Bigger is not always better when it comes to owning a dental practice. My good friend Dan is a very successful dentist. He owns 5 offices scattered throughout the suburbs of a major city. His goal was to accumulate a dozen offices.
Just one problem: finding quality associates. On top of the constant hiring and search for quality associates, he had somehow taken on the HR role for over 34 staff and employees. Putting out “fires” everyday and dealing with staff issues became a burden. He was not able to sit in the chair and produce at the level he was used to because his time was constantly being demanded elsewhere. Dan decided he had enough. My client just wanted to come to work, do the procedures he enjoyed on the patients he liked, earn a good paycheck and go home. Dan decided he was going to sell all five of his dental offices to the right buyer.
Dan tried unsuccessfully for over two years to sell his dental office. He dealt with a few corporate buyers, one of which changed the terms on him at the last minute. He also tried working with a couple of dentists who were unable to acquire the funds he was asking for. After two years he gave up the search for a buyer and settled back into his HR role.
I met Dan in dental school and I sold him his first practice right after graduation. His nickname in dental school was “Billion Dollar Dan”. He had big dreams to say the least. When I called Dan to catch up and see how the family was, he told me my timing was excellent. I worked together with Dan to find the right buyer. Once I had a clear picture of his finances and practice potential, I approached two very large and credible groups looking to purchase. I sold his dental practice for 110% of collections in 180 days. He is obligated to work for three years, but with the ability to produce over $10,000 a day again and alot of new money in his bank account, he will likely stay for many years to come. He is a very happy to say the least.