Provable Records
Buyers want proof of the income, expenses and profits that the practice has made in the past.

Reasonable Price and Terms
Usually, buyers won't even look at a practice that is not priced competitively.  Sellers who have substantiated facts about why their practice is priced at a certain value have a much better chance of selling it for the valued price than someone who priced the practice that is unfamiliar with the market. Banks, buyers and mortgage companies usually ask "Has the practice been appraised".  If the seller's answer is my CPA or attorney said I should sell for a certain percentage or a specific amount, it simply is the wrong answer and will lead to unnecessary negotiation.  Many times the buyer simply shops CPA's until he finds one that thinks the practice is overvalued.  Most CPA's and attorneys will look at an appraisal of the practice and determine if the appraised method is a fair and consistent method of determining dental practice value.  "Fair market value" is a legal term and carries specific guidelines as to how the fair market value is determined.

Financial Leverage
Southeast Transitions Practice Sales works with all of the top industry lending sources. Most will fund 100% of practice acquisition capital. Smart buyers will want to use financial leverage to maximize their return on investment and income, i.e. use leverage to buy a bigger practice and a better bottom line with the same amount of cash down.

SDI / Seller's Discretionary Income
Discretionary income is perhaps one of the most critical factors in a buyer's decision. How much money will a buyer make from owning this practice? Your Southeast Transitions Practice Sales Agent will work with you to re-cast your financials to reflect the actual SDI from the practice. Lenders often refer to these items as "add backs". They are discretionary expenses that for the new owner and can be added to the practice net income.

Furniture, Fixtures & Equipment
Buyers will want a complete list of your equipment and will inspect it to insure that everything is in good working order.  Lenders want an accurate list and value of the equipment.  This often is the collateral required by cash flow lenders.

Lease
Any buyer will want a good lease (whether your existing lease is assigned or a new lease is written).  The length of the lease is customarily the length of the loan.

Training
Most buyers have not owned your type of practice before and will need a transition in order to run the practice effectively, profitably, and ultimately successful. Many purchasers feel they need to have sellers remain with the practice longer than is necessary.  The seller's role is often to transfer the loyalty of the staff to the new owner

Appearance
Nice looking practices sell first! Buyers deduct large amounts from their offering price for practices that are in less than top shape. Keep your practice neat, clean and in good repair to sell it faster and for a better price.  New equipment purchased 3 years prior to sale is often a good investment for the seller.  They can use the equipment and enhance the speed of the sale.

Covenant not to Compete
Buyers are afraid you may go into competition with them and take all their patients. A written promise not to compete within an appropriate distance or solicit the staff to work for the seller often satisfy the purchaser's concern about losing patients to the seller. This may also provide tax advantages for both buyer and seller.

A Good Reason for Sale
Buyers are always concerned about this. They are afraid you may be selling because of some undisclosed fact which may hurt the practice in the future. Buyers must see a logical reason for sale; without it they will assume the worst!

Time is of the Essence
Buyers are often looking at more than one practice when they make an offer. A buyer's offer can be withdrawn any time until it is accepted and delivered back to the buyer. If you don't respond in a reasonable time, the buyer may lose interest in your practice and move on to another.  Remember you are taking your practice off the market when you sign the letter of intent.

No Surprises
Surprises will scare away any buyer. If we know all the facts up front, almost any problem can be solved or overcome in negotiations. Please be sure that you have told us about any problems, including the following:

• Are you behind in tax payments?
• Are there any problems with the landlord or lease?
• Are there any loans or liens against the business?
• Do you share any reception room furniture or equipment with another dentist?
• Are there equipment leases?
• Are you in compliance with zoning, health and other regulations?
• Is there any litigation pending?