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 "Selling a Practice - FAQ's" by ADS Florida, Sept 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.
How long will it take to sell my practice from the time I list?
A. The old adage, “Location, location, location” does have an impact on a sale/transition. In a good area, the transaction can happen in as few as 6-12 weeks from the time the valuation is completed. In a rural area or one that is in less demand it can typically take longer. In that type of situation it is realistic to assume it could be 2-5 years---if indeed it does sell. However, the length of time depends not only on the practice location but also on many other variables.
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: 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 thumb 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. When ADS lists my practice for sale, how will it be marketed?
A. ADS Florida has the widest marketing reach of any broker in the state of Florida. Rest assured that by listing with us, your practice will be receiving exposure to the maximum amount of potential purchasers possible.
In addition to ADSflorida.com and the ADS national websites (ADStransitions.com and dentalsales.com), we have an exclusive relationship with Dental Economics to publish all of our listings on a monthly basis. Beyond Dental Economics, our newsletter is mailed to every licensensed Florida dentist (approximately 11,000 practicing in and out of the state), with the corresponding electronic version also distributed to thousands. We also advertise in publications for and are long-time supporters and sponsors of the FDA and its regional and local constituent societies.
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 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: Will I have to carry a note in the sale of my practice?
A: In nearly all cases it is possible for the buyer to secure 100% financing so you will be paid in cash at closing.
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. How can I make my practice more valuable?
A. There are lots of things that can be done to make a practice more valuable, some aesthetic, some procedural and some financial. If you're considering selling your practice in the very near term (within two to three years), be sure that your office is up-to-date with its internal furnishings. While you may not realize the return to make an investment in brand new dental equipment worthwhile, ensuring that flooring, wall paint and other accents are mostly current will go a long way in the sale of your practice.
Some procedural and nearly all financial modifications to increase value may necessitate longer range planning for the changes to provide a return (usually they need to be implemented three to five years out). That said, these changes can prove much more important in overall practice value and should not be overlooked. It's never too early to start thinking about increasing your practice's value.
Q: Does my dental practice need to be a certain size before I consider hiring an associate?
A: The higher your gross production and the more patients you have, the better candidate you become to hire an associate. If you’re lacking patients, initially you’ll be subsidizing the associate. Your personal income will likely suffer.
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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