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Once a buyer does become seriously interested in a practice, what is your role exactly?

Our role is to complete the transaction by doing our offer first, get it accepted, know what we have to accomplish subject to the buy-sell agreement being approved, subject to the lease being completed, subject to bank financing, subject to a lease that needs to be assigned, subject to the buyer getting life and disability insurance, being the banker being the beneficiary. This is very important, because if something happens to the buyer, when he goes snow skiing and breaks a leg, that the bank needs to be paid and god forbid, if something happened to him and all blacks and he dies, to pay off the bank, so we need those requirements, so we have people that we align ourselves with that can get the life and disability because the problem today is on our cash flow projection, you need an insurance person that can get that disability income for the bank because the average insurance person does not know how this all goes together, will not have the knowledge to obtain an insurance policy.

So, once financing has been secured, is your job finished?

Absolutely not. What we do from that point is I give a practice transition through a consultant named, Phyllis Waite in Southern California. She has been doing it for 30 years and for us for the last 10, and what that means practice transition is she transfers the legends of the staff from the seller to the buyer, so it is an eight-hour class. We even have a script for the staff on how to answer the phone, how to talk to Mrs. Jones on what happened to the previous seller and why is our new buyer the best dentist in the whole wide world, so this is very important. Then after that period of time, we follow our buyers for 12 months to make sure he is doing the cash flow of our cash flow analysis that convinced him to buy in the first place because we show what the collections are going to be, all the expenses, and what is his true net, what is the bottom line, and this is so important because if you tell a buyer that he has a practice worth $350,000 and you don’t show what he is going to make, how is he going to make that decision to complete that sale and sign on the dotted line if he does not make at least on something like a $100,000 net and what I mean by net, is true net after the bank payment and all the other expenses. So, then if the buyer does not do what I project, then I bring in a practice management person at my expense to find out what is wrong. If we do price it right, get the right people involved, attorneys, so forth and then followup our buyer; he is going to be successful.