Here’s The Simple 5-Step System We Used to Do It:

Let me explain how we did it…

Since 2011, we’ve helped hundreds of dentists sell their practices with our Integrity Practice Sales System (IPS System).

It’s the exact 5-step method we used to sell Dr. O’Connor’s practice on the first day of being listed. It’s also the strategy that has our clients saying THIS:

With this strategy, we have been able to:

all without...

But ALL because of one streamlined sales system that allows dentists to easily pass their practice on to a buyer who will do their hard work justice.

After 13+ years helping hundreds of dentists sell their practices, here’s what we’ve found works best: The Integrity Practice Sales System

The Integrity Practice Sales (IPS) System is a 5-step strategy that simplifies and streamlines the journey of selling your dental practice.

Here’s how it works:

Let’s look at each of these steps in-depth, and how you can replicate it in your own selling process.

Step One: Thoroughly Analyze the TRUE Value Of Your Practice

Before you even think about putting your practice on the market, you need to first uncover its TRUE value.

And that starts by recognizing that value goes beyond collections. It’s important to have a full view of both tangible and intangible factors that make up your unique practice so you can price it fairly.

When carrying out this step with our clients, we split it into two stages:

First, we conduct a pre-diligence analysis. You want to evaluate all of the areas that a buyer will be scrutinizing prior to their purchase and handle any issues before they affect negotiations.

To do this analysis effectively, you need to:

• Do a complete financial review: Audit all your financial documents for the past 3 - 5 years. Look at your revenue stream over that time period, and make note of anything that a buyer would view as a red flag (e.g., significant declines in profit, or unusual spikes in expenses).
  

• Thoroughly analyze your practice: Create a detailed record of the procedures you offer, their fees, any insurance costs, and a list of all your patients and their details.
  

• Asset review and valuation: Conduct an inventory of all equipment, fixtures, and technology used in the practice. Evaluate their condition, and consider whether they need repair, maintenance, or upgrade prior to sale.
  

The second stage is the valuation itself. It’s important to do your pre-diligence analysis first, as the value of your practice could be significantly affected by any issues you find.

For this, you can use the free dental practice valuation calculator on our website. After answering a few simple questions about your practice, you’ll instantly get a market-based valuation range.

Step Two: Create A Compelling Value Narrative to Attract The Right Buyers

Our goal of “attract the right buyers” can be split into two main elements:

1. Attracting buyers in general
2. Making sure they’re the RIGHT buyers
   

Ticking both of those boxes simultaneously requires a balance in your marketing materials that most fail to strike.

Dentists will often highlight aspects of their practice that mean a lot to them personally. But those features don't always match up with what buyers are looking for.

So, attracting buyers… doesn’t happen.

But swinging too far in the opposite direction and keeping everything sterile (...pun intended) and emotionless, you’ll likely only attract those who see your practice as a money maker.

The right buyers? Forget it.

To find that perfect middle ground, you need to craft what we call a value narrative.

Your marketing should highlight the value your practice possesses (which attracts buyers more generally), while communicating a narrative that showcases the legacy you’ve built (which speaks to those who want to carry the torch, i.e., the right buyers).

To pull off this balancing act, there’s a few points you need to hit in your marketing:

• Highlight features of your practice that align with common buyer priorities – e.g., profitability, schedule, and an efficient team.
  

• Emphasize the practice's future potential – e.g., revenue opportunities from untapped services, expanding patient demographics, or efficiencies in staffing and equipment.
  

• Anticipate objections from potential buyers and their advisory teams, and overcome them before they arise – e.g., highlight patient satisfaction, referral networks, or operational efficiencies.

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Step Three: Find A Qualified Buyer

A qualified buyer is not just whoever can afford your practice.

They are someone who is dedicated to maintaining the reputation and quality of care that you’ve worked so hard to establish.

Even though your value narrative marketing will act as a robust buyer filter, don’t take it for granted. You must still carry out your own screening and qualification process to ensure that your practice will be in good hands post-sale.

There are a few things you should look for in a potential buyer that will quickly reveal whether they are a good fit for your practice…or not:

• Financial qualification: Being able to maintain the legacy you’ve built does require a certain level of financial backing. This goes beyond the upfront cost of purchase – your buyer must be able to afford to maintain your level of service long-term.
  

• Cultural fit: Buyers should share your values, ethos, and approach to patient care. If your practice has a specialized focus (e.g. pediatric dentistry, orthodontics etc.), the buyer's expertise should align with those services.
  

• Long-term vision: Buyers should be motivated not to simply maintain your practice, but to build on its success. Look for those who see the potential for growth into the future.

Step Four: Analyze and Negotiate Your Offers

Not all offers are created equal – you need to look beyond the dollar amount, and really dig into the details of the terms.

There are three main areas you need to weigh up:

• Terms of payment,
• Contingencies, and
• Post-sale involvement.
  

To gain an understanding of what a good deal looks like to you, here are some questions you should ask yourself in each of those areas:

1. Terms of payment

• Would I be willing to accept a lower offer if it came with better terms in other areas of the deal?
  

• Do I need a larger upfront payment immediately, or would I prefer to spread payment out over a longer period?
  

2. Contingencies

• What are the key contingencies in the offer?
  

• How much risk am I willing to accept with these contingencies?
  

• How long am I willing to wait for the buyer to clear them?
  

3. Post-sale involvement

• Does the buyer expect me to stay on for a transition period?
  

• If so, how long would I stay on for?
  

• What level of involvement would I be comfortable with?

Step Five: Confidently Navigate the Escrow Process

Escrow is the final stage of the selling process. It is critical that you know what to expect so that you can navigate it with confidence, ensuring it runs smoothly.

During this phase, both you and your chosen buyer will work with an escrow officer. Their job is to ensure all aspects of the sale, from legal documents to the transfer of funds, are completed in a secure and transparent manner.

Here’s the 30,000ft view of what the escrow process typically looks like:

• The buyer will perform due diligence. They will review documents such as your financials, contracts, and patient records to verify the practice’s value (hint: this is why step one is so important!)
  

• All assets will be formally transferred. This includes equipment, leases, and any intellectual property. Make sure you hold up your end of the agreed-upon terms.
  

• The escrow officer will act as a middleman. They will manage the distribution of funds and hold both you and the buyer accountable to your obligations. This includes releasing payment to you once all contingencies are satisfied.
  

But there’s a lot to keep track of when you’re going through this process yourself.

This is why we assign a dedicated transaction coordinator to every single sale we’re a part of. Their role is to coordinate:

• The buyer’s lending applications,
• The buyer’s due diligence team (consultant and/or accountant),
• The attorney’s on the deal, and
• The actual escrow company.
  

So keep in mind that, although many go through escrow alone, it pays to engage a team that will take that load off of your shoulders.

There are a few reasons why the IPS System works:

• Every action you take is paving the way for later steps. You won’t get to escrow and stress over the buyer doing due diligence, because you found and resolved any issues before you even put your practice on the market.
  

• Preparation and planning streamline the sales process. You don’t have to waste months on trial-and-error due to poorly crafted marketing, or sift through unqualified buyers who don’t see the value in your practice.
  

• It has built-in buyer qualification mechanisms. Your marketing is created with a clear idea of who you want to attract – majorly reducing the risk of dealing with time wasters.

But don’t just take my word for it – the results speak for themselves: ‍

Note: These are just a FRACTION of HUNDREDS of results. We’ve overseen 450+ successful dental practice sales, so you get the point...the IPS System is mega-successful both for us and our clients.

But the best part about the IPS System is its ability to remove the stress from the sales process.

Whether you’re looking to retire completely or just slow down a little, those final weeks or months as a practice owner should be stress-free.

You should be able to continue your high level of service and quality of care right up until your final patient, without your work being brought down by sales stress.

And that’s exactly what the IPS System has done for hundreds of dentists, including Dr. O’Connor – hear his full IPS experience below:

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