DENTAL PRACTICE OWNERSHIP TRANSITION STEPS

by Michael Perry, DDS

Assumes:

1. Solo buyer and seller, both either Sole Proprietors or Professional Corporations
2. Seller will be doing the associate recruitment
3. The seller has access to a qualified practice appraiser
4. Both buyer and seller have access to the appropriate legal and financial advice
5. The buyer is qualified and will be able to establish access to financing
6. Transition will be managed by a transition consultant

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Steps:

• Transition plan and timeline
• Establish seller’s attorney and financial planner
• Practice valuation
• Determine associate compensation (both before and after sale)
• Draft associate employee agreements (both before and after sale)
• Recruit associateEstablish buyer’s attorney and financial planner
• Establish financing source for practice sale
• Buy/Sell letter of intent (non-binding, buyer and seller to sign)
• Onboard associate (in-office trainings and workshops)
• Brand associate
• Draft all practice sales documents
• Escrow period
• Seller becomes associate and buyer becomes owner
• Leadership/management training for buyer