Dentaltown November 2017 - 100

REL ATIONSHIPS GO SOUR WHEN MONEY IS STRETCHED TOO TIGHTLY-
BUT WITH TH
E RIGHT PL AN
NING, MOST O
F
Let's start with the fact that a selling
doctor usually employs a broker, who earns
closing fees for the sale. Brokers are friendly
people, and many times purchasing doctors
feel like the broker's looking out for them
in this sale as well. Not so! The broker
is employed by the seller, and so will be
working toward a successful sale for the
seller. Purchasing doctors also benefit from
representation in these transactions; their
broker deals directly with the seller's broker.

Scenario A
Catch
Dr. Bill
Blatchford's
podcast
Dr. Bill Blatchford
discusses more about
transitions, referrals
and closing up shop
every August in his
Dentistry Uncensored
with Howard Farran
podcast. To stream
the audio, watch
the video or read
a transcript, visit
dentaltown.com and
search for "Abundant
Life"-the podcast will
be the first result.

100

NOVEMBER 2017 // dentaltown.com

A dentist isn't certain he wants to sell his
practice entirely, but selling half of it looks
like a good solution-he's tired of doing all
the work and could use the extra cash. A
younger dentist purchases half the practice.
Some important questions for the selling
doctor:
* Are you really ready to sell?
* Are you counting on the sale of the
practice to fund your retirement?
* Are you ready to step out of producing
dentistry?
* Are you ready to retire? What are you
retiring to?
* Is your spouse ready for you to retire?
* Are you ready to give up being Dr.
Whitecoat?
We've seen situations where the selling
doctor, aware of his standing as the solo
owner, introduces the new partner to his
team and patients as his "associate." You
can see where this is going: The new doctor
expects to own half the hygiene patients and
half the production, while the selling partner
expects only to mentor the new dentist as
he builds his own practice.
Let's look at this partnership financially:
The selling doctor has been producing $1

million with a net of $300,000. The new
doctor purchased half for $300,000; his
principal payment is $30,000 for 10 years,
with annual interest of $7,500. His net will
be $150,000 and taxes are $50,000, which
leaves the new partner $63,000 annually
to live.
As the purchasing doctor, could you see
the fallacy of this partnership? Where is half
the net and production of this practice? It is a
single-doctor practice and there is no room for
a partner. Yet, the young purchaser borrowed
$300,000 to be a real partner.
Is the selling partner willing to give up
half the net to a new partner? What is the
expectation for both?
Lesson 1: The purchasing doctor probably
did not have representation and assumed
the selling doctor was his friend. New doctors need to ask the selling dentists: "What
part of your net are you willing to give up
to have me as a partner? Are you currently
turning patients away?"
Lesson 2: Compensation for both was not
discussed, which needs to happen before
signing a sale. Some of the most important
details include:
* What exactly is the new doctor
purchasing-is he or she (rightfully)
expecting half the hygiene production
and half the collection?
* What is the expectation of the selling
doctor as to how many more years he
or she will be practicing?
* Also, how will the partnership work
financially for each? Who will be the
leader in the practice? To whom is the
team loyal? What is the long-term plan
for the selling doctor?


http://www.dentaltown.com http://www.dentaltown.com

Table of Contents for the Digital Edition of Dentaltown November 2017

Dentaltown November 2017 - Intro
Dentaltown November 2017 - Cover1
Dentaltown November 2017 - Cover2
Dentaltown November 2017 - 1
Dentaltown November 2017 - 2
Dentaltown November 2017 - 3
Dentaltown November 2017 - 4
Dentaltown November 2017 - 5
Dentaltown November 2017 - 6
Dentaltown November 2017 - 7
Dentaltown November 2017 - 8
Dentaltown November 2017 - 9
Dentaltown November 2017 - 10
Dentaltown November 2017 - 11
Dentaltown November 2017 - 12
Dentaltown November 2017 - 13
Dentaltown November 2017 - 14
Dentaltown November 2017 - 15
Dentaltown November 2017 - 16
Dentaltown November 2017 - 17
Dentaltown November 2017 - 18
Dentaltown November 2017 - 19
Dentaltown November 2017 - 20
Dentaltown November 2017 - 21
Dentaltown November 2017 - 22
Dentaltown November 2017 - 23
Dentaltown November 2017 - 24
Dentaltown November 2017 - 25
Dentaltown November 2017 - 26
Dentaltown November 2017 - 27
Dentaltown November 2017 - 28
Dentaltown November 2017 - 29
Dentaltown November 2017 - 30
Dentaltown November 2017 - 31
Dentaltown November 2017 - 32
Dentaltown November 2017 - 33
Dentaltown November 2017 - 34
Dentaltown November 2017 - 35
Dentaltown November 2017 - 36
Dentaltown November 2017 - 37
Dentaltown November 2017 - 38
Dentaltown November 2017 - 39
Dentaltown November 2017 - 40
Dentaltown November 2017 - 41
Dentaltown November 2017 - 42
Dentaltown November 2017 - 43
Dentaltown November 2017 - 44
Dentaltown November 2017 - 45
Dentaltown November 2017 - 46
Dentaltown November 2017 - 47
Dentaltown November 2017 - 48
Dentaltown November 2017 - 49
Dentaltown November 2017 - 50
Dentaltown November 2017 - 51
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Dentaltown November 2017 - 53
Dentaltown November 2017 - 54
Dentaltown November 2017 - 55
Dentaltown November 2017 - 56
Dentaltown November 2017 - 57
Dentaltown November 2017 - 58
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Dentaltown November 2017 - 60
Dentaltown November 2017 - 61
Dentaltown November 2017 - 62
Dentaltown November 2017 - 63
Dentaltown November 2017 - 64
Dentaltown November 2017 - 65
Dentaltown November 2017 - 66
Dentaltown November 2017 - 67
Dentaltown November 2017 - 68
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Dentaltown November 2017 - 70
Dentaltown November 2017 - 71
Dentaltown November 2017 - 72
Dentaltown November 2017 - 73
Dentaltown November 2017 - 74
Dentaltown November 2017 - 75
Dentaltown November 2017 - 76
Dentaltown November 2017 - 77
Dentaltown November 2017 - 78
Dentaltown November 2017 - 79
Dentaltown November 2017 - 80
Dentaltown November 2017 - 81
Dentaltown November 2017 - 82
Dentaltown November 2017 - 83
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Dentaltown November 2017 - 89
Dentaltown November 2017 - 90
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Dentaltown November 2017 - 97
Dentaltown November 2017 - 98
Dentaltown November 2017 - 99
Dentaltown November 2017 - 100
Dentaltown November 2017 - 101
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Dentaltown November 2017 - 116
Dentaltown November 2017 - 117
Dentaltown November 2017 - 118
Dentaltown November 2017 - 119
Dentaltown November 2017 - 120
Dentaltown November 2017 - Cover3
Dentaltown November 2017 - Cover4
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