by Susan A. Spear, Broker/Business Intermediary
With so many DSO’s “popping up” and I do mean “popping up” in the dental practice sales market, it is very important to know what a Qualified Private Buyer should be. The dentist who wants to purchase a dental practice in today’s marketplace should be honest, caring, authentic and willing to demonstrate that he/she is committed to helping the seller transition his/her practice in a supportive and professional manner.
Too often a buyer’s approach when reviewing a practice opportunity is finding what is “wrong” with the practice rather than what is “right” about it. A qualified buyer should first decide “what 3-5 things do I need to have in the practice to make it right for me?” These items are usually things like “location, number of treatment ops, and income generation.” Others include “how much treatment is being referred out or how strong is the hygiene department?” An acquisition of another dentist’s practice is not about buying the perfect practice, rather it is about buying a practice that the buyer can take forward to meet their needs. This approach will save you time, bring you the best options and change the experience for all parties. Dentists as sellers, are looking for buyers who appreciate the opportunity to have the practice go to someone who shares their philosophy of care and who respects the years of devotion they have given their patients and staff.
In addition, a qualified buyer should be one that can financially complete the sale of the practice when working with a 3rd party lender. Most buyers do not have the cash to buy without a loan. Not only should there be one lender willing to work with them, but a qualified buyer recognizes that it makes sense to explore several different lender options to make sure they do not lose the practice because one of the lenders is unable to fund. The qualified buyer should have a good credit score, demonstrate good fiscal management, and be able to show that he/she can handle the patient load.
At SAS Transitions Dental Practice Brokers, we believe in the dream of private ownership of dental practices. Dentistry is a wonderful small business opportunity for qualified private buyers seeking to continue the legacy of professionals who have come before them. We embrace the opportunity to work with dentists who make a difference in healthcare. When the transition of a dental practice occurs between two motivated individuals to make it work, there is nothing greater than witnessing the joy each party feels when the process has gone right!