9th Practice Management The Market in the Ninth By Mr. Alan Clemens President & Founder, The Clemens Group The Ninth District is inarguably one of the most sought after areas to practice dentistry in the tri – state. Spanning 5 counties with its diversified demographics and needs it is a truly unique region. However, the dental transitions market in general is far more complex and potentially confusing than ever before. There are a myriad of new options out there - such as mergers, partnerships, group space sharing, and many more - for dentists to capitalize on, but it takes knowledge and diligence to determine which one is right for you. The traditional idea of an associateship leading to a buy – in has become increasingly rare. This is partly based on much greater financial pressure on doctors out of school with enormous loans. They simply can’t wait for as many years to own anymore. It is also based on many sellers needing to work longer than they intended due to the recession’s effects on their retirement planning and the economic costs and expandability of their practices. So who is buying? There are less real buyers out there than ever and they have a lot of offices on the market to choose from. As a result they are more selective and require substantial information and verification. The key is putting in the time and effort to find the buyer and seller match that are best suited to each other. This all begins with a thorough understanding of the practice for sale and packaging it correctly to showcase its strengths. Next you need a large diverse pool of qualified and serious buyers to work with. This type of approach to the sale provides a win – win result where a buyer is assured long term success and is happy to pay a fair price for it. Once you find the right match there are many different options for how to structure a deal to maximize the benefit to both parties. You just need a seasoned advisor with the expertise. One of the most talked about topics in recent years is the “dental group”. This catch all term refers to corporate dentistry. There’s no denying 16 that these groups have made an impact on the dental market and there are as many opinions on them as there are dentists. They each have their own business model and understanding the pros and cons of each is paramount in finding out if one might be right for you. The saturation of the internet has led to an increase in the number of “for sale by owner” offices, or FSBO’s. Having the right knowledge and approach to this method to discern between the qualified buyers and the tire kickers, or inversely the financially sound offices and the lemons, can save you countless time and frustration. One important fact about FSBO’s is that it is imperative that you cover your confidentiality concerns before you start disseminating your personal financial information, as well as getting the right information on potential buyers to know who you’re dealing with. With so many different possibilities for the sale or purchase of your office you can’t settle for just one option. You need a multi – pronged approach that will explore all roads. To get your best “fair market value” for your office you need…a market, and one or two buyers does not a market make. As a buyer or seller, don’t sell yourself short. Take the time to get informed about today’s transition market before you start. The good news is that throughout all the changes in the dental market over the years one simple fact remains true. Whether buying or selling, working with a transition specialist with your interests in mind can simplify and ensure finding your custom made best deal. With a previous background in practice management, Alan Clemens has been conducting dental transitions since 1969. As a resident of Duchess County for over 20 years he is your best solution for dental transitions in the ninth district. The Clemens Group is committed to assisting dental practitioners in the smooth and profitable sale of their practices and to helping buyers make an easy, successful transi-  BULLETIN NINTH DISTRICT DENTAL ASSOCIATION