The Role of Dental Practice Transition Consultants
Dental Practice Transition Consultants
Dental practice transition consultants are in a unique position to offer services whether you look to buy, sell, or transition to a new dental practice. These professionals are experts in transaction advisory and come with in-depth industry knowledge.
A dental practice transition is a complex process. For instance, it requires thoughtful planning and perfect execution to complete a practice transition. Dental practice transition consultants need to balance the benefits of both sides in a transition process. Thus, it requires special skills and expertise to execute the transition successfully.
What is Dental Practice Transition?
A dental practice transition is a process of incorporating another entity into an existing practice with mutual consent. The process takes place by defining the mutual interests of both sides and transition to a new entity at a specified future date.
A dental practice transition can happen with a practice sale, buy, partnership, divestment, hiring associates, mentoring, and merger. However, the process is different from an immediate sale or buy transaction.
Dental practice transition is an important decision as it affects the mutual benefits of both sides. For instance, dental practice transition consultants can cater to the needs of both sides. They do this by developing a transition plan that works for both parties.
Dental Practice Transition v Immediate Transaction
A key distinction between a transition and a transaction is the nature of the process that follows the turn of events with contrasting features. A transaction looks to maximize the financial benefits of both sides. A transition aims to build stronger relationships between the two sides and also maximize the financial benefits.
A transition plan is developed with a goal of growth or transfer of ownership in mind. Nonetheless, it takes long-term planning and careful execution for a smooth transition. Both parties in a transition may have to work together for a while before the actual transaction takes place.
The Role of Dental Practice Transition Consultants
As we defined above a dental practice transition is a process that completes with a transaction. The primary role of a dental practice transition consultant is to form a success plan for the client.
As a dental practice transition consultant, we take a holistic approach to evaluate the state of practice and needs of our clients. We ensure our clients are ready financially, practice is prepared to showcase what it offers, and the transition takes place successfully.
Let us briefly discuss some key steps in a transition process that you should discuss with a dental practice transition consultant.
We help our clients to define their goals clearly. A transition can take place in several ways. Selling a practice requires a different plan than buying or partnering with another practice.
For this reason, we provide a clearly defined transition plan to our clients. This includes practice valuation to marketing, and increasing valuation to completing the transaction.
Practice valuation does not include profit discounting only. For instance, a practice inherits a brand name, intangible assets, goodwill, and human resources. Likewise, quantifying these intangible assets is a challenging process.
We ensure our clients the best practice valuation by using different valuation methods. Setting the right practice valuation price is important for a successful transition.
A dental practice may need a transition for several reasons. However, every case requires a different course of action and planning.
Some of the most common transition types include:
- Buying a practice
- Selling an existing practice
- Merger and Acquisition
- Divestment of a segment (branch)
- Associates and Partners
- Owner Retirement
Each transition process is unique. The most common types involve a sale or buying an existing practice.
Maintaining Practice Standards
You’ll need continuous support from dental practice transition consultants at every stage. Practice valuation is only the first step. Also, you need to ensure that your dental practice maintains the standards that back the price tag.
A step ahead, dental practice transition consultants should advise you to enhance practice value that will contribute to practice valuation eventually.
Price Negotiation and Course of Action
Next, dental practice transition consultants will do the marketing and find potential clients for you. Depending on your requirement, you may need to evaluate different partnering or client options.
Once both sides agree on a price, both sides should define a course of action. Moreover, a transition process may require working both sides for a while at the same place. Thus, as a dental practice transition consultant, we ensure both sides understand the needs of each side and work cohesively.
Completing the Transition Successfully
At the final stage of a transition, you’ll need to go through the formal agreements and paperwork. For instance, you may need to work with an attorney at this stage. However, you’ll need continuous support from the transition consultant for key issues such as transfer of funds, taxes, transfer of ownership, assets evaluations, etc.