"Time" To Sell
David Rourke - Sales Representative, MBC Brokerage
With the start of 2022 already in the rear-view mirror, many practice owners are giving consideration to selling this year. I have already fielded a number of calls from dentists this January who are certainly thinking about selling in the next 12 months, but aren’t sure yet. During almost all these calls I get the question – “How long does it take to sell a practice and when should I start?” I thought the beginning of the year would be a great time to try and break that question down.
When Should I Start?
If selling is on your mind than the answer is likely now. That may not mean getting an appraisal done right away; however, a conversation with a knowledgeable and experienced broker will help assess how “ready” the practice is for sale and if there are any potential obstacles that need to be addressed. If you are ready… great! An hour of conversation is worth the peace of mind. But if there are issues that arise, getting a head start on correcting them is better than dealing with them during the sale.
How Long Does It Take to Get Ready For a Sale?
This part comes with a lot of “it depends” but generally speaking I’m going to say 4-6 weeks. At MBC, we pride ourselves on the timeliness of our appraisal service and generally can complete one within 2 weeks of receiving all the necessary information. But it’s a fair bit of information and just the collecting part can take 2 weeks or longer depending on how organized the client and their advisors are. Given the complexity of a practice sale and the importance of the result, it is always better to allow for some extra time to get it done right. However, when the circumstances require it or the client is ready to go, we can move quickly!
How Long Does it Take to Find a Buyer?
If you are in a competitive market with strong demand (think a general practice in an urban area) you are probably looking at 2-4 weeks from when your practice goes on the market if priced and represented appropriately. If you are a specialty practice or in a remote area it could take 3 months and even over a year depending on the circumstances. These practices can be very case specific so best to speak with a broker if this applies to you.
How Long Does it Take to Close a Deal?
A good benchmark is around 90 days from when the offer is accepted to when the deal closes. Sometimes, when everything goes smooth and both parties are really working together towards a successful closing, it can happen closer to 60 days. Alternatively, it can take much longer if not handled properly or if the obstacles mentioned previously were not addressed and come up as a surprise during the deal.
All in, you are likely looking at between 5-6 months from the day you officially start to work on the sale to when you close the deal. Sometimes it can happen quicker and when circumstances dictate, we can move very quickly; but always best to start with what is expected.
If you were hoping to spend the summer of 2022 celebrating the successful sale of your practice, now is the time to give us a call.