In Arizona, dental professionals choose to sell their practice for a variety of reasons. The most common reasons are relocation or retirement. The dental professional needs to assess certain factors when approaching this sale. The following are FAQs about the transition process and other factors related to a dental practice sale in Arizona.
Will the Existing Owner Pay any Balances after the Sale?
During most transactions, the full balance of the listing price is transferred to the owner at closing. They won’t face any delays in receiving the funds, and they can pay off any outstanding balances immediately. However, if the existing owner owes any outstanding balance to their lender after the sale, they must pay it at closing. The sale provides the buyer with full ownership of the property. The existing owner cannot provide full ownership if there is an existing lien against the property.
What Factors Increase the Value of the Practice?
The patient roster and the practice’s earning capacity each year affect its value. Buyers don’t want a dental practice that doesn’t generate an income. The existing owner must take steps to increase their patient roster before they place the property on the market. A higher volume of patients adds more value to the property.
Is It Better to Sale or Acquire a Partner?
This depends on the existing owner’s current financial status. The sale of the practice offers them a dissolution for any existing debts. However, if they cannot afford to relocate or pay off any additional balances owed for the property, a partner may provide them with more benefits.
What Should the Existing Owner Do If They are Retiring After the Sale?
The first step for retiring dentists is to provide information to their patients about the new dentist. They provide encouragement to their patients to choose the new dentist. They paint them in a positive light. The existing dentist gained their patients through loyal services. It is this loyalty that helps patients transition easily.
In Arizona, dental practices generate their earnings based on their patient roster. When selling, the dentist needs to increase the roster and secure more patients for the new owner. Dentists who are ready to start a Dental Practice Sale in Arizona visit WesternPracticeSales.com for more info.