Dentaltown August 2021 - 59

SMART PRACTICE SALES
Part 2 of a two-part series by Jay Geier
Jay Geier is an advocate for
independent dentists and a world
authority on growing independent
practices. His mission after 25+
years of coaching doctors is to
help them preserve and protect
their legacy and their fi nancial
future. Geier is committed
to helping doctors become
fi nancially free so that they can
live the lives they dream of and help people in more ways
than they originally planned. Educating dentists on how
to stay independent and grow a successful practice while
creating work-life balance is the topic of the two-day events
he is hosting this year. Go to schedulinginstitute.com/townie
to see dates and availability of upcoming events. He also
advises on this topic often on his Private Practice Playbook
podcast- subscribe at podcastfordoctors.com/townie.
L
ast month, I talked about the strategies used by predatory buyers like private-equity fi rms who " fl ip " dental
practices-buying them from vulnerable independent practitioners at bargain-basement prices, then reselling
them for a tidy profi t. Those strategies included offering to pay for the appraisal of the selling dentist's practice,
as well as asking the seller to sign a noncompete or nondisclosure agreement.
This month, I'll discuss why it's important to recognize other techniques these companies also commonly
use to manipulate independent practice owners into selling their life's work short. By guarding against these
well-disguised tactics, you'll be in a better position to defend yourself, your equity and your practice against any
wolves in sheep's clothing.
Instilling fear that this is your only chance to sell
Fear is the most commonly used tactic to manipulate the decisions and actions of
others-instilling fear of what you'll " lose " if you don't do what someone else wants.
Predatory buyers would have sellers believe that if they don't sell now, they won't have
the opportunity to do so later because there won't be any buyers. That's nonsense-in
reality, it's just the best time for those buyers to buy, which has nothing to do with when
it's best for a dentist to sell.
Low interest rates on borrowing money are behind today's glut of private-equity funds
and the push to buy independent practices. These buyers are under pressure to grow their
companies by scooping up several dental practices, then cutting costs to the bone at each
one, rather than investing to grow any of them. They'll likely resell the entire company
within fi ve to seven years.
The buyers' metrics revolve around how many deals they've closed each quarter and
each year, so pressure for you to sell will get notably stronger toward the end of a quarter.
Don't let them pull you into their pressure cooker by falling for their scare tactics.
Also, don't be fl attered if someone calls and tells you how much they want to buy your
practice. These are not the buyers themselves, but telemarketers from call centers who are
paid based on leads generated (and may even get a percentage if you sign an agreement).
This won't last forever; the economy always has gone in cycles, and always will. There
will always be buyers for viable, profi table practices. Wait for the time and circumstances
that are right for you, based on how long you need income, then make an educated,
well-informed decision without succumbing to pressure tactics.
dentaltown.com \\ AUGUST 2021 59

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Dentaltown August 2021

Table of Contents for the Digital Edition of Dentaltown August 2021