(856) 234-3536
PO Box 98
Mount Laurel, NJ 08054

Category Archives: Consulting

  HomeAmerican Practice Consultants  |  Consulting

What Dentists Are Looking for When Buying a Dental Practice

Posted on 0 Comments

What Drives Dentists Toward Ownership?

For many dentists, practice ownership is the ultimate goal. It’s the path to autonomy, increased income, and the opportunity to shape a business that reflects their values and clinical philosophy.

But once a dentist decides they’re ready to buy, what exactly are they looking for in a practice?

In this post, we’ll explore the key factors dentists consider when evaluating dental practices for purchase, and how sellers can position their practices to meet buyer expectations.

1. Location, Location, Location

A great practice in the wrong location can be a dealbreaker. Dentists typically look for:

  • Proximity to home or preferred lifestyle areas

  • Growing or stable population demographics

  • Good visibility and parking access

  • Reasonable competition in the area

Tip for Sellers: Highlight community amenities, patient demographics, and referral relationships when marketing your practice.

2. Strong, Loyal Patient Base

Buyers want to walk into a practice with steady revenue and consistent patient flow. They look for:

  • Active patient count over the past 12–24 months

  • New patient acquisition trends

  • High patient retention rates

  • Patient base with favorable insurance mix or fee-for-service ratios

What Helps: Sharing KPIs like recall rates, patient attrition, and appointment backlog can demonstrate practice stability.

3. Healthy Financial Performance

Ultimately, the financials drive the decision. Dentists often request:

  • 3–5 years of profit and loss statements

  • Collections and net income trends

  • Overhead breakdown

  • Salaries, lab costs, and rent structure

Practices with clean books, consistent earnings, and 55–65% overhead are especially appealing.

Bonus: Sellers who clearly separate owner compensation from practice profit make it easier for buyers to understand true earnings potential.

4. Modern Equipment and Digital Systems

While not every buyer expects the latest technology, most dentists appreciate:

  • Digital X-rays and intraoral cameras

  • Paperless records / practice management software

  • Well-maintained chairs, compressors, and sterilization units

Outdated equipment isn’t always a dealbreaker, but it can affect pricing—or lead buyers to factor in upgrade costs.

5. Growth Potential

Dentists want practices with room to grow, whether through clinical expansion or operational efficiency. Key indicators include:

  • Procedures currently referred out (e.g., implants, molar endo, ortho)

  • Available space for an additional operatory

  • Marketing opportunities not yet explored

  • Limited evening or weekend hours that could be added

Smart Sellers: Frame untapped opportunities as upside, not shortcomings.

6. Strong Staff and Office Culture

A committed, well-trained team is a huge asset. Buyers want to see:

  • Long-term employees with patient rapport

  • Low turnover

  • Positive workplace culture and team dynamics

When possible, buyers often want to retain staff to help ensure a smooth transition and patient continuity.

7. Favorable Lease or Real Estate Terms

If the practice doesn’t own the building, the lease becomes part of the deal. Buyers look for:

  • Assignable lease with multiple renewal options

  • Reasonable rent-to-revenue ratio (ideally under 7–9%)

  • Option to purchase the real estate in the future (preferred by many buyers)

If the seller owns the building, clarity about purchase or lease terms can be a major selling point.

8. Smooth Transition Plan

Most buyers aren’t just looking at the numbers—they’re looking at the human side of the transition too.

They value:

  • Willingness of the seller to stay on temporarily if needed

  • Help introducing patients and staff to the new owner

  • Assistance navigating insurance credentialing and business setup

Practices with well-thought-out transition strategies are more attractive and less risky.

In today’s market, dentists ready for ownership are looking for financially sound practices with strong patient relationships, growth potential, and minimal friction during transition.

If you’re a seller, aligning your practice with these buyer priorities—and working with an experienced dental broker—can make your practice more attractive, speed up the sale, and help you command top value.

Are You Ready to Sell—or Looking to Buy?

At American Practice Consultants, we help dentists across New Jersey and Eastern Pennsylvania connect with the right buyers and sellers. Whether you’re preparing your practice for sale or actively seeking the perfect acquisition, our team will guide you through every step.

📞 Contact us today for a confidential consultation and take the next step toward ownership or retirement.

Why Confidentiality is Critical When Selling Your Dental Practice

Posted on 0 Comments

Selling a dental practice is a major decision, but it’s also a sensitive one. From staff morale to patient retention, the process must be handled with discretion to avoid unnecessary disruptions. This is where confidentiality plays a vital role.

In this guide, we’ll explore why confidentiality is essential when selling a dental practice, the risks of mishandling sensitive information, and how brokers protect your interests throughout the process.

Why Confidentiality Matters in Dental Practice Sales

  1. Protecting Patient Trust

Patients choose your practice not just for its services but for the relationships they’ve built with you and your team. If patients learn prematurely about the sale:

    • They may feel uncertain about the continuity of care.
    • Some may decide to leave the practice, reducing its value.

Tip: A smooth transition with clear communication after the sale can reassure patients and maintain their loyalty.

  1. Maintaining Staff Morale

Your staff is one of your practice’s most valuable assets. Premature disclosure of a sale can:

    • Cause anxiety about job security.
    • Lead to key staff members leaving before the transition.

How Confidentiality Helps: By keeping the process discreet, you can plan the right time and way to inform your team, ensuring a seamless transition.

  1. Preserving Practice Value

If news of a potential sale leaks, it can affect your practice’s perceived stability. Competitors might try to take advantage, and patient attrition can hurt your valuation.

Example: A high-performing practice with stable patient retention is far more attractive to buyers than one experiencing turmoil due to rumors of a sale.

Risks of Breaking Confidentiality

Failing to maintain confidentiality can lead to:

    • Patient Attrition: Patients may leave if they fear changes in care quality.
    • Staff Turnover: Key employees may seek other opportunities if they feel uncertain about their roles.
    • Competitor Interference: Competitors may target your patients or staff, weakening your practice before the sale.

Case Study: A dentist decided to pursue a “for sale by owner” approach to selling their practice, and publicly listed their practice without confidentiality measures.  This staff resignations and a 20% drop in patient volume. The eventual sale price was significantly lower than expected due to these disruptions.

How Brokers Ensure Confidentiality

  1. Anonymous Marketing

A professional broker uses anonymous listings to market your practice. These listings highlight key details without revealing identifying information such as:

      • The practice name.
      • Exact location.
      • Specific patient demographics.
  1. Non-Disclosure Agreements (NDAs)

Brokers require potential buyers to sign NDAs before sharing sensitive details about the practice. This ensures that only serious, qualified buyers access confidential information.

  1. Screening Qualified Buyers

Brokers vet buyers to ensure they have the financial capacity and genuine interest in purchasing a practice. This reduces the risk of sensitive information being shared with competitors or unqualified individuals.

  1. Controlled Communication

Brokers act as intermediaries, managing all communications between the buyer and seller. This ensures that:

    • The process remains professional and discreet.
    • Sellers retain control over what information is shared and when.

When and How to Share Information

There comes a time in the sale process when you’ll need to inform staff and patients. Here’s how to do it effectively:

    1. Timing is Key
      • Staff: Inform your team once the sale is finalized or when a transition plan is in place.
      • Patients: Notify patients shortly before the transition, emphasizing continuity of care.
    1. Crafting the Message
      • Reassure both staff and patients that the transition will be seamless.
      • Introduce the new owner as someone committed to maintaining the practice’s standards and values.
    1. Use Positive Framing
      • Present the sale as a step forward for the practice, ensuring all parties feel confident about the future.

Why Choose Us?

At American Practice Consultants, we prioritize confidentiality at every step of the dental practice sale process. Our expertise ensures:

  • Secure Transactions: Your practice’s information remains private and protected.
  • Stress-Free Transitions: We help you craft a communication strategy for staff and patients to ensure a smooth handover.
  • Local Market Knowledge: With deep expertise in New Jersey and Eastern Pennsylvania, we connect you with serious buyers who align with your goals.

Conclusion

Maintaining confidentiality is critical when selling your dental practice. By protecting sensitive information, you can preserve patient trust, staff morale, and practice value, ensuring a successful and profitable sale.

Ready to take the first step? Contact us today for a confidential consultation and learn how we can help you sell your practice discreetly and effectively.

kevin-cooper

Introducing Kevin P. Cooper as the New Owner

Posted on 0 Comments

Elevating Dental Practice Transitions in Eastern Pennsylvania and New Jersey

Moorestown, NJ – American Practice Consultants, Inc., a leading dental broker and practice transitions company serving Eastern Pennsylvania and New Jersey, is delighted to announce the appointment of Kevin P. Cooper as the new owner, effective May 1st, 2023. With extensive experience in assisting dentists buy and sell dental practices, Kevin has been an integral part of the company since 2017, working alongside his father, Philip A. Cooper, DMD.

Dr. Cooper established American Practice Consultants in 1985, recognizing the need for expert guidance in dental practice transitions. Through years of dedication, he has successfully built the business from the ground up, completing numerous buy and sell transactions within the region. Dental professionals trust his expertise and rely on his proven track record.

Drawing upon over 16 years in the corporate world, where he excelled at Gartner in Stamford, CT, and the American Board of Internal Medicine in Philadelphia, PA, Kevin brings a unique blend of customer service, business acumen, and healthcare knowledge to his new role. He is enthusiastic about continuing to assist dentists in buying, selling, and valuing dental practices. Dental professionals can leverage Kevin’s expertise and background to navigate the complexities of dental practice transitions seamlessly.

While Kevin assumes ownership, Phil will remain involved in all aspects of the business, ensuring a smooth transition. Phil’s unparalleled market knowledge is invaluable, and he is excited to witness Kevin take charge of the day-to-day operations. Together, they will continue to deliver exceptional dental broker services and support to professionals across Eastern Pennsylvania and New Jersey.

American Practice Consultants, Inc. remains committed to providing unparalleled dental practice brokerage and transition services. Under Kevin’s leadership, the company is poised to further enhance its brokerage service offerings, catering to the specific needs of dental professionals seeking to buy or sell a dental practice. As a trusted dental practice broker in Eastern Pennsylvania and New Jersey, American Practice Consultants is dedicated to delivering results.

Whether you are a dentist looking to buy a dental practice or considering selling your current practice, American Practice Consultants, Inc. is your go-to partner. Contact us today to experience the expertise and personalized guidance that sets us apart as the premier dental practice broker in Eastern Pennsylvania and New Jersey.