Whether you plan to work another decade or retire as soon as you can, it’s never too early to plan for the future you want. Selling your dental practice can be an extremely lucrative part of that equation. The key is how you go about it.
If you are thinking of selling your dental practice, merging practices, bringing on an associate or retiring, you have several options. Your PARAGON consultant can help you choose one that’s right for you. Our time-tested Dental Practice Transition Programs take the guesswork, anxiety and hassle out of selling your dental practice, so you can walk away with a smile.
Say goodbye to lowball offers, broken deals and the stress of adversarial negotiations. Our Dental Practice Transition Programs are described below and customized as needed to provide a smooth transition for even the most complicated situations.
Not ready to retire? Great. You can still convert your current practice equity into a cash investment you can use today — and keep working as long as you choose. PARAGON’s Presale Program gives you the best of both worlds: You keep your steady income, but you’re free from the day-to-day stress of running a practice, and the responsibility of overhead expenses. Not to mention, when you decide you’re ready for life after dentistry, you know your patients will be taken care of. No wonder some sellers opt to pre-sell as much as 15 years before they retire! If you are interested in our Presale Program, your PARAGON consultant can help you pinpoint the right time to start. Learn more about the PARAGON Presale Program here
Do you need to relocate as soon as possible? Are you ready to retire this instant? Do you dream of selling your dental practice today and walking away tomorrow to start your next phase of life? With the right guidance, it really can be that simple. Our Walkaway Program is designed just for you. It makes life so much easier for sellers who are eager to retire or relocate. Your PARAGON consultant can help you plan your Walkaway sale to be as smooth and profitable as possible.
A Practice Merger is when an existing practice owner acquires the seller’s practice and merges the two practices together into one location. Practice Mergers present a tremendous opportunity for the buyer to grow their practice, which is good news for the seller. Practice Mergers can be structured as a Presale or a Walkaway.
Practice Consolidation is when two or more practice owners combine their practices in a single, multi-owner group practice. Unlike a merger, the practice owners become equal co-owners in the larger practice. They typically see an increase in income due to overhead savings. Additionally, internal growth is possible if one doctor provides services that the other doctor has been referring out of the practice.
The Co-ownership Program, or COAP, is when a doctor sells an equal ownership interest in the practice. The sale is immediate and the two doctors continue to grow the practice together. Owner income is a combination of provider income based on individual production of the doctors, and profit distributions based on equal ownership. Co-owned practices must be structured as a corporation or an LLC for owner liability reasons and for long-term capital gain advantages for the seller.
A Progressive Ownership Program, or a POP, is a combination of the associate/co-ownership plan. The new co-owner comes into the practice as an associate with a formal contract that leads to equal practice ownership. The buy-ins occur in stages based on the production level of the associate versus the production level of the practice owner. The POP is similar to the COAP program, but structured for a slower pace.
Ownership Redemption is when one owner of a multi-owner practice desires to sell his or her ownership interest. This transaction can either be structured as a sale to the other owners of the practice or to a new owner.
Any of the above transitions can be structured with contractual delays. Ask your PARAGON consultant for details.