The ADA's 8 steps to selling a dental practice

The American Dental Association laid out eight steps that go into selling a dental practice. 

1. Evaluate recommend matches

The ADA can help find matches of dentists who are interested in buying a practice and provides recommendations based on selected criteria. 

2. Screening call

Once the selling dentist finds a potential candidate, they should set up an introductory phone call to see if it makes sense to continue forward with the process. 

3. Nondisclosure agreement

The selling dentist can request a signed nondisclosure agreement from the potential buyer to prevent either party from discussing any details about a potential purchase with those not involved in the final decision. 

4. Evaluating the practice

The potential buyer will look at the finances and operations of the practice to determine whether or not they would like to make an offer. 

5. Letter of intent

The letter of intent is important and sets up the rest of the selling/buying process.

6. Due diligence

This 60 to 90 day phase involves the buyer asking the seller for relevant information about the practice and is similar to a home inspection when buying a house.

7. Asset purchase agreement

The next step is drafting the final asset purchase agreement. It is important to create a strong letter of intent and stay in contact with the buyer throughout the process.

8. Closing

Once the asset purchase agreement is agreed to by both the seller and buyer, the final documents will be signed, the keys to the practice will be turned over to the buyer and the process is complete. 

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