Our Mission

• To always deal with integrity and respect
• To provide the best possible service for our dental clients in a confidential, non-adversarial manner.

Our Services

• Practice Management Consultation
• Dental Practice sales
• Dental Practice evaluations
• Retirement planning
• Financial planning

THE SALE PROCESS

This will be one of the most difficult - and rewarding - undertakings of your life.

It represents leaving a lifetime of work and commitment and getting paid for it.

It is not to be undertaken without serious thought and consideration. You need expert help to appraise, to market, to advise. You may need the help of brokers, attorneys, financial planners and accountants. Be ready.

Be ready to have the most intimate financial details of your practice subject to scrutiny.

It's hard. It's difficult. It's also necessary.

Some of the other details you may need to discuss are:

• ethnic/religious/social makeup of your practice
• substance abuse
• malpractice/fraud/OSHA
• managed care

We will have provided you with a partial checklist.

My job, as broker, is to bring a buyer and seller together, draft a letter of intent, and consult with and guide other appropriate professionals to facilitate the sale.

As you can see, the process is lengthy, detailed and involved - with no guarantee! We try to make the journey as easy as possible.

We offer over thirty (30) years of dental experience, ten years of financial counseling as a Certified Financial Planner and ten years as a practice broker.

If you're looking for the best, call us. We can arrange a meeting at my office and let you decide.

ESTABLISHING PRACTICE VALUE

Buying a predictable income

Most purchasers are looking to purchase a job and need:

1. Facility
2. Staff
3. Tools
   • equipment
   • supplies
4. Support Systems
   • computer
   • recall system
   • method to attract new patients
5. Available Raw Materials
   • patient base

Minimizing Risks

1. Determine a price - practice must cash flow
2. Demand of location - area competition
3. Quality of fee structure - should meet norm for area
4. Equipment age and condition
5. Seller's urgency
6. Percentage of reduced fee programs

Transferring Patients

Handling Accounts Receivable When Selling

Options:

1. 90% of collections for first 90 days. First in-first out. Balance to be collected by Seller.
2. Purchasing total - schedule:

   a.		current		90%
   b.		31-60 days		70%
   c.		61-90 days		50%
   d.		91-120 days		25%
   e.		121+ days		0%

What is Goodwill and How is it Valued?

1. Things in place and working:

   a.		possession of patient records
   b.		existing staff
   c.		location
   d.		phone numbers
   e.		past history of earnings
   f.		use of facility in the future
   g.		covenant not to compete
   h.		recall system
   i.		collection methods

2. Goodwill

Positives and Negatives of Your Practice as Buyer Sees It

1. Clean
2. Neat
3. Friendly
4. Bright and decorated in light colors
5. No out-of-date magazines or half dead plants
6. No need to purchase new equipment or go through extensive remodeling. Pass that cost on as a savings to the buyer.
7. Make sure equipment is in working order.
8. Remove valuable paintings and items not to be sold with practice if possible (except licenses or awards).

REMEMBER…IT'S THAT FIRST IMPRESSION THAT COUNTS WHEN YOU FIRST WALK IN.

Average Length of Time to Sell

What an Evaluation Should Establish

1. What earnings (profits) exist.
2. If earnings (profits) will be adequate to satisfy what will be necessary to pay practice expenses and pay a reasonable salary to the buyer.

Practice Profitability

1. Net profit determines:

   a.		Pay practice expenses
   b.		Pay back loan
   c.		Provide personal income

2. Gross receipts determines growth (intangible factors working)

Practice Overhead Analysis (all approximate)

Example:

Tangible Assets

• Equipment
• Other furnishings
• Fixtures
• Leasehold improvements
• Small hand instruments
• Consumable supplies

About Robert J. Mallin, DDS, CFP

Throughout my career in dentistry, I have been keenly interested in the management aspects of dental practice. I have studied with Purinton, Hollander, Barkley, Pankey, Wirth, Price, Reed, A. King and Southam - and others too numerous to mention. Financially, my practice is in the top 1% of all practices. I have personally bought six dental practices, incorporating five into my own, and I have personally sold two. How many consultants do you know who have personally bought/sold eight practices?

Outside of dentistry, I have purchased and sold raw land, syndicated a private placement partnership for a large shopping center, built two office buildings, earned my Certified financial Planner designation, established a jewelry business for my wife, opened a Hallmark card/gift store for my daughter, and financed and consulted on the formation of my son's wholesale office supply business.

From my many experiences, I have developed a dream which has as its mission helping dentists through the transitions of their professional life - whether it be an association, merger, buying or selling, or an earned equity association or the creation of a sound financial plan.

If you feel you would like to explore the possibilities open for you, I would be happy to spend an hour or so talking with you. No obligation for this first meeting, of course.