» Where Should I Look For Financing?
We work extensively with a number of lenders out there and would be happy to give you a referral. Please realize that there are a variety of lenders out there that offer VERY different rates and terms. Some do real estate; some do not. Do your homework and ask what the interest rates are, what you'll have to come up with out-of-pocket at closing, what prepayment penalties there are, etc.
» When Should I Start Looking For An Office?
At least 6-18 months before you hope to actually start practicing. It may even take years for the right practice to come available if you are limiting yourself to a particular community or geographic area. The latter is especially true if you are a specialist.
» Do Buyers Have To Pay Us?
Only if we are working for a buyer. And that fee is not a commission, but an hourly rate or a flat fee.
» Should I Tell My Staff?
This depends on how you run your office. For individuals who have adopted the team approach and share almost all with their staff, it may make sense to involve them in the process. Most sellers do not however inform the staff until a buyer has been identified and at least a letter or intent or preferably the P&S is signed.
» What Kind Of Transition Works Best?
This is very practice specific. For you to have a longer transition, more than a couple months, there must be the patients to support two dentists, even if you the owner are going to greatly cut back your time, and there must be space to accommodate multiple dentists. Be realistic. We typically recommend a shorter transition time, but again, this changes greatly from office to office.
» How Long Will It Take To Sell My Practice?
Depending on a number of factors, including where the practice is located, the physical size of the practice, and gross earnings of the practice, we generally tell people to plan on listing your practice for 6-18 months. We will give you our honest opinion of how long we think it will take your practice to sell when you contact us.
» Do We Charge A Commission On The Proceeds Of A Building Sale As Well?
Sometimes. Attorney Larkin is currently a licensed real estate broker in the states of New Hampshire and Massachusetts. If a commission is also being charged on the sale of real estate, the amount of the practice commission will be reduced. Be advised that only a real estate broker licensed in your state can charge you a commission on the sale of real estate. Don't be afraid to ask.
» Can I Sell The Building The Practice Is In To The Buyer?
Buyers are often very interested in purchasing the building at the same time they purchase the office because it is often just as easy to pay a mortgage as it is to pay rent. Ultimately, it is a function of the projected practice cash-flow. If purchasing real estate associated with the practice is not immediately feasible, a seller may of course lease the premises to the buyer.
» As A Seller, Do I Have To Take Back A Note Or Should I?
Today industry specific lending institutions are often quite willing to lend 100% of the practice purchase price to buyers, even if they have significant debt. We therefore do not typically suggest to our clients to "take back paper" unless in consultation with their accountant, they feel that there are specific reasons to do so. Depending upon the practice cash-flow, a seller may have to hold paper on real estate associated with the practice.
» How Do We Get Paid?
In practice sales, we get paid a commission by the seller, and typically the commission is 10% of the practice sale price. As accounts receivable are purchased separately, they are usually not subject to the commission. Partnership work and other transition assistance is on an hourly basis or a flat fee and varies according to the complexity of the transition. Practice appraisals are a flat fee and are generally $1,500.00.