The American Dental Association laid out eight steps that go into selling a dental practice.
1. Evaluate recommend matches
The ADA can help find matches of dentists who are interested in buying a practice and provides recommendations based on selected criteria.
2. Screening call
Once the selling dentist finds a potential candidate, they should set up an introductory phone call to see if it makes sense to continue forward with the process.
3. Nondisclosure agreement
The selling dentist can request a signed nondisclosure agreement from the potential buyer to prevent either party from discussing any details about a potential purchase with those not involved in the final decision.
4. Evaluating the practice
The potential buyer will look at the finances and operations of the practice to determine whether or not they would like to make an offer.
5. Letter of intent
The letter of intent is important and sets up the rest of the selling/buying process.
6. Due diligence
This 60 to 90 day phase involves the buyer asking the seller for relevant information about the practice and is similar to a home inspection when buying a house.
7. Asset purchase agreement
The next step is drafting the final asset purchase agreement. It is important to create a strong letter of intent and stay in contact with the buyer throughout the process.
8. Closing
Once the asset purchase agreement is agreed to by both the seller and buyer, the final documents will be signed, the keys to the practice will be turned over to the buyer and the process is complete.