Selling Your Practice
Selling Your Practice to the pain free dentistry group
Selling Your Practice In Seven Easy, Stress-Free, Hassle-Free Steps
At the Pain Free Dentistry Group- (PFD Group), like you, my team and I have put blood sweat and tears into developing our group of practices. So, I am well aware of the efforts you have made over your dental career to provide the best possible dentistry in your local community. I do not take getting to the point of considering selling lightly. It can be a substantial daunting step.
As a group solely owned by dentists, we can fully appreciate and understand your needs and wishes and any concerns you may have. Including financial, the continuing standard of care, and stability for your existing team. Above all else, we value high-quality dental care and team happiness as the lever that helps our group of practices thrive.
Here are seven easy, stress-free, hassle-free steps if you are thinking of selling your practice, maybe not now, but in the future as part of your exit strategy. The following seven steps have worked for all the practices we have worked with so far and will continue to do so in the future.
Step 1. Informal Suitability Discussion
We understand that the first step in getting the ball rolling may be challenging; however, an informal chat (and a non-disclosure agreement if you wish) is the best way to see if we are the right fit for you and you for us. Furthermore, this opens up options whether you want to immediately stop practicing post-sale or continue and stay on as a partner or associate.
Step 2. Fair And Reasonable Valuation
Primarily, we determine this in many unique ways, whether it merely be a valuation based on calculations and market evidence from our experienced financial team. This valuation process happens by working with your own advisors or via a third party of your choosing. A fair valuation generally involves operating with your accountant to get clarity on the financial position of your business and, for example, using your annual accounts as well as any up to date trading management reports and practice software reporting. During this time, our headache-free valuation process remains confidential.
Don't Just Take Our Word For This...
They actually did what others said they would do but didn’t – they immediately recognised what was unique and working, and took steps to learn from that but also to take the day to day running over in a seamless way, totally freeing me up almost from Day 1. It has been really encouraging to see how the team have developed and been supported under the PFG, and how the business has continued to grow without the stress for that being entirely on my shoulders.
I believe that Mark has a unique vision, certainly shares my values for providing excellent patient care, and as he is a dentist and has an excellent management structure in place, he totally understands how to run a practice based on more than just the numbers but also understanding the importance of the people and the relationships with team and patients for the long term.
Dr Elaine Halley GDC #67791
DGDP(UK) 1995, BDS University of Edinburgh 1992
Step 3. General Agreement
Once we have agreed to the broad basis of the valuations, terms of sale, and your future role within the group, PFD Group solicitors will provide your solicitors with heads of terms and an exclusivity agreement. For instance, this is where the central headline part of our understanding is summarised, allowing solicitors to get started on their involvement. Furthermore, it also makes a binding goodwill agreement to each other that both parties are serious in pursuing the proposed purchase/sale of the practice.
Step 4. Review Of Compliance, Legal, And Accounting
Although this sounds complicated, it isn’t given our experience in multiple practice acquisitions. Depending on whether it is an asset sale or share purchase, we have proprietary protocols set out to make things as simple as possible.
In our experience, we leave the solicitors to do the legal work once we have ultimately agreed in principle what we are each looking achieve as this makes it easier for both parties and prevents the ‘tail wagging the dog’. This active process of clarity and communication allows a smooth transaction while maintaining good relationships. As we spend time together discussing financial statements, regulations, and compliance, most of the information handled within our office and any updates are provided on a weekly or fortnightly basis. You get to decide and in our experience, most principals have left this with a trusted team member or partner.
Step 5. Final Agreement
Once we have full clarity on your practice history, we can work with our solicitors to finalise the terms of the practice purchase. The role of the solicitors is to fulfil our agreement. In our experience, it is well worth both sides instructing an experienced solicitor in practice sales. Ultimately this saves time, stress, and limits unnecessary financial outlay.
Step 6. VIP Support For Your Team
At the PFD Group, we understand you have built strong personal relationships with the team, and it is crucial for us to continue your legacy and maintain your high standing in your community. For example, we typically take the remaining team out for a meal 2-4 weeks before completion. Team building happens once you have informed them of the imminent sale of the practice and to meet TUPE regulations. During this time, we reassure the remaining team and even bring some of our team from our other practices, which describe their personal experience of the process and the efforts PFD Group makes to keep a happy team.
Then each team member conducts a one on one meeting with one of our operations managers. They will have the opportunity to discuss any concerns, including changes that will likely excite them in their future role inside a larger group of practices.
Step 7. Payment To You
Once the solicitors’ agreements are agreed upon, we will finalise a purchase date. Payment is typically a Friday or the last day of the month. During this time, we close the practice for half a day team ‘on-barding with us’ training. This allows our operations team team to transfer accounts and utilities over to the new ownership company and for the remaining team to see the overall vision of their new employer. If you have decided to stop working at the practice, we typically hold a special lunch or dinner to celebrate your exit and to allow the team to thank you for all your hard efforts over the years.
Let’s have an initial exploration of what you are looking to achieve. Leaving your legacy for the PFD Group to continue with and you being comfortable with whom you may be working alongside in the short or long-term.
You’ll be glad to know you will only be involved with 2-3 critical PFD Group team members during the entire stress-free process and with one point of contact should you need further clarity on any points.
At the PFD Group, we believe that to achieve the best and most predictable results; agreements are better to face to face and to minimise solicitor’s involvement until necessary in any deal. Less solicitor involvement allows both sides to reach an agreement on the broader questions. In our experience, this moves both parties forward to complete negotiations while still maintaining good relationships.
Better still, our team is flexible to your requirements and agreement can often be reached within a few weeks and completion around 12-14 weeks by following our proprietary and successful PFD Group transitioning model.
Finally, the PFD Group will demonstrate how we can achieve a WIN-WIN situation exceeding your expectations based on the terms of your departure. How does that sound?
You don’t just have to take our word for it. We can put you in contact with some of the previous principals we have acquired practices from and you can hear from them how they have found it to work with us, whether that be existing to work in the practice or retiring from clinical dentistry immediately post sale.
Any questions or concerns, then please do not hesitate to get in touch.
Here’s to a stress-free experience leaving your legacy intact.
BDS MSc (Restorative) MFGDP (UK) Dip Rest Dent RCS (Eng)
Managing Director and Founder – Pain Free Dentistry Group
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If you are thinking of selling your practice and you would like to know more about how we can help you please contact us today to request a Free Digital Information pack.