FAQs

1. How are you able to equally represent all parties in a Dental Practice Transition? 

A Transition is ultimately about creating a successful continuum strategy for a practice. We work to create a win-win situation between owners and buyers in order to achieve long term practice success. Our advisors have a thorough background in practice management, financial planning, tax and business consulting. By thoroughly understanding all the dynamics of a practice transition we are able to prepare a plan that meets both buyers and seller’s goals and objectives. 

 

2. What is a Practice Transition?

Whether It is a 50% partnership or a 100% buyout, it is about doctors working together to create a continuum strategy for the practice that benefits the doctors, the staff, and the patients. It is “the process of transferring goodwill and earning power of an existing practice owner to a future owner, in exchange for some amount of value”. Transitions come in all different shapes and sizes and Mercer Transitions has successfully guided thousands of clients through the entire process by having a customized approach for each individual practice. 

 

3. How do I know if I am ready for a Practice Transition?

There is no easy answer to this question, but typically there are 3 areas of readiness we will help you explore and understand: 

  1.  Financial Readiness: Understanding your personal and practice economics helps define your ultimate goals and timeline for a transition. 
  2. Mind Readiness: Are you ready to share your practice; your staff; your patients? Are you excited about collaboration and sharing responsibilities; or terrified to give up control!
  3. Practice Readiness: what can your practice support; how can we amplify practice systems to keep an associate scheduled properly; should an associate start part time or full time. It is a combination of all 3 of these areas that will define if you are ready to begin a transition now or in some cases what needs to be done to prepare for one in the future. Contact us today at 800.444.6162 or email us at practicetransitions@pattersondental.com. We will examine your practice dynamics and personal situation to determine your level of transition-readiness and the ideal starting point for your transition. 

 

3. How do we value a dental practice?

There are numerous methods to value a practice. Many of you have probably heard that a practice is worth X% of the average of the last 3 years collections or some similar type of practice multiple. These are rules of thumb that are often thrown out by dental practice brokers who use these standards as a quick and easy way to place a purchase price on a practice; without truly understanding why and how the particular dental practice produces profit. While it may sound a little strange at first, buyers don’t really care what the practice you are thinking about buying (whether as a partner or a 100% purchase) did last year. They care about what it is going to do once they purchase it. They care about what the capital investments will be, future cash flow and the overall potential of the practice. Just like any business that you see traded on the stock exchange, the value of a dental practice has a direct correlation to its expected future cash flows. All our valuations are conducted by an Accredited Senior Appraiser (ASA) with the American Society of Appraisers and the practice is typically valued in the early stage of a transition so that once a commitment is made, an associate is not paying for the practice value they help create. By understanding what makes a successful practice transition we also ensure you receive the fairest value possible as ultimately transitions will increase the value of a practice.

 

4. As a Practice Owner how do I get started?

First and foremost it is important to understand your goals and vision for a transition and whether or not your situation can support this. This is best accomplished through an in depth consultation with one of our transition consultants who can be reached at 800.444.6162 or practicetransitions@pattersondental.com. We will examine your practice dynamics and personal situation to determine your level of transition-readiness and the ideal starting point for your transition. 

 

5. How does Mercer Transitions support me through the process?

Our service is tailored to your individual situation. Many come to us after already working with an associate and ready to start the planning process. Others are exploring their options and need support locating and bringing on an associate. In this case we will help you with the search process and when the time comes help you with the interviewing process as well. We can tailor our approach to your individual needs and level of support desired.

 

8. Am I obligated to the practice transition right away?

No; unless otherwise indicated. We believe strongly in the benefit of working together initially with no long term obligation. Both parties should have the intent towards a transition, but it will only move forward when both parties are ready. This timeframe will vary by client and situation, but typically the parties will work together for approximately 6-12 months before commencing the full transition planning. 

 

9. Why is a practice transition better than just brokering my practice?

It really depends on your situation and some owners have no choice other than to just broker their practice and be done. For many though, a well-planned transition allows owners to either grow their practice while obtaining more freedom, or to exit ownership on their terms. And ultimately transitions allow a practice owner to best take care of their staff and patients. Dentists have the ability to control how they phase out of ownership and their professional career more than just about any profession. In most cases transitions allow the practice to remain vibrant and growing and allow the selling dentist to continuing working at the practice after the sale, should they desire to. This can be a powerful way to phase out of your profession on your terms by fully leveraging what you have worked so hard to build over the years; your practice. The rewards can be substantial, both professionally and personally. 

 

10. Fees

For our Transitions, we charge a flat fee, paid usually by the owner dentist, It is dependent upon the goals and basic structure of the transition. Because we represent both parties many times an associate will pay back the owner doctor for half of the transitions fees upon successful execution of the transition plan. This way it is clear we represent the associate equally to the owner doctor.

 

11. Do I need my own representation?

Yes. While we strive to put together a transition that equally benefits all parties we always recommend you have your individual advisors such as an attorney and CPA to assist you with the process. We work to create a team of professionals working together on your behalf with Mercer Transitions acting as the quarterback to ensure the process proceeds as smoothly as possible.

 

12. Are you going to list my contact information on the website?

No. Your contact information is confidential.

 

13. If I list with you, will you be selling my contact information info to other sources?

No