Helping a seller to navigate a buyer’s market and find ideal outcomes for a selling dentist
As a dentist, selling your practice could be a once-in-a-lifetime opportunity. However, it requires careful consideration to ensure the sale suits your goals and expectations.
One of the first considerations a dentist needs to make is understanding the multiple ‘types’ of buyer - because only by knowing which type suits your specific practice and values can you really work towards a sale that suits you.
There is a distinct difference between selling to individuals, corporates or even the newly-emerged market of smaller groups. Here at Rangewell, we help broker finance for many types of buyers but also act as selling agents for dentists looking to move on, which means we’re ideally placed to help guide your decision whichever side you sit on.
This ability to understand buyer type and help guide sellers towards their ideal outcome was useful when we were approached by a dentist who wanted to sell but didn’t know which buyer type to target. In fact, they didn’t even know that they needed to target a specific type of buyer - instead of thinking they could just sell and field offers from anyone.
Why we were able to help
We helped guide this dentist through the process and helped them understand the difference between each buyer type, showing them that what they wanted from the sale may not be possible from certain types of buyer. For example, suppose a dentist only cares about extracting the maximum value they can from a sale. In that case, their choice will be different to someone who wants to protect their business’ reputation and secure an ongoing legacy.
In addition, many dentists don’t actually suit certain buyer types. For example, corporate groups, which may be able to offer higher prices, are typically only interested in a specific type of practice of a certain size and income level. If your practice doesn’t meet those expectations, you’ll need to shift your focus to a different buyer.
In this case study example, the dentist had been operating their business for over 30 years and had never considered the corporate/property-focused aspect until the sale. This meant they had yet to really decide on their sale outcome. We worked with the dentist to map out what the ‘ideal sale’ would look like, which was a combination of the best selling price and selecting a buyer who would protect the ongoing legacy of the business and, if possible, keep existing employees in place.
One important factor that the dentist had not considered was the idea of adding value to the sale during the consideration process. Once they got in touch with Rangewell, we were able to identify some cost-effective improvements to the practice that made it more appealing to the chosen buyer type (small group), increasing the asking price beyond the cost of the improvement work so that the dentist would not only get a better end-result from their sale but also that the legacy of the practice would remain strong, since the overall facility was improved, and the buyer type we chose was interested in continuing the practice and agreeing to certain terms in the sale.
From there, we helped guide the dentist in the more complex elements of the sales process, such as the SPA (sales purchase agreement) and the NHS contract transfer. This meant they were well informed throughout and could speak to buyers with a clear understanding of what the buyer wanted and realistically communicate on their own terms.
While there are many other considerations you’ll need to bear in mind when deciding to sell, identifying your own strengths and weaknesses and then matching that to specific types of buyers is the first step to securing the right value for your treasured business.
About dental practice sales
Selling a dental practice is an exciting opportunity and a way to guarantee the type of financial future and retirement you want. It may also be a great way to reposition your current professional life, diversify your portfolio or unlock capital. The key thing is identifying what your situation is, how it relates to the market and how to attract buyers that suit your specific goals.
At Rangewell we act as a selling agent for many dentists, pharmacists and other medical professionals who own businesses and wish to sell. In these complex, regulation-heavy sectors, we know how important it is to have a partner on your side who will ensure you get maximum value from the sale but also keep you informed of your responsibilities.
Contact Rangewell today, and we’ll help give you the information you need to make your sale more successful. We can also help arrange finance for the buyer to help them meet your value expectations.