1) Introduction
Dr. N, an experienced dentist, decided to sell his long-standing dental practice in an up-and-coming neighborhood. Dr. N’s practice flourished for years in the area, which primarily served Medicaid patients. He was motivated to sell as he reached retirement age.
2) Challenge
Dr. N’s practice faced challenges as the area’s demographics evolved with an influx of young families with multiple incomes. The outdated office and Dr. N’s reluctance to keep up with the changing demographics presented obstacles in finding the right buyer. Additionally, Dr. N’s preference to work part-time further narrowed the pool of potential buyers.
3) Our Approach
Thomas Allen and the Practice Transitions Group (PTG) team initially had reservations about Dr. N’s practice, understanding it would not be a straightforward sale. However, recognizing the unique opportunity presented by the prime real estate location in front of a grocery-anchored retail center, they believed there was potential to find the right buyer for Dr. N. The team began the search. Leveraging his network and previous client relationships, Thomas identified a buyer with multiple practices willing to allow Dr. N to continue working part-time.
4) Road Blocks
Dr. N’s outdated office and the quickly shifting neighborhood dynamics provided several potential roadblocks to finding the right buyer. In addition, the team had to balance the desire for a strong sales price with the need for a buyer who would respect Dr. N’s wish to work a few days a week.
5) Solution
Despite initial concerns, the team secured a buyer willing to meet Dr. N’s target price for the practice. The buyer owned multiple practices and it would ultimately be an asset to him if Dr. N continued working part-time. The decision to prioritize terms over the highest offer was crucial, with Dr. N ultimately selecting a buyer he trusted and who guaranteed he could work part-time.
6) Results
Within less than six months, Thomas Allen’s guidance led to the sale of Dr. N’s dental practice. PTG attracted multiple offers for their client, with the final sale matching PTG’s pricing prediction exactly. Dr. N is very satisfied with his sale and feels confident that he opted for the best terms rather than the highest offer.
Dr. N, now free from the responsibilities of daily practice, cherishes his time at his ranch. The successful transition allows him to maintain connections with his profession while enjoying a well-deserved break.