Most dentists are only hitting the Google search bar when they’re about to make their big career move, which could be a quick way to land into a practice that’s not a great fit for you. You may not know where to start looking, but you do know you’re ready to buy your very own dental practice and step into a future filled with new opportunities. But as you embark on this journey, it’s essential to acknowledge one thing… while the search can be thrilling, it can also be time consuming and complex on its own. Before you start walking down the beach with your gold finder and headphones blaring, you can always consider teaming up with a buyer broker since they’ve done this way more times than you have. When you’re looking for that perfect dental practice for sale, here’s some tips on how to navigate the search process.
Picture Your Ideal Practice, Then Go for that Practice
Before you start scrolling online for listings, take a moment to picture your perfect practice. Are you envisioning a cozy four chair office in a picturesque town, or a bustling seven operatory clinic in a major city? While dreaming big is important, grounding those dreams in practical terms will help direct your search. The one’s who get lost the most are the ones looking for anything and everything.
• Location Preferences: Are you looking for a high energy urban spot, a peaceful suburb, or a community centric rural town? Seller brokers are going to send you all their listings because they typically don’t care about your preference. That’s why you need to stay strong with what you actually want.
• Size and Scope: Do you want an intimate practice where you know each patient by name, or a larger operation with a steady, high volume? One of my favorites is the small practice that just needs a few changes to operations and looks to be turned into a larger practice. That one also requires less risk with the amount of debt you’ll be taking on.
Cast a Wide Net, But Don’t Get Lost at Sea
Finding your future practice isn’t as simple as typing “dental practice for sale” into a search bar. To discover the right match, you need to explore multiple channels.
• Dental Brokers: There’s certain brokers in each state that have most of the listings. Unfortunately some of these brokers are people who run through buyers, so sometimes its best to stay away from those types of deals. Your market will know which brokers those are. Having a buyer broker can connect you with any listing and leverage their insider knowledge to help you focus on the best opportunities. The amount they charge will be saved by you 10x between actual money and mental stability.
• Network Wisely: Attend dental association meetings, talk to colleagues, and tap into your professional network. Word of mouth tips often lead to opportunities that aren’t publicly listed. You’d be shocked at how many deals actually don’t even go to a listing type market. Having a buyer broker in this situation can help the deal from falling apart as well as making sure its valued appropriately.
• Online Marketplaces: While specialized sites are a great resource, they’re just one piece of the puzzle. Use filters to refine your search and check multiple platforms. Go where you know dentists hang out online, there will be off market practices available.
If Those Don’t Work, Send Out Letters to Potential Sellers
Sometimes the perfect practice isn’t actively on the market but is quietly waiting for the right opportunity. Reaching out directly to existing practices can be a game changer. No waiting and no competition. Throw in a buyer broker you’re paying, and the seller will be even more likely to agree.
• Craft a Personalized Letter: Introduce yourself as a motivated buyer and express genuine interest in acquiring a practice. Highlight your background, passion for dentistry, and what you’re looking for.
• Show Respect for Their Legacy: Many dentists nearing retirement may be considering selling but haven’t formally listed their practice. Show that you value what they’ve built and are interested in continuing their patient focused care.
• Direct Response Benefits: Even if they aren’t looking to sell immediately, your letter can plant the seed for future conversations and make you the first person they contact when they decide to move forward.
Consider the Community as You’ll Be There for Awhile
The location of your practice is as critical as the office itself. Think about the community that comes with it. In fact, I have clients drive by the area before we even put in an offer because it is that big of a deal to like where you’re going to practice.
• Demographic Insights: Research the population in the area. Are you looking at young families, retirees, or a mixed age group? Each demographic impacts your marketing strategies and service offerings.
• Competition Check: Make sure you’re not jumping into a market where dental practices are on every corner. On the flip side, an underserved area could mean untapped potential.
• Accessibility: Your practice should be easy for patients to find and reach. A prime location with parking and visibility can set you up for a smoother start.
Step Inside the Place Before Offering if You Can
Once you’ve found a few promising practices, it’s time for an in person visit. This isn’t just about aesthetics, it’s about feeling out your future professional home.
• Vibe Check: Does the space resonate with you? Can you envision yourself walking those halls day in and day out?
• Observe the Action: If possible, visit during busy hours. Seeing patient flow firsthand will give you a better understanding of how operations run.
• Staff Meet and Greet: If the current owner agrees, say hello to the team. A cohesive staff can be a huge asset as you transition into ownership. Unless they know about the sale, I wouldn’t expect this one to occur though at this point.
Review Initial Financials, But Don’t Overstep Yet
You’re not doing a deep dive into the books just yet, but you need a general sense of what’s going on with the place.
• Revenue Overview: Is the practice growing, steady, or showing signs of decline?
• Overheads and Expenses: Check if these align with industry standards and your budget projections.
• Insurance Mix: Get a preliminary idea of what insurance plans the practice accepts. Always check the Delta Premier status!
Look for Potential Growth Opportunities
The right practice isn’t just a great fit today, it should have room to grow as you’re building your career.
• Services to Expand: Are there services that could be added to attract more patients? If the practice doesn’t currently offer cosmetic dentistry or aligners, for example, could you add those?
• Marketing Potential: Is the practice active online and in the community? If not, there’s potential for growth through better outreach initiatives.
Consider Hiring a Buyer Broker, Seriously. Even If It’s Not Me.
You might be thinking, Why hire a buyer broker when I can do this myself? Here’s why.
• Access to Exclusive Listings: Buyer brokers often have access to practices that are quietly on the market, hidden gems you’d never find solo.
• Professional Evaluation: A buyer broker brings expertise in assessing a practice’s real value, ensuring you don’t overpay or overlook potential deal breakers that will ruin your day later on.
• Negotiation Know How: Navigating the negotiation phase without experience is tricky and a little bonkers to be honest. Buyer brokers are skilled negotiators who know how to work out favorable terms as they live this life every day.
• Guidance Through the Woods: The search process can be overwhelming, especially if you’re balancing it with a full time job… because your bills don’t go on pause during this timeline. A buyer broker handles a lot of the legwork so you can stay focused on your current patients and family.
Be Patient and Smart
This isn’t a decision to rush. Taking your time to find the right practice will pay dividends in the long run. A buyer broker’s help will not only expedite your search but ensure that when you do make an offer, it’s on a practice that’s a perfect match for your goals.
Buying a dental practice is more than just a career move, it’s an investment in your future. By following these strategic steps, reaching out directly to practices, and partnering with a buyer broker, you’ll be equipped to make a confident, informed choice that leads to long term success. The right practice is out there, and with the right guidance, you’re that much closer to finding it. If you read this and thought, I want a buyer broker to help, well you’re in luck because I do this for dentists every day all over the country. Reach out when you’re ready!
Kyle Womeldorff
480-690-5200
info@dentalbroker.com