There will come a time when you are ready to submit your “Dental Office for Sale by Owner” paperwork for whatever reason. Making the decision to put your healthcare practice for sale is never an easy decision. And the process can be just as lengthy and arduous. But if you do your best to avoid these mistakes, your dental transition should be relatively painless.
Not having your documentation ready could be costly in a lot of ways.
As with every type of business, having your paperwork in order is quite important. Selling your healthcare practice even more so. Not having the proper paperwork and documentation ready to handover will result in numerous setbacks, delay your transaction, and will likely cost you money.
If you don’t have your contracts in writing, you’re asking for trouble.
Having all agreements and contracts in writing will save you a lot of trouble. It’s just common sense.
Undervaluing your practice could also be costly.
In addition to preparing an inventory of your assets, have your practice evaluated by a third party to accurately reflect its value.
Not honoring confidentiality is a bad look.
You always want to treat the information and negotiations exchanged during the buying process as confidential.
Not being transparent is bad for business.
Whether intentional (we hope not) or through a mere slip of the mind, not giving the buyer accurate information or providing misleading representations of your business pre-contract is a bad look for your practice and your reputation. It is grounds for the buyer to take contractual and statutory action against you.
If you don’t extend that transparency to your staff and patience…
You want to keep your staff and patients informed of what’s happening with the practice and how it will affect employee jobs and patient care. Ensuring that your staff and patients are taken care of during and understand the change of ownership is important.
If you don’t have a structured handover process, things could get messy.
It’s simply good business to have a structured plan in place to hand over ownership of your practice to ensure the transition goes smoothly. Make sure you discuss ongoing patient care and management with the buyer, introduce the buyer to your primary staff, and negotiate a handover period to train the buyer. It’s a prudent move to negotiate your continued presence at the practice for a period of time to ensure a smooth change of ownership.
Underestimating the value of advice from experienced advisors is a huge mistake.
Don’t be too proud to accept the advice of experienced advisors like dental practice brokers. While you may know the ins and outs of your healthcare practice, financial and legal advisors can guide you on the sale of your practice as well as the legal and tax implications.
Not considering the risks is not cool.
Ongoing risk management should be a priority. You want to make sure the patient records are properly secured. You don’t end your obligation to confidentiality and security of patient records with the sale of your practice.
If you neglect your legal obligations buyers could lose faith in the process.
As the seller of a healthcare practice, you should know and understand your legal obligations. Expect the buyer to include a restraint of trade in your Contract of Sale.
At Aptus Exchange, our dental transition consultants can assist you with your healthcare practice for sale. To speak with one of our practice brokers, contact us here.
