1) Introduction
In 2014, Dr. B founded a pediatric dental practice in Cypress, Texas, which quickly earned a reputation as one of the most prestigious offices in the region for children’s dental care. Thomas Allen who assisted Dr. B in establishing her practice via Practice Real Estate Group (PRG), understood her dedication to patient care. As Dr. B’s practice thrived, her commitment to her patients fueled its growth and success.
2) Challenge
Recognizing the importance of balancing her professional and personal life, in 2021, Dr. B began considering the idea of selling, After conducting high-level research and exploring transitions options, she knew she needed to understand her practice’s potential value. Simultaneously, a marketing flyer from Practice Transitions Group (PTG), led her to reconnect with Thomas.
3) Our Approach
With basic financials and practice management reports, Thomas began analyzing the data. He was impressed by Dr. B’s performance metrics, which revealed that her practice was exceptionally run. Thomas, known for his genuine approach and no-pressure attitude, gave the doctor valuable insights and an initial estimate of her practice’s value.
4) Road Blocks
Recognizing that working together would be more than just a practice sale but a continued partnership with a long-time client PTG curated a marketing package over the next six weeks, ultimately attracting multiple interested parties. After careful consideration, three strong buyers emerged. Dr. B’s streamlined processes and business-savvy approach expedited the process, resulting in an offer within five months.
During the due diligence phase with the buyer, an external accounting firm conducted its own analysis and identified Dr. B’s EBITDA as higher than the previous period. While some might have seen this as a jackpot and taken their word for it, PTG meticulously reviewed the findings for themselves. They discovered errors in payroll that were not identified up until that point. PTG’s diligence uncovered significant discrepancies, ultimately leading to even higher earnings.
5) Solution
With Thomas and PTG, the sale of Dr. B’s practice was meticulously organized and expertly handled. The process, from initial consultation to closing the deal, took approximately six months. Dr. B was impressed by the seamless coordination led by the PTG team throughout the process, even asking, “Do all sales go this way?”
6) Results
Ultimately, Dr. B partnered with a reputable group of doctors who paid a valuation that exceeded her expectations. This provided her with a generous financial reward and allowed her to spend more quality time with her family while continuing to serve her young patients.