Dentists who plan to sell may wonder, "Do I have to replace the carpet, paint the walls, repair the torn chair in room two, and buy new plants so the place looks good?" The answer is NO! It is not necessary to do any of these things. Redecorating may actually be a waste of money.

First, most Buyers are more interested (and rightly so) in the financial aspect of your practice. The educated Buyer is usually looking for a specific type of practice, such as that of a retiring dentist, one with five operatories, a practice with capitation, a high-end cosmetic practice in a wealthy area, or one with a certain minimum cash flow. The physical aspect, other than size or location, is relatively unimportant. In fact, during appraisals the physical aspect of a dental practice plays but a small role. Second, if you were to "spruce up" the place, it's entirely possible that your taste in carpeting or paint might not be that of potential Buyers. You could actually turn people off. The new Buyer, for a relatively small amount of money, could do it just the way he or she wanted. Sometimes, an allocation is made in the purchase price to do just that.

So should you do nothing? No! There are certain things that you can do. First, clean up the place. Make sure your private office is neat and tidy. Be sure the operatories are well organized. The sterilization room/area should not look like a battle zone. The same for the front office and waiting room.

Second, re-familiarize yourself with the practice. Know what's going on, how many new patients you see, what type of procedures are done most often, your patient base (age, socioeconomic group, types of insurance, etc.), how money is handled. Nothing can hurt the sale of a dental practice more than when a prospective Buyer meets the selling dentist and the Seller can't answer the simplest questions about the practice. You'd be surprised how often that occurs.

Choosing who will sell the practice for you is a very important decision. Often, a dentist simply picks someone because he's "heard of the guy" and thinks "all those guys are alike." However, just as dentists are different, there are significant differences in dental practice brokers. Here are the criteria we believe you should follow when choosing a broker:

First, the broker should have experience in the dental field. Selling their practice, for many dentists, is a lot more than just dollars and cents. "What do I do with staff, how do I treat my patients, and what do I do in the transition?" are just some questions that are better answered by someone who knows dentistry. If the broker is a former dentist, that's an added bonus. This is not meant to be self-serving, but I can't tell you how many times I've walked into a practice and have immediately been able to empathize with the doctor. Having practiced for 15 years gives one great insight into what a fellow dentist has gone through, what his motivation for selling might be, and what alternatives might be available other than the obvious.

Second, the broker should be able to reach the greatest number of potential buyers. Where does he advertise, how often, and how many people does he reach? What other ways does he reach prospective buyers? Ask to see some ads, don't just take his word for it. What other referral sources are there?

Third, what is the set-up of the office in which the broker works? Will you be speaking to the same person each time, or are there several salespeople who each work independently of each other? We know one such broker. You have to speak to a different salesperson for each potential buyer and one doesn't know where the other is in negotiations. It can drive you nuts.

Interview more than one broker. Try to get a feel for the person. Is he straightforward? Does he seem willing to work with you, maybe even take less commission if that's what is required to close the deal? Is he honest in his appraisal of your practice? Beware of the broker who tries to tell you that your practice is worth more so he can get the listing. You may find out later that all the offers are substantially lower and feel forced into accepting a lowball offer. Consistent lowball offers may mean the Broker "lured" you into listing by promising to get you a higher price than the practice is worth.

Call people who have worked with the broker. It's a good idea to not only call dentists who the broker has sold practices for, but also dentists who are currently trying to sell their practices. Sometimes they can give you more insight than those dentists the broker has handpicked as references.