SELLING A PRACTICE
Are you planning to sell your dental practice? You only have one chance to sell, so you need the right people to ensure you get the best deal and that your patients and employees are left in good hands. DMC’s extensive experience in selling dental practices has given us the expertise to ensure that you will achieve your goals for the sale, allowing you to move forward with peace of mind.
How we help
By immersing ourselves in the dental community since 2010, we truly understand the unique legal and business requirements your industry presents, and we can offer specific strategies and tools to help you take you and your practice further. We have reinvented professional services within the dental industry through fixed-rate services. We charge fixed legal and marketing fees based on your specific requirements. There’s no hourly billing. We take a small retainer up front and we only get paid when we sell. On average, you’ll save about 50% of what you would have otherwise paid a real estate salesperson and a lawyer working with them, which is the traditional approach.
Why do I need a lawyer?
Selling your dental practice is a serious matter. Most often, the proceeds from the sale are a big part of your retirement plan, which means you have to get it right because your future and financial health are depending on it. You need someone that understands the sale process, can guide you through it, and will ensure that your rights and interests are always protected. A lawyer knows what is required, such as negotiating and finalizing all transaction documents, complying with due diligence, transferring the premises lease, and managing any unexpected issues that arise. At DMC, our lawyers have been helping dentists buy and sell practices since 2010 and have seen every type of transaction challenge and success allowing us to effectively advise you on your options when faced with a tough choice and how to maximize your results. Further, we negotiate hard to make sure that your rights are protected and your interests are promoted throughout the process.
Engaging DMC when you first consider selling your practice, which can even be a few years prior to actually selling, can help preserve or increase the value of your practice. As lawyers, we can help you incorporate a professional corporation or purify an existing corporation to take advantage of all possible tax-saving opportunities, transition your staff to written contracts and limit the liability a purchaser won’t want to assume, plus set up your transaction in a way that maximizes your return and minimizes your costs and risks. Furthermore with our unique fixed rate quotes, you’ll know the exact price for the transaction and you won’t have to watch the clock when dealing with us.
Should I list my practice when selling?
Yes. Listing your practice gives you access to a wide variety of potential buyers, allows you to sell on your terms, and offers you the luxury of choosing the right person to associate with after the sale. When you sell with DMC, we can advertise your practice to a wide range of prospective purchasers and professionals who know prospective purchasers (e.g. bankers, accountants, consultants, insurance agents, etc.). Through our website DentalPlace.ca, which is only available to a registered Ontario dentist or a professional advisor to dentists whom we have vetted, we can list your practice without the worry of your employees coming across the listing. We can also discreetly advertise your practice (without disclosing your name or address) through our bi-weekly emails, at trade shows, in dental trade publications, and through our network within the dental industry. You never have to worry about being inundated with questions from prospective purchasers that you don’t have time to deal with because DMC evaluates prospective purchasers to make sure they are serious about purchasing your practice and fit the requirements you have set out.
What does selling my practice entail?
You only have one opportunity to sell your dental practice and secure a smooth transition for yourself, your team and your patients. There are many steps involved, and some practice sales require more than others based on your individual needs and selling choices. Generally, the process includes:
1. Considering your options
- When do you want to sell?
- Will your sale be a share sale, an asset sale or a hybrid?
- Will you stay as an associate, office manager, or consultant after the deal is complete? If so, for how long and on what terms?
- Will you sell the property (if you own it) along with the practice or keep the property and become the purchaser’s landlord?
2. Preparing your practice for sale
- Are you incorporated to take advantage of the lifetime capital gains exemption? Do you qualify?
- Will you be terminating employees, or will the purchaser be hiring all of them?
- Is amending the lease required to allow for a sale or better the existing lease terms to make your practice more attractive?
- Cleaning up your books and records, which the purchaser and their advisors will be looking through as part of diligence.
- Getting an appraisal of your dental practice.
3. Marketing your practice
- It can be tricky to market your practice while keeping your sale confidential. DMC has experience marketing your practice as discreetly as possible while still reaching out to thousands of dentists to help you find the ideal buyer. Our marketing process includes
- not disclosing any identifying information until AFTER the prospective buyer has signed a confidentiality agreement
- sending eBlasts to thousands of dentists across Ontario
- running an open house on a Sunday when the office is closed
- reaching out to our dentist clients or other dental professionals who may be interested (or know someone who is)
4. Finalizing the sale of your practice
- This is all the legal and financial work necessary to close the transaction and manage any unexpected matters which may arise during the sale. This work includes
- negotiating and finalizing a Letter of Intent, Agreement of Purchase and Sale and all closing documents
- complying with purchaser’s due diligence requests
- transferring the premises lease
- formally closing the transaction
DMC can manage the entire sale process for you, from preparation to close. We know the process and the industry players. We have the background and the tools to help you set up your practice to appeal to purchasers and get you the best deal possible. With DMC on your team from the beginning, you have lawyers who are dental industry insiders committed to your goals, who will ensure your rights are protected, and your interests are promoted at every stage.
What do our clients say?
“Working with Michael Carabash as my legal counsel was a great experience. He represented me during the sale of one of my dental practices. The sale went through very smoothly, thanks to Michael.”Dr. J. Y.DDM
“I engaged Michael Carabash and DMC LLP to handle the sale of my dental practice. I have to say I was extremely pleased with their service from start to finish including handling some unusually difficult issues. Michael was extremely responsive and hands-on and I can truly recommend him and DMC LLP. I would not hesitate to use their services as their knowledge in dental field is quite extensive.”Dr. Z.DDS
“Just a quick note of gratitude to David,Michael, and their entire team. This past June I ended 42 years of dentistry when DMC oversaw the sale of my practice. David and Michael ‘s winning personalities, hands on mentoring, and infinite attention to detail made a potentially stressful situation into a pleasant and dare I say seamless event.”Dr. N.DDS
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