When Dr. G approached Practice Transitions Group about selling her Dallas-Fort Worth area practice, she was ready to make a change. After years of building the practice into a multi-million dollar operation, she wanted to focus on a new venture in a different part of the Metroplex.
The Challenge: Messy Books Threatening Sale Potential
The practice had strong fundamentals:
- Historical production of $2MM annually
- Recent investments in equipment and marketing for expanded services
- Prime suburban location
- Solid core staff
However, significant financial reporting challenges threatened to derail a successful sale:
- Inconsistent bookkeeping practices
- Multiple parties handling accounting
- Revenue tracking and allocation issues
- Complex accounts receivable situation
- Credentialing complications
The PTG Approach
Rather than sugar-coating the situation, PTG:
- Conducted thorough financial analysis to understand the true picture
- Provided clear documentation of issues and opportunities for buyers
- Emphasized practice strengths and growth potential
- Maintained strong communication with all parties
- Leveraged market expertise to find qualified buyers
“She was very appreciative of anybody helping her,” noted PTG’s transaction support team. “She knew there were issues and wasn’t denying it.”
The Result: Exceeding Price Expectations
Despite initial concerns that messy books would severely limit the sale price, PTG:
- Generated multiple interested buyers
- Negotiated sale price greater than she or PTG expected
- Structured favorable AR terms for the seller
- Completed the transaction in approximately 4 months from listing
- Achieved a smooth closing process
Key Takeaways
This case demonstrates how practices with strong fundamentals can achieve successful transitions even when facing operational challenges. Key success factors included:
- Transparent Communication: Being upfront about challenges while highlighting opportunities
- Strong Location: Prime suburban setting attracted qualified buyers
- Growth Potential: Recent investments in expanded services created future upside
- Expert Navigation: PTG’s experience handling complex transitions and messy bookkeeping
- Team Approach: Coordination between PTG’s transaction team and third-party advisors
The buyers – a husband and wife dental team – saw the practice’s potential despite the challenges. They have already expressed interest in growing through future acquisitions with PTG’s help.