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FAQ's

QUESTIONS / ANSWERS

Frequently asked questions

At 4113 Practice Sales Consultants, we’ve guided hundreds of dentists through the intricacies of practice transitions. Knowledge is power, especially when it comes to navigating the complexities of these business changes. Let’s dive into some of the most frequently asked questions about dental practice transitions.

You can expect to pay anywhere from 6%-9% of the overall value of the deal. We will never introduce you to a firm that requires an up-front retainer as well. So, if you never end up selling your practice, no money came out of your pocket during the process! An advisory firm will be able to negotiate at least a 25% higher valuation than any offers you receive on your own so the money put in your pocket will outpace the commissions you owe them anyways.

Nothing! There is no cost if you don’t consolidate with a partner. You should never feel pressure to make a deal.

This varies, but some important factors that will determine the overall offer: your EBITDA figure, how long you are willing to continue to practice post-close, age of doctor, and location of practice.
The process will typically take about 7 months. Some transactions are shorter, and some deals are a bit longer.
These deals are extremely complex and there are only a handful of firms in this space that we would recommend. Recasting your financials, creating a competitive marketplace to drive up the offer, negotiating the deal, and handling the entire Due Diligence/QofE are what an advisory firm will do in the process. Plus, the offer they can get you versus the offer you can get on your own will far outpace the commission that you will owe. But it’s ultimately your decision how you proceed.
The longer you stay and continue to practice, the higher the valuation will be; but the minimum will be 3-5 years.
You will receive a combination of cash at close, compensation for behind the chair collections moving forward, and equity either at the Holding Company level, the practice level, or a combination of both.

The role of a Service Organization is to help with the operational side of the business. Every group is different, but most groups will handle: Payroll, AP, AR, HR, Credentialing, Taxes, Vendor Relations, Insurance Reimbursements, and IT. They should NOT be involved in the clinical side of business.

While there are some companies out there that rebrand their doctors, you should not expect for that to happen. Most Groups are invisible and silent. You will continue to work under your brand, your team, and your strategy moving forward.
A DSO isn’t for everyone. There will always be the traditional doc-to-doc transaction available for you. We can provide insight and steer you in the right direction for this option as well.
Any Questions? Ask Us!!