Before hiring a broker for practice transitions or sales, it’s essential to ask a series of critical questions to ensure they are well-qualified and align with your needs.

Start by examining their experience and success rate in handling similar transactions. Inquire about their fee structure and whether it aligns with industry standards. Evaluate their methods for ensuring accurate valuations and their approach to potential conflicts of interest. Assess their commitment to post-sale support and specialization in practice transitions.

Additionally, seek information about their knowledge of current legal and tax issues, the typical timeline for completing transitions, and their overall compensation model.

Finally, request references to confirm their reliability and effectiveness.

These inquiries will help you make an informed decision and choose a broker who can effectively manage the sale or transition of your practice.

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1. How many practice transitions and/or sales have you handled?
Legacy Practice Transitions: Over 1,000.

2. How many years of experience do you have?
Legacy Practice Transitions: Over 100 years combined in dentistry, practice transitions, consulting, and financial planning.

3. How many sales have ended in litigation, arbitration, or professional disputes?
Legacy Practice Transitions: Three arbitrations and fourteen associate buy-in separations, with no arbitration or litigation.

4. How many purchasers have defaulted on their payments?
Legacy Practice Transitions: Five with banks and two with sellers.

5. What is the cost for an evaluation?
Legacy Practice Transitions: $2,995.

6. Is the evaluation fee included in the total fee for selling the practice?
Legacy Practice Transitions: Yes.

7. What are your strengths in providing transition/brokerage services?
Legacy Practice Transitions: Integrity, prompt communication, 20 years of business and finance experience, post-transaction follow-up, transition checklists, staff meetings, and having legal and tax professionals on retainer.

8. Is the evaluation dependent on signing a listing agreement?
Legacy Practice Transitions: No.

9. How do you ensure your evaluations are accurate?
Legacy Practice Transitions: By using proven formulas and tracking past results.

10. Do you see a conflict in evaluating and then listing a practice for sale?
Legacy Practice Transitions: Yes, as some brokers may inflate prices to secure listings, making it harder to justify a fair price to buyers.

11. What post-sale follow-up do you provide?
Legacy Practice Transitions: Monthly follow-up for the first three months, then as needed.

12. Is transitioning your main occupation?
Legacy Practice Transitions: Yes, we focus solely on facilitating practice transitions.

13. How do you ensure your other activities don’t affect service quality?
Legacy Practice Transitions: Our only activities are practice transitions, with all compensation coming from these services.

14. How does your business model benefit me during the transition?
Legacy Practice Transitions: We bring integrity to the process, ensuring a fair, win-win outcome for both parties. 97% of our clients are satisfied with our services.

15. Do you have literature on the transition process?
Legacy Practice Transitions: Yes, we offer booklets for sellers and buyers. Contact us or visit our website at www.ctc-associates.com for more information.

16. How do you ensure compatibility between buyers and sellers?
Legacy Practice Transitions: We use personal needs analyses, personality profiles, and encourage pre-courtship activities to ensure alignment in goals and work styles.

17. Do you have guidelines for selecting clients?
Legacy Practice Transitions: Yes, we review their background, objectives, financials, income needs, and leadership style.

18. What does your evaluation include?
Legacy Practice Transitions: A practice prospectus and a financial analysis report.

19. Does your evaluation support due diligence?
Legacy Practice Transitions: Yes, except for chart audits and a review of the seller’s tax returns, which the buyer should conduct.

20. How do you stay updated on business and tax law changes?
Legacy Practice Transitions: We have an attorney and accountant on retainer and subscribe to relevant publications.

21. How long does it typically take to transition or sell a practice?
Legacy Practice Transitions: Usually 3 to 6 months in desirable areas and up to 12 to 24 months in rural areas.

22. How are you compensated?
Legacy Practice Transitions: We charge 10% of the selling price, reduced for larger practices. The fee is split into $2,500 at evaluation and the remainder at closing. For associate buy-ins, the fee is $2,500 at evaluation, $2,500 when drafting contracts, and $20,000 at closing.

23. What services are included in the fees?
Legacy Practice Transitions: Finding buyers or sellers, securing financing, structuring transactions, drafting contracts, overseeing closings, staff meetings, and providing post-transition support.

24. How successful are buyers after the transition?
Legacy Practice Transitions: Over 90% of buyers meet or exceed the previous year’s production within the first year.

25. Can you provide recent references?
Legacy Practice Transitions: Yes, references available upon request.

Ready to explore the next step in selling your dental practice? Contact us today to schedule a confidential consultation and learn how Legacy Practice Transitions can guide you through the process.