Dental brokers are notorious for suggesting your practice is worth a lot more than it is. And why is that the case? The answer is as simple as you can imagine. They want your business. When dental brokers conduct their practice valuation, they have a pretty good idea of how much your practice is worth. But they won’t give you that number. They are going to give you a much higher number. Why? So, when you compare practice brokers, you (feel) you are getting a better deal with the higher valuation. However, nothing can be further from the truth.
When your practice is on the market for 52 weeks without a single interested buyer, the truth becomes crystal clear. You should never be afraid to sell your practice at fair market value. Because if the price is such a good deal, you will receive multiple offers. In which case, it will only drive up the price of your practice. So, which would you rather have… no prospective buyers but a listing price that excites you? Or multiple buyers bidding against one another? Here at 3 Percent Dental, we neither overprice nor underprice your practice. Rather, we price it (right) to get it sold quickly.
It is the oldest trick in the book but, unfortunately, dentists fall for it all the time. Be very wary of brokers who say, “I have a buyer looking in your neighborhood.” (or) “I already have a buyer who expressed interest in your practice.” Then when you sign by the dotted line, and the broker cannot come up with a buyer, you’ll hear something like, “Unfortunately, the buyer I had in mind just purchased another practice.” Again, please do not be fooled by practice brokers who suggest a high valuation for your practice or who claim they have a buyer ready to purchase your practice. It is nothing but a ruse to get you to sign by the dotted line.
Here at 3 Percent Dental, our practice valuation is always spot-on and here is why… Dentists trust our brokerage firm because, after we sell a practice, the bank does their own independent practice valuation before authorizing a loan for the buyer. And guess what? The bank’s valuation is almost always in line with our brokerage firm’s valuation. That means the buyer gets approved for the loan and (both) the buyer and seller are assured they received an honest assessment for their investment.
What happens when the bank’s valuation differs from the broker’s valuation? It means the buyer will not be approved for the loan and the retainer you gave your attorney to commence with the closing will not be refunded. It further concludes that the broker who gave you a high valuation for your practice was just stringing you along to get you to sign by the dotted line. Look… you’ve worked hard to build a solid practice. Please don’t let a greedy broker ruin everything for you. Let our team of highly experienced dental brokers sell your practice at a fair price and get your practice sold fast!