Components of a Transition

Dental professionals who own their practice will eventually reach a point when they feel ready to make a career transition.

The circumstances surrounding any business transition will vary. A doctor may decide to transition because they want to retire. Some doctors may wish to divert the responsibilities of ownership to a partner organization. Whatever the reasoning, it is essential to have a team of experts in place who know the practice transition process and its numerous details. Below we explain the basic components of any practice transition. Reach out to our team if you have any questions about the process or material you would like us to review with you. 


Strategic Planning & Discovery: Before initiating the transition process, we work with the practice owner to develop a strategic plan outlining the goals, objectives, and desired outcomes of the transition. Our planning and goal-setting sessions will guide the entire process and help in partner selection.


Analysis & Valuation: A crucial step towards getting ‘transition ready’ is determining the financial value of the practice. Our valuation methodology involves assessing the financial performance, patient base, assets, and other critical factors to arrive at a market value. We lean on a proprietary process to arrive at our valuation numbers and use this formulation to secure offers.


Finding the Right Partner: Much like in life, it can be challenging to find the right partner. Our extensive knowledge of DSOs and network of industry connections is an asset you can depend on. Drawing on our deep understanding of your business and personal goals, we apply this knowledge to market your practice to suitable partner candidates.


Negotiation and Due Diligence: Once we have identified potential partners, negotiations take place to agree on the basic terms and conditions of a transaction. Our negotiations typically involve topics like purchase price, payment structure, transition period, and non-compete agreements. We work to support the partner throughout the due diligence phase. The purpose of due diligence is to verify the financial, legal, and operational aspects of the practice.


Legal and Financial Considerations: Engaging legal professionals experienced in these deals is essential. We have a network of attorneys who will draft and review legal documents such as the purchase agreement, any non-disclosure agreements, employment contracts, lease agreements, and any other relevant legal paperwork. Our transition success team will assist with tax planning, structuring the deal, and ensuring compliance is met within all documentation.


Transition Period: After the deal is finalized, a transition period is agreed upon. During this period the practice and its new partner will work together to finalize the transfer of ownership. This typically involves a gradual handover of patient files, introducing the new ownership group to staff, and implementing any relevant operational changes.


It is important to note that every practice transition is unique, and additional components may be involved. This is largely contingent on the individual needs of our clients and their specific goals professionally and personally. Seeking guidance from seasoned professionals familiar with these deals is crucial for a successful transition. Contact one of our business development representatives and lay the foundation for defining your future.




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