For dentists seeking to purchase a practice and wishing to have consultative support, ADS South offers guidance and resources in evaluating and purchasing a practice.
If you are looking at a practice listed by ADS South, these measures will not all be necessary as practices that we represent have a thorough sales prospectus already prepared at no cost to you.
For practices that are for sale by owner or through another practice broker, ADS South can assist you in the following steps.
- Free personal or phone consultation regarding the practice. This is not a definitive analysis and no firm conclusions will be made, but rather to discuss an overview of the pros and cons of the practice.
- A cash flow analysis / valuation / appraisal is the next step in evaluating the practice. This can be accomplished with or without visiting the practice, depending on how important cost is to you. This process provides invaluable insights into the practice cash flow that you can expect. This process, besides providing an estimate of Fair Market Value, will also disclose the financial strengths and weaknesses of the practice and will serve in further analysis, financing, and contractual elements of a purchase.
- If you are satisfied with the practice cash flow and dynamics as revealed in the cash flow analysis, the next step is the negotiation for purchase. In this phase, ADS South helps you make a realistic offer for the purchase of the practice and reach agreements on key deal points before incurring expense for attorneys, contracts, insurance, or financing.
- Once an offer has been extended and accepted with key deal points defined and agreed upon, ADS South will help in creating or evaluating purchase agreements. Our referrals to expert and experienced transition attorneys will create accurate and fair purchase agreements for the closing.
- While agreements are being drafted, ADS South will also be helping apply for the financing for the purchase. ADS South will prepare loan applications and suggest the most appropriate lenders for the individual practice. ADS South will work with lenders to obtain approvals for financing and obtain the most favorable rates and terms
- ADS South will consult with the counsel for the purchaser and seller to assist in the preparation of final documents.
- ADS South will assist at the closing and act as escrow agent for the lender to disburse funds at the closing.
- ADS South will monitor the purchaser’s practice statistics for twelve months following the purchase to ensure that the practice performs according to the projections.
Should the purchaser complete the full purchaser service package, the cost of the ADS South Buyer Services is $9,500. Should you decide that during any step in the process not to pursue the acquisition of the practice, the fee will be pro-rated so that you do not pay for services that you do not use.
While inspecting practices listed by ADS South is the easiest and most cost effective way of learning the most about practice opportunities, ADS South can now assist you in becoming as well-informed as possible in examining practice opportunities from outside sources.