Thinking Of Selling Your Optometry Practice To A Corporate Buyer?

Save Thousands When Selling To A Corporate

At 1st Med Transitions, we know that Selling to a Corporate Buyer without the right expertise and guidance can be a daunting task. There are a number of factors to consider and our Senior Transition Advisors are well aware of the benefits in Selling to a Corporate Buyer and the pitfalls to avoid. As the Corporate Buyer market has grown, so has our relationships with local, regional and national Corporate Buyer and Private Equity firms.

When selling to a Corporate Buyer, you have the potential to gain a much larger enterprise value for your practice than in a traditional doctor-to-doctor transaction. We have seen as much as 125% to 150% of yearly collections. However, it is important to keep in mind that there is more to a sale, than just the sales price. A Corporate Buyer transition will typically require a seller to continue to work at the practice post sale for a pre-determined amount of time. This length of time will also affect how the sales price is disbursed to the seller.

If you have a larger practice, there is a good change you have already received unsolicited offers or been contacted from Corporate Buyer buyers attempting to negotiate with you directly. We understand this can be tempting, but there is a chance that you will be missing out on more favorable deal terms/structure and a higher overall sales price. Partnering with or selling to a Corporate Buyer is an enormous decision for a practice owner and not something you should go at alone. When you sell to a Corporate Buyer with 1st Med, we make sure to walk you through every step of the process.

STEP #1  Sales Consultation

This is the first and most important step in the process. We will discus your goals, objectives and timeline for sale and of course, answer any questions you may have. We will asses your current situation and determine if your practice is a good Corporate Buyer candidate. We'll inform you on what Corporate Buyers are looking for and the different deal structures we are actively seeing in the marketplace.

STEP #2 EBITDA Practice Valuation

If we think you are a good Corporate Buyer transition candidate, your transition advisor will request financial's, practice reports and a practice profile to be provided. We will work with you to determine a current EBITDA valuation as this is the main metric Corporate Buyers use to value your practice.

STEP #3 Corporate Buyer Outreach

We'll package and confidentially present your dental practice in a professional manner to potential Corporate Buyer buyers. Our goal is to maximize the interest and pool of potential buyers for your dental practice. The more competition we can generate, the higher the potential for sale and maximum enterprise value.

STEP #4 Review Offers

One of the most overlooked part of the Dental Practice Sales process is the sales negotiation. We'll assist you in reviewing multiple offers and help determine which is the best fit for you personally and your practice moving forward. Remember, not all offers are created equal and the same goes for Corporate Buyers.

STEP #5 Due Diligence

Once you have determined the best deal structure and culture for your practice, we'll accept the LOI and move into Due Diligence. The difference between a closed transaction and a failed one, can many times comes down to the attention to details. Corporate Buyer Buyers are more sophisticated than independent doctors and the due diligence process is typically more thorough. We will work with the buyer on quality of earnings, detailed practice reports, and sales contract negotiations.

STEP #6 Closing

There are a number of aspects that lead to a successful closing - deal structure, non-competes, escrow, representations and warranties and transitions agreements. We stay on top of every step in the process from the marketing, letter of intent, due-diligence to the purchase & sale agreement and ultimately closing.

If you are considering selling your dental practice to a Corporate Buyer, or just want to get a sense of what a potential Corporate Buyer sale would look like for you and your practice, we would love to discuss further.

To get started, complete our Dental Practice Sales Consultation Form Here and you can schedule a call with one of our Senior Transition Advisors.