Get Ready to Sell!

It takes a lot of information to sell a dental practice. You have to have 3 years of tax returns, at least one year of bank statements and profit and loss statements at a minimum. Most banks and buyers also want computer reports showing demographics and procedures. The more information you have to provide to a buyer and bank, the more you can sell your practice for. If you own more than one practice, you need to have separate bank accounts and tax schedules for both. If you don't, the banks will be suspect of your stated revenue. The difference between a seller selling on his/her own versus an experienced, ethical broker can be as much as 30%! Reno Iannini, Broker at First Choice Practice Sales has helped hundred of dentists maximize their selling dollars. It takes PLANNING to maximize your final sales price. When you are thinking about selling, it is time to talk to us so we can start the process of helping you get the highest price for your practice. Call us today, 949-548-4559 or see us online at www.firstchoicedds.com.

Cash is tricky.

Everyone loves cash. I do. You do. (My kids do!). The only people who hate it are the IRS. Why? It's tough to track! Buyers and sellers both have to be extra careful in a transaction when it comes to cash. Buyers have to make sure that cash patients and charts are "real". Sellers have to make sure that ALL of their income is able to be documented. Either by bank deposits or signed receipt books. What happens if you can't verify the cash receipts? Typically, banks will not lend on that portion of the value if it is significant and buyers will renegotiate value if they feel the cash payments cannot be proven up properly. A seller that collects $400,000 but reports $100,000 on the tax return had best have a bank account that shows most of the deposits. Because guess what! If you can't, the sales price will be based on the $100,000 by the banks! Sellers, please call our Broker, Reno Iannini to find out how to maximize your practice value and check out our website at www.firstchoicedds.com for all of our listings!
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Due diligence is YOUR diligence.

Due Diligence is a term used for a number of concepts involving either the performance of an investigation of a business or person, or the performance of an act with a certain standard of care. It can be a legal obligation, but the term will more commonly apply to voluntary investigations. A common example of due diligence in various industries is the process through which a potential acquirer evaluates a target company or its assets for acquisition. So says the dictionary. What does it mean for buyers and sellers? YOU HAVE TO PAY ATTENTION! When buying a business it is of the utmost importance to verify charts and cash inflow and outflow. You should have INDEPENDENT advisors assisting you who have NO FINANCIAL GAIN if you buy the practice. When we assist buyers and sellers in the sale of a dental practice, we have many recommendations for attorneys, accountants and dental consultants who will provide independent opinions about what is being sold. We want buyers to be assured that they are getting fair value for their money and piece of mind going forward from day one. Sellers are secure in the fact that when ownership and operations are transferred, there will be no issues after the fact. This is the process that our Broker, Reno Iannini has enforced for over 20 years and why we are the best at Dental Practice Sales! Check us out at www.firstchoicedds.com.

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Carry What?

Buyers are always surprised when we say "seller may carry". Given the retrenchment of the lenders in the past year with their lending policies, it has been very helpful for sellers to carry a small note for 1 to 3 years to make up the difference in what the banks will finance. This is a "win/win" for sellers, buyers and lenders. Buyers get the financial help in acquiring the practice they want, sellers get the benefit of having their practice sold and a better price and banks win because both parties have "skin in the game" so to speak. If a seller is willing to carry back a note it sends a signal to the bank that the seller has great faith in the practice AND has not been dishonest in anyway as they need the buyer to be successful in order to get all their money. This is just another creative way we help sellers and buyers achieve their goals! Questions about this or anything else? Give me a call! Check out all our listings at www.firstchoicedds.com.

Time to Change!

We like to help dentists sell and purchase dental practices. The industry in general has been geared to keep everyone in the dark until the time comes to buy a practice. Our goal at First Choice Practice Sales, www.firstchoicedds.com, is to educate both buyers and sellers about all aspects of a practice purchase. We will be posting interesting stories, helpful tips and advice as well as opportunities to learn. We have an excellent source of information to share with you. Our Broker, Reno Iannini, has assisted over 1,000 dentists buy and sell their practices over the past 20 years. Please comment on what you would like to see us talk about!