What to expect when selling a practice
Each practice transition is structured a bit differently, but here are some of the basics about what to expect when selling a practice through ADA Practice Transitions.
Evaluate Recommended Matches
After your profile has been submitted and approved for matching, your ADA Advisor will select candidates that meet the criteria specified in your profile.
You will receive email notifications when a doctor is interested in learning more about your practice.. Review these recommendations on the ‘Match’ page in your profile. If you see one that you would like to evaluate more closely, choose to connect. At that point you will see the dentist’s contact information.
Contact the candidate to schedule a 15 minute introduction phone call. The purpose of the call is to learn a little more about each other and decide whether there is a reason to have a more in depth discussion. Your ADA Advisor can provide insights and tips on an agenda for the call, or key questions and topics to hit upon.
If you agree to have a more in depth discussion regarding the operations of the practice, you may request a signed NDA (non-disclosure agreement). This document simply precludes either of you from discussing any of the details about the potential purchase with anyone who is not directly involved in helping to make the final decision.
Evaluating the Practice
The potential buyer will need to evaluate the finances and operations of the practice to decide whether or not they would like to make an offer. Your ADA Advisor will provide checklists and guidance to ensure you have all the financial, operational and legal information readily available.
Letter of Intent
The next step is the Letter of Intent (LOI). The LOI will set the stage for the rest of the process and should be carefully considered. Your ADA Advisor will provide expert advice and guidance to ensure you are hitting all the pertinent points as you get ready to review the LOI template with your attorney.
This phase typically takes 60-90 days and can be equated to the home inspection when buying a house. During the due diligence process, your ADA Advisor will guide you as you are receiving requests for information from the buyer. This can be a stressful time and your ADA Advisory team will help to ensure things are staying on track.
Asset Purchase Agreement
Next, it is time to draft the final APA (asset purchase agreement). Do not worry, if you have a strong LOI and have been in communication with the buyer throughout the process, the APA will be a piece of cake! Your ADA Advisor will assist you to make sure you have all the documents reviewed by your attorney and accountant before delivering them to the buyer.
Once the APA is accepted by both parties, it is time for the closing. You will generally meet at the finance institution or lawyers office but the closing can occur anywhere. You will be receiving a large sum of money from the buyer and the funds will be dispersed according to the terms outlined in the APA. The final documents will be signed and the keys will be turned over – congratulations! You are now free to move on to the next phase of your career.