in structuring sales lets us work in combination with your accountant to achieve more
favorable tax treatment.
· Mediation & Reconciliation: Managing and reconciling the issues raised by the buyer, seller, their
2 accountants, and their 2 attorneys.
(Inserted Note:
Before sale documents can be developed, finalized, and signed, this complex 6-way negotiation process inevitably arises in almost
all practice sales. It is the most critical stage in the practice sale process, and it is the stage at which the sale process
is most likely to fail.)
· Finding The Correct Buyer: Finding qualified buyers whose career and financial objectives actually
match with the opportunities provided by our clients' practices — making the sale and purchase then feasible for both parties.
(Inserted Note:We print and mail 10’s of 1’000s of full color advertisements on behalf of our selling clients each year — targeted to those dentists
most likely to purchase practices. Our website supplies additional valuable exposure for our selling clients. In our last analysis,
in a 20 day period, 154 different persons clicked into the “Practices For Sale” section of our website.)
· Documents & Agreements:Input into, and our role in development of the project’s documents and agreements.
(Inserted Note: Many provisions in dental
practice sale agreements are unique to dental practice sales, and are not managed as they might be in the sale of other businesses. Among them: (i) allocation of purchase price and its effect on both parties’ taxation; (ii) dealing with seller’s accounts receivable;
(iii) seller’s rights to access of patient charts and records if a law suite is initiated after the sale; (iv) buyer’s use of seller’s
name following the sale; (v) timing the introduction of buyer to staff members; (vi) content of seller’s letter of termination and
introduction of buyer to patients; (vii) management of treatments in progress at the time of the sale; (viii) seller’s role in any
treatment remakes required shortly after the sale, etc. Experience in dental practice sales is required to identify and correctly
address the many unique aspects of dental practice sales.)
· Better Financial Results: Quality practice valuations (commonly
called "appraisals") establish and document the practice’s fair market value for seller’s, buyers, and the accountants and other advisors
for both buyers and sellers. This prevents the most common financial errors made by practice sellers:
Under-selling, not realizing the full value of their practices;
Over-pricing — which
can either drive off potential buyers, or lead to their purchase loan applications being rejected.
· Organization: Staying
on top of the process, keeping it moving forward, and bringing the transaction to a closing.
· Easier: Making the process smoother,
more efficient and less difficult for the both parties.
· Purchase Loan Source: Guidance and help in obtaining the buyer’s purchase
loan.
· Experience: Leading to better understanding of, and resolution of both parties’ concerns.
· Advice: Provided
to the client at various crucial decision points in the process, or during negotiations of critical issues.