Transition Dos and Don’ts

It doesn’t matter how long you’ve been in business, a dental practice transition can be highly stressful and complex if you don’t manage it through a broker. To help demystify the process and ease you into a seamless transition, we’ve selected our top tips to let you know the dos and don’t of a successful practice transition.

Do Separate the Emotional and Financial Aspects of Your Decision

Sure, you may have put a lot of yourself into your practice and you may have mixed emotions over your decision to sell, but you don’t let your emotions dominate your decision-making.

Don’t Forget the Tax Implications

The lump sum that an interested party has offered you may look very attractive at face value, but have you considered tax costs? While you can’t negotiate how much tax you pay, you can structure your sale price more attractively to compensate.

Do Look for Assistance

Dental practice brokers help dental practices make the transition. So why do it alone?

It’s also important to mention that each sale has its own complexities and special needs that you need to consider. Perhaps an outright sale and hand-over are not ideal for your particular circumstance.

Do Have a Plan and Embrace Team Work

Follow a strategic approach, have a checklist, and document each step of the process. Seek advice from a broker, your attorney, and your accountant so you know you have all of your bases covered. Having the right collaborative team will ease much of the stress involved with a practice transition.

Do Brief Your Team and Ease Your Staff into The Transition

Your staff may be mature, responsible, and capable but you can’t assume they will all just slip into their new roles as if nothing has happened. Use your finely honed chair-side manner to prepare your staff for the change, and get their support.

Do Vet Your Transition Expert

Selling your practice is a big deal. Look into the credentials and experience of the transition broker you want to hire. If you don’t know where to start, ask your colleagues for referrals. Compile a list and interview people, just as you would if you were filling a position in your practice.