Definition of distress - “Acute or extreme pain or anxiety,
state of extreme necessity or misfortune, to compel by pain or force of
circumstances“.
Selling a dental practice in a distress situation is never
easy or pleasant. It is laced with many difficult but related issues, i.e., maintaining
staff, maintaining productivity and maintaining practice value.
When a distress situation (usually disability, death, or an
extremely adverse financial condition) arises the first priority should be to
“circle the wagons” and stabilize the productivity by securing a dentist
capable of covering the practice. Possible sources could be younger dentists
working in other offices in other geographical areas looking to supplement
their income, or seeking out a dentist looking to associate in the practice for
a short while with a longer term goal of ownership (this may not be very
practical as it is a time consumptive process and therefore may not prevent a
decline in productivity). Perhaps even
much more favorably, seek out an experienced dentist who has sold his/her
practice, who still wants to work, and can
cover the existing hours of the practice until a sale can be consummated.
Regarding the retention of experienced staff who are so
valuable to patient relations and maintaining productivity, it is critical to
provide reasonable assurances that a prudent buyer will want to retain staff
and not make immediate changes in personnel or policy.
Next, if there hasn’t been a recent indication or range of
value report of the dental practice done, then have one completed immediately so
that you have some idea of and evidence of the value of the practice and a
reasonable basis for the asking price in a sale situation. This will also
provide a potential buyer with valuable information when he/she is doing their own
due diligence.
Whatever you do – do not close or shut down the dental practice. It
can be costly and difficult. The value of the “goodwill” will plummet at best,
and, in worst case, will disappear altogether.
While the overall goal is to realize the maximum value for
the dental practice in this or any other type of sale situation, one should recognize that the real value of the dental practice (distress
or not) is what a buyer is willing to pay and that the price
and other terms will be a negotiation.
Finally, assemble an experienced, dental - specific team of
advisors who will work for you and advise you solely as your advocate and not
the buyers.
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