Here are some of our most frequently asked questions and our answers. If you don't find your question on the list or you would like more information or clarification, please contact us and your local representative will be in touch shortly. We look forward to hearing from you.
-- Read "Buying a Practice - FAQ's" by ADS Florida, July 2010 in Dental Town Magazine
If you'd like to ask a question of us, please click here and one of our ADS Florida transition specialists will be happy to respond.
Q: I have read that dental practices are worth 70% of their gross receipts averaged over the past three years. Is that true?
A: While three years of financial information is important to determine the value of an practice, rules of thumbs are simplistic and don’t usually provide the correct value. To find out the true value of a dental office an expert in transitions should be consulted to conduct an evaluation or full appraisal on the practice.
Q: How is ADS Florida different from other brokers in the state?
A: Experience counts. ADS Florida has been operating in the state longer than any other broker and is the only one that has met the stringent standards placed upon members of ADS, nationally. ADS Florida also serves as the exclusive transition specialists for the Pride Institute.
Our four member team provides personalized, experienced, professional service that cannot be found in any other dental practice transitions firm operating in the state. We prescribe to the highest of ethical standards and focus on finding the right transition strategy for each doctor and practice. Our transitions methodology and documentation is among the best in the country - creating win-win-win deals for purchaser, seller and patients alike.
How does ADS Florida rate amongst other transitions specialists? Find out here.
Q: Can you provide an overview of the transitions process?
A: For a general overview of the transitions process, please click here. Please note that every transaction is different and therefore the timing and actual progression towards closing my vary. Many steps, if done incorrectly can adversely affect future steps if not jeopardize the sale so we always suggest consulting with one of our experts to facilitate and guide you through your transition.
Q: What are the demographics of a specific area?
A: Visit our Useful Tools page and you can view demographics by city, county or metro-area in the state of Florida.
Q: Can ADS Florida represent me as a purchaser?
A: Of course! We provide a wide range of services for purchasers whether you are purchasing in a private transaction or with the assistance of another broker. While you may be responsible for the costs of our services, our costs are minor compared to the costs of a poorly evaluated or reviewed practice opportunity.
Q: What is Dual Representation and why doesn't ADS Florida dual represent?
A: Dual Representation is the practice of representing both the seller and purchaser in a brokered transaction. In the State of Florida, this practice is illegal. ADS Florida has never represented both sides in a transaction as we, like the State, feel that it is a conflict of interest.
Q: What is a reasonable Covenant Not to Compete?
A: The area of the Covenant is jurisdictional and can be different for each practice and practice location. The distance for the Restrictive Covenant is usually correlated to the service area of the practice which is where most of the patients live and/or work taking into account many local and regional factors.
Q: Are covenants enforceable?
A: In the state of Florida, Covenant Not to Compete / Restrictive Covenant contracts are enforceable and care should be exercised when drafting them.
Q: Will the staff stay after I purchase the practice?
A: The staff typically is as worried about keeping their job as you are about keeping them. If they leave, they have to start working for a new doctor anyway, so why wouldn't they give you a chance? Click to learn more about staff retention.
Q. Will my patients accept a new dentist?
A. Your patients will accept a new doctor if the introduction and transition are handled the right way. Your endorsement, coupled with staff acceptance and enthusiasm, is the key.
Q. How do you appraise a practice?
A. We utilize four different methods and generate documentation consistent with USPAP (Uniform Standards of Professional Appraisal Practice) standards. All values generated by the multiple methods we use are weighed and considered in order to determine fair market value.
Q. What will my payments be on my loan?
A. Click to view Loan Calculator.
Q. What is ADS and what how is ADS Florida, LLC related?
A. ADS is an alliance of independent dental practice brokers and management consultants which formed as American Dental Sales in 1995. It is a national association of highly qualified, experienced and trusted independent brokers and consultants. Each member operates their own business, covering a portion of the country. Find out more about ADS here.
ADS Florida, LLC is the member representative from Florida. Our local specialists own and operate the company.
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