FAQs
Here are some of our most frequently asked questions and our answers. If your question isn’t on the list or you need more clarification, please call us at
(225) 927-8015 and we will answer your question in person.
SELLERS
Q: Describe what needs to happen in the transition of a dental practice.
A: Click to learn more about practice transitions.
Q. How long will it take to sell my practice from the time I list?
A. The old adage, “Location, location, location” does have an impact on a sale/transition. In a high demand area, the transaction can happen in as few as 6-12 weeks from the time the valuation is completed. In a rural or low demand area it will typically take longer. In that type of situation it is realistic to assume it could be 2-5 years---if indeed it does sell. However, the length of time depends not only on the practice location but also on many other variables.
Q: What is a reasonable Covenant Not to Compete?
A: State laws vary greatly in their interpretation of these agreements, so please consult an attorney in your area. In Louisiana, the maximum duration for these agreements is two years and the maximum area is the Parish of the practice and surrounding Parishes. This distance for the Covenant is limited by the service area of the practice, which is where most of the patients live and/or work.
Q: I have read that dental practices are worth 70% of their gross receipts averaged over the past three years. Is that true?
A: Rules of thumbs are simplistic and don’t usually work. Unless you are willing to acknowledge that your practice is "average or below average" in all respects, you should probably get an appraisal. A prospective buyer is also more likely to dispute practice prices arrived at by guessing.
Q. When ADS lists my practice for sale, how will it be marketed?
A. In addition to the ADS website, ADS has a relationship with Dental Economics which publishes all listings on a monthly basis. Additionally, many brokers through the network publish and distribute newsletters to dentists.
Q. Will my patients accept a new dentist?
A. Your patients will accept a new doctor if the introduction and transition are handled the right way. Your endorsement, coupled with staff acceptance and enthusiasm, is the key.
Q: Will I have to carry a note in the sale of my practice?
A: In nearly all cases it is possible for the buyer to secure 100% financing so you will be paid in cash at closing. Click to learn more about practice financing.
Q. How do you appraise a practice?
A. We utilize four different methods which we weigh and average in order to determine fair market value.
Q. How can I make my practice more valuable?
A. Clean up the clutter, increase your number of patients and production. Do not buy new equipment, as equipment depreciates in value too rapidly.
Q: Does my dental practice need to be a certain size before I consider hiring an associate?
A: The higher your gross production and the more patients you have, the better candidate you become to hire an associate. If you lack adequate active patients, the associate's salary will add to office overhead and your personal income will likely suffer.
Q. How do I get in touch with ADS Lovelace and Associates?
A. Click here to contact ADS Lovelace and Associates
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