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What You Need to Know About Unsolicited Offers for Your Dental Practice

Posted by Kevin Cumbus on Jan 13, 2017 5:24:58 PM

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 Have you ever received an unsolicited call from someone offering to buy your practice? It could have been a friend in the community, a fellow dentist, or a new Dental Service Organization (DSO) that has come to town. What about a piece of direct mail from a company offering 100% of last year’s revenue for your practice? If you own a multi-practice group or DSO, it is likely that you have been contacted by a Private Equity Group or larger DSO looking to buy you out.

Unsolicited offers for dental practices are more common today than ever before. And they are a good thing! Just think, 15 short years ago, no one was calling around, offering to buy dental practices at 100% of last year’s revenue, much less pay 6x earnings before interest, tax, depreciation and amortization (EBITDA) for multiple locations. (Come to think of it, EBITDA was a pretty foreign word in the dental economy 15 years ago). Times have changed and I would argue for the better.

If you receive an unsolicited offer to buy your practice, take the call! Just be sure to ask the following questions:

How did you get my information?

What attracted you to my practice?

Can I get your offer in writing?

Can you provide a link to your company website and a list of referrals?

Once you have this information, you have something to consider. If you are considering a sale after the call, contact a reputable broker or M&A Advisor for feedback. If the offer sounds good, why not go through a Marketed Process with that broker to ensure that you find the best possible buyer for your business?

A Marketed Process is a systematic approach to sharing your practice opportunity with as many purchasing candidates as possible in the shortest period of time. With some unsolicited offers, time is of the essence, so be sure you choose a broker that can work fast and get your practice in front of as many potential purchasers as possible.

At TUSK, we work with our clients to ensure our Sellers (Groups and Solo) understand the differences of each offer. The highest bid is not always the best offer.

Have you received an unsolicited offer and would like help taking the next step? Learn more.

Tags: Dental Practice Brokerage

TUSK Partners

We help you START, GROW and SELL your Group Dental Practice or DSO.

TUSK provides Industry-Leading Resources to Group Dental Practices and DSOs, such as:

  • Full Day Deep Dive
  • "2nd Stage" Financing
  • Modular & Strategic Consulting Services
  • Exit Strategy

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