Rescuing a Failed Dental Practice Sale With the Right Expertise
Reducing the risk of a failed sale
Selling a dental practice can be a complicated process where many points of failure present themselves. Without assistance during the sale, many dentists struggle to finalise the agreement.
All the information you need
As all dentists who have ever owned their own practice know, dental practices are complicated businesses. Unsurprisingly, this makes the selling process more complex than your standard property sale, which can be a headache for an owner trying to sell their practice to fund retirement or change direction.
For many, the complexities and pitfalls of the sales process can lead to abandoned sales. After what can be a stressful negotiation period, seeing a sale fall through can be disheartening.
However, as this case study shows, if you have the right knowledge and guidance at hand, the chance of a failed sale lessens, and even if one does occur, you’ll be able to get right back on track and get your practice sold.
Why was there a problem?
A dentist had done all of the hard work themselves after a friend in their industry expressed interest in buying their practice. They’d negotiated a deal in principle, but had not exchanged any official confirmations. Sadly, our client did not realise that this was no indicator of a successful sale and began planning their retirement with the funds they expected to receive.
Unfortunately, but unsurprisingly to us, the sale fell through because the buyer could not raise the necessary finance. This left the client feeling frustrated and disheartened, with a practice still for sale but without the willpower or desire to repeat the sales process.
Thankfully, the practice owner contacted our selling agent for help. Recognising that going it alone was the main issue they had last time, they got in touch to see if we could help them sell their practice, and we were happy to help.
Why we were able to help
A failed sale can feel like a crushing blow, but it’s fairly rare if you correctly follow the sales process. In this instance, the dental practice owner had not actually lost a sale; they’d lost what a traditional selling team would deem a prospect. The buyer had not actually had any funding arrangements agreed or explored, the property’s value had not been independently assessed, and no agreements had been signed.
Our selling agent listened to the practice owner’s explanation of the sale and then recognised some key issues. From there, we recognised that the owner was already tired of the selling process and just wanted help in selling the property for the right price. We were able to involve specialist dental accountants to value the business, then independently identify and vet three new prospective buyers, so the client didn’t have to.
This cut out the ‘courting’ process where the owner would need to field offers from many different buyers and instead gave them a focused list of buyers who could meet their asking price and fit their requirements in terms of ongoing agreements around employees and the practice to protect its legacy.
Crucially, our selling agent selected buyers who had also lost out on potential opportunities recently so had the credit arranged and agreed and were keen to get the sale completed - expediting the process for both parties and making it more successful as a result. Ultimately, this led to a sale that was agreeable to the seller and buyer and cut down on the complications and failures inherent to dental sales without a selling agent.
About dental practice finance
At Rangewell, we specialise in dental practice finance options for buyers and sellers alike. While a seller may simply need a helping hand from a selling agent to get their property on the market, they may also need help in funding new equipment or upgrades to add value before the sale. A buyer, conversely, needs help in securing finance to be able to buy their dream practice.
As we help both parties, we are well-positioned to present sellers with buyers who have pre-approved credit and fit their goals. This means we can make sales far more streamlined and help you move on from your practice with goodwill and the asking price you deserve.
Sell your dental practice with Rangewell
A failed sale is never easy. Whether you’ve experienced one yourself or want to avoid the stress of seeing a sales process go awry, get in touch with Rangewell and our selling agent today. Talk to us about your practice, expectations, and rough valuation, and we’ll help guide you through the selling process to make it more efficient. We’ll talk through different buyer types, NHS and CQC considerations and offer specialised advice and guidance that will help you achieve the sale you’ve envisioned to fund the lifestyle you’ve dreamt of.
Contact us to get started with a no-obligation consultation.