Brokers vs. Consultants - There is a difference!

A dental practice is an exceptionally unique entity. It is a direct reflection and extension of the personality, philosophy, and methodology of the practice owner-practitioner. Matching the right parties, both clinically and financially, requires an extraordinary understanding and sensitivity to the needs of the profession.

A new practitioner should consider all methods of acquiring equity in a practice before deciding to purchase a practice. When one considers that a practitioner averages thirty-five years of practice, the wrong decision can cost the purchaser millions of dollars.

Purchasing a practice is not merely a $100,000, $300,000 or $500,000 decision. It is a multi-million dollar decision. For example, if a practice is grossing $300,000 and you expect to practice approximately 35 years, then, without adjusting for inflation, it’s a $10,500,000 decision.

A consultation with a PARAGON consultant will help the new practitioner determine his or her long-term personal and professional needs, and then select the right approach to private practice. PARAGON's years of experience allows the new practitioner to gain considerable knowledge and insight into his or her profession and a better understanding of the economics of private practice before considering purchasing a practice.

Brokers will simply “list” a practice, advertise the practice, and attempt to locate someone willing to buy the practice. Money is the only driving force of the deal. If a buyer displays an ability to pay for the practice or obtain financing, then that is the right buyer for the deal. Practice sales, not suitability, are a broker’s primary concern. Brokers represent only the interest of the seller, not the purchaser. Therefore, the purchaser is forced to rely on his or her own limited knowledge to sort through a multitude of pitfalls involved in purchasing a practice...and these pitfalls are indeed numerous!

Attorneys and accountants often create an adversarial environment during the “negotiation” process. This adversarial posture frequently causes the entire transaction to fall apart. In fact, in the typical unilateral “negotiation” approach, the transaction failure rate is well in excess of 50%. And worse yet, both parties can easily spend thousands of dollars in the negotiation process without ever resulting in a successful closing.

PARAGON's dual representation approach allows us to complete practice transitions at an extremely high success rate – more than 99% of our transactions close as planned. PARAGON consults with both clients to determine their particular needs and goals, appraises the TRUE fair market value of the practice, matches the parties based on suitability and compatibility, prepares bilateral and equitable contracts for review by each party's attorney, and orchestrates the entire process in a completely and totally non-adversarial environment.

Negotiations means someone loses or, as in many cases, everyone loses. Dual Representation has earned us a reputation for professionalism, integrity, and total fairness with all practice transitions. PARAGON’s results are a “Win / Win” for both parties.

If you feel that making informed decisions to secure your future is worth the investment, then call PARAGON today to arrange for a consultation... you'll be glad you did!

ã Paragon, Inc. All rights reserved. For more information on this or other PARAGON articles contact PARAGON at 1.866.898.1867 or via email info@paragon.us.com. Other articles are available for review on PARAGON’s website: www.paragon.us.com.