Keeping the business moving successfully during a transition between one owner to another is in the best interests of both parties as well as the patients.
From the prior owner’s perspective:
- The lower the attrition and the smoother the transition, the more likely you are to head off any buyer’s remorse.
- If the buyer is paying you out over time, you’ll also be much more assured that they will not default on the payments.
- It reduces the likelihood of any kind of legal action coming from the other side.
- A smooth transition also keeps your patients and staff happy. And if you’re like most of us, happy patients and staff mean a happy doctor and a lasting legacy.
From the new owner’s perspective, a smooth transition:
- Minimizes attrition so that worries about paying the bills are minimized.
- Keeps staff happy and secure so that they continue doing an exceptional job for the buyer, just as they did for the seller.
- Assures that, moving forward, you can grow the practice and realize what you hoped to achieve by buying the practice in the first place.
How To Help Transition Patients to the New Practitioner:
When it comes to selling a practice, you will want to make sure that the patient’s move over makes up a big and vital part of both the pre- and after-sale activity.
Here are some suggestions for a smooth transition:
Set expectations for your buyer
We like to say that, getting 70% of patients to move over (30% attrition) is a realistic goal, while we actually expect to have 85+% transition successfully if providers follow our advice (much of which is found below).
Setting an expectation for 30% attrition with your buyer is a good first step, and they may be pleasantly surprised to find that they have a much lower number.
Do everything you can to transition your patients
Let your buyer know that you will do everything you can in order to help reduce attrition and maximize their potential to do well their new practice. Some ideas that we’ve used successfully include:
Telling Patients In Person
Telling Patients By Mail & Email
Put these things into your sales contract
If you plan on going to go to the lengths we suggest above, stipulating that you will do so in your sales contract will further assure your buyer that you care about their success as well as the continued treatment of your patients.
Your contract should also talk about the minimum amount of time per week you plan to spend showing the new buyer your processes and introducing them to your patients, as well as for how long. A month? Two months?
CONTACT PRACTICE ADVISORS
Now that you have read some basic tips and things to consider you are ready to sell your practice. After you have found a place that meets your needs you will still need to make on offer, secure financing, sign the practice sale agreement and lease, and complete the purchase. As you can see a lot of important factors go into this decision. Make sure you are being properly advised. Practice Advisors 360 is the nation’s leading dental advisory company. Contact us today at (844) 360-8360 or visit us online at practiceadvisors360.com