When we purchase items such as a television or a car we all want to feel like we got the best deal possible. It is disappointing when we find out our friend got a better deal on that new television or that new car. People try to translate this over when purchasing a dental practice – they want to squeeze everything possible out of the vendor.
Time and again Practice Ownership Consulting observes dentists lose good practices that are well suited to them haggling over what is, in the overall picture, a small amount given the future earning potential of the practice and buyer’s earnings from that practice. It is obviously in the buyer’s best interest to negotiate the lowest sale price possible. However, when a suitable practice does become available that meets the buyer’s requirements haggling excessively or irrationally may lead to ultimately losing that practice. It can also alienate the vendor and if they do accept the offer make the transition particularly difficult.
Purchasing a dental practice business is different to purchasing items such as a television or car. There are several reasons for this but perhaps the most important is around the limited supply of dental practices and suitability of the buyer to the practice. Not every practice is suitable for every dentist and many dentists spend years trying to find the right practice for themselves. Further, currently there are many more buyers looking for dental practices than dental practices available for sale.
To summarise, before haggling consider if you’re willing to lose the practice.