What does a dental practice broker do?
A dental practice broker markets a practice for sale, screens buyers, and helps negotiate and manage the transaction, usually on behalf of the seller. In most deals the seller pays the broker a commission at closing. Buyers can use a broker's listings but should have their own CPA and attorney, and should ask who the broker represents.
What brokers do
- Prepare the practice for sale and present its financials.
- List it, usually anonymously, and screen buyers who sign a confidentiality agreement.
- Help negotiate price and terms and coordinate lenders, attorneys, landlords and accountants.
- Manage the timeline to closing.
Who pays and who the broker represents
In most deals the seller signs a listing agreement and pays the commission. That means the broker usually works for the seller. A buyer who wants someone on their side hires a buyer-side consultant, attorney and CPA.
Questions to ask a broker
- Who do you represent in this deal?
- How many dental practices did you close in my area last year?
- How are you paid, and what are the terms of the listing agreement?
- Can I speak with a recent buyer and a recent seller?
Using a directory
Dental Agora's directory lists brokerages from public information. It is not verified and not an endorsement. Check state licensing rules and references yourself.
Related
- Directory of brokers, lenders and advisors
- How to buy a dental practice
- Dental practices for sale by state
Common questions
Do I need a broker to sell my practice?
No, but many owners use one for buyer screening, confidentiality and negotiation. Compare the listing agreement's term, fee and exclusivity before signing.
Is a broker's asking price a valuation?
It is the seller's and broker's ask. Ask for the reasoning, and consider an independent valuation.