How Do Brokers Get Paid?

Defining our middle man’s value at the deal table.

Selling your practice is a milestone moment in your life. You have spent a career building up a healthy and successful practice and are looking for a buyer who will affirm the value of your work.

However, finding the right buyers among the many available options is a specific skill distinct from the skills developed by healthcare practitioners. This is where a healthcare broker comes in. The role of a health care broker is to lead you through this detailed process with efficiency and expertise.

Oftentimes, the value of the representative’s work becomes most clear at the successful close of a sale, which is why brokers are paid at the end of the deal.

We are 100% success-fee based.

It is common to be skeptical of hiring a broker to market your practice when you know the business better than anyone. However, structuring the sale of a dental practice requires a broker’s expertise in negotiation and specialized administration.

The structure of brokerage fees directly corresponds to the success of the deal. This puts the seller and broker on the same team with a common goal. Similar to a real estate deal, we are only paid when the deal closes. Also, we are structured to be paid out of the net of total sales proceeds paid to the seller.

We are confident that we will add value in selling your practice, so it is easy to be transparent about our fees.

The cost of a broker is generally 10% of the net proceeds. This percentage is to account for what we bring with us:

  • Knowledge of health care practitioners
  • Expertise in performing SWOT analyses of your practice
  • An understanding of how buyers will categorize your practice
  • Practicalities of being your front-line for the numerous phone calls, the gathering of copious information for the sale, and other administrative duties
  • Streamlined industry marketing prowess and relationships

Summary

At Practice Transitions Group, we have built up a team of experienced professionals with organized and efficient ways of approaching any sale. We have gained practiced proficiency within the industry. Working with a broker who can direct the process will only bring a welcomed confidence to this significant transition in your career.

Morgan Burrell

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