Why do brokers ask for so much detail?

Why selling a practice requires so much more than just the financials. 

As a broker to sell medical practices, our first job is to answer questions that the potential buyer will ask. A DSO’s due diligence includes measuring the risk associated with your practice. A good broker seeks to proactively offer a complete picture of the practice, in an effort to establish trust and credibility with the buyer early on in the process.

In this article, we explore three ways in which the lengthy preparatory work is worth it. Being able to present a holistic view of a successful practice significantly pays off in the end. 

1. We need to know you to represent you.

What we want: This is your first time selling a practice. On the other hand, brokers walk practitioners through this process as their daily work. We are familiar with the cadence of selling within the industry, but what we do not know at first is your practice, and this is the most important part of our work. We set out to learn the nuances — both in strengths and weaknesses — of your practice so that we can best help you. In other words, we need to know your work in order to help sell your work to the right buyer. 

How to get there: A seller looks to their broker to offer the best way to sell a medical or dental practice. We know from experience that offering more information is exponentially better than appearing as if you are withholding or unaware. Do the tedious work of gathering and organizing information from all aspects of your practice up front, and we will be able to represent you better to potential buyers. 

2. Better preparation brings better buyers. 

What we want: The seller comes to the dental business broker saying, “I’m selling my dental practice. Now, how do I do that?” Our job is to prepare you for the sale, from beginning to end. With years of data reflecting what buyers cumulatively want to know, our process is refined and comprehensive, and we ask for the information just once at the beginning. 

How to get there: Presenting a detailed package to corporate buyers sets you apart from others who have not gathered materials in the same way. Feedback from DSOs have affirmed that a robust and comprehensive first impression builds credibility from the start. Representing you as a seller, we have experience telling us that you will generate a bigger sale if you are educated and equipped.

3. We value your time. 

What we want: We want to be proactive and not reactive, because we know that the initial tedium saves you time in the end. When sellers and their brokers anticipate the needs of the buyers, all those involved are more likely to escape negative surprises and setbacks along the way. 

How to get there: Brokers are able to have a long view of the sale process because our job bears witness to a multitude of experiences. We are familiar with the highs, lows, and indicators of where we are in the sale and how much longer we have to go. Trust our experience along the way, and know that our interests in finding how to sell a dental practice quickly and efficiently are aligned.

Summary

When working with us, our data request list (DRL) may seem overwhelming, but know that it is refined. Over the years, our experience shows us that asking for all the information early makes the overall process less piecemeal, and clears the way for the best results possible. 

Morgan Burrell

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