With Winter around the corner, a lot of people are doing some spring clean up. And more and more dentists have decided to sell their practices. Just take a look at www.DentalPlace.ca to see current opportunities in Toronto, Hamilton, Ottawa, Mississauga and more! Also make sure to register on www.DentalPlace.ca.
Over the past few months, we’ve seen more and more people try to become real estate salespeople to broker the sale of dental practices. Accountants. Consultants. Lawyers. Dental Supply People. Those in Academia. And let’s not forget: Dentists themselves!
So what’s going on? Well, what happens when you have a small group of real estate salespeople who have been historically charging sellers 10% commissions in a seller’s market? Answer: you get competition. People want in on the action. They see hundreds of thousands of dollars worth of commission being paid by dentists.
But that so-called action is the seller dentist’s livelihood. It’s their retirement. It’s their hard work. And the services provided by a real estate salesperson or broker is NOT worth 10%.
But doesn’t DMC LLP broker deals too? Isn’t that we went out on a limb and started dentalplace.ca in November when everyone was too afraid to disrupt ‘a good thing going on for the established real estate salespeople? Well, actually, the way it got started was a few of our clients didn’t want to pay 10% commissions and asked if we had any buyer clients. And we did. And it worked out. Then we asked: why couldn’t we advertise the sale of a dental practice more generally? And it turns out: lawyers are allowed to do that (accountants, consultants, etc. are NOT).
And then came the real kicker: since lawyers do all the legal work to prepare and sell a dental practice, why would you even need to use a real estate salesperson? What is the value that they bring to the table? An appraisal? An open house? Trying to draft important legal documents without understand all the various legal ramifications? I think putting together a boilerplate appraisal and conducting an open house to attract prospective buyers (and everyone out there is a prospective buyer) has a limited value. And it sure isn’t 10% of the purchase price!
Call us what you will, but we at DMC LLP actually don’t like to call ourselves “brokers”. We like to call ourselves “LAWYERS who care about dentists”. We help dentists prepare (sometimes years in advance), market and sell their dental practice in a way that gets the dentist everything they want: legal protection from the beginning, a solid foundation of knowledge of expertise, and huge savings while (hopefully) selling for a very nice price. We make sure our clients have their Wills and Powers of Attorney up to date, try to put their staff on notice / have employment contracts, and deal with nasty leases that can cost dentists tens of thousands (if not more) when it comes time to sell their practice. We also make things very transparent along the way: we educate sellers, prepare standard Letters of Intent for prospective buyers (so they don’t have to worry about drafting anything themselves), and conduct an open house looking for the ideal match. Our reputation and credibility hinge on us doing an exceptional job on all of these fronts. And so far, dentists tell us we’re doing outstanding 😉
Often we get asked: but don’t lawyers just sit behind a desk and wait to do the transnational work? What do you guys know about marketing? Actually, we are quite good at marketing. And I don’t have to spend too much time convincing you. All you need to do is subscribe to our eBlast list, download our eBook, or visit one of our 3 websites dedicated to helping educate / protect / make and save dentists money: www.DentistLawyers.ca, www.DentistLegalForms.com, and www.DentalPlace.ca. And that’s just the online marketing that we do. To get an idea of the offline marketing we do, check out one of the many, many presentations and social events we’ve done.
So if you’re thinking about selling your practice, I’d encourage you to contact us, download our free eBook (Ontario Dental Law – which you can get by clicking on the top right corner of this page), and check out our latest news and events. You’ll also want to subscribe (above, top right corner) to stay up to date on all the latest legal and other developments in the dental industry.
From all of us at DMC LLP: you’re welcome 😉
We have just listed a new Toronto dental practice (general practice) for sale on www.DentalPlace.ca! REFERENCE #108. Click on the link above or the image below to get more information. You can also register on www.DentalPlace.ca to download the appraisal, see the seller’s address, and schedule your appointment for an open house.
We have just listed a new Toronto Prostho / Perio Practice for sale on www.DentalPlace.ca! Reference #110. Click on the link above or the image below to get more information. You can also register on www.DentalPlace.ca to download the appraisal, see the seller’s address, and schedule your appointment for an open house.
Perhaps… But I predict that they won’t have the same presence as they have historically. Why? Because there’s been a longstanding disconnect between their compensation and their services that is unsustainable. We’re seeing real estate salespeople struggle for the first time in a long time; they’re reducing their fees for doing an appraisal, they’re facing increased competition for preparing appraisals (e.g. we recommend Matt Bladowski of Dental Strategy), and they’re facing increased competition for advertising the sale of dental practices and putting buyers / sellers together (e.g. DMC LLP and DentalPlace.ca). This is in addition to trying to compete in an already small marketplace. These permanent pressures will no doubt cause them to have to become more competitive. They can’t justify their 10% fees by saying things like:
Now, we’ve all seen disruption in other industries that results in the established middlemen being relegated to the sidelines. Here are some examples: Netflix (disrupting TV networks / broadcasters), Uber (disrupting the taxicab industry), Tesla (disrupting the energy / space / automotive industries), RedTag (disrupting travel agencies), LinkedIn (disrupting recruitment agencies), etc.
So where will that leave real estate salespeople? I believe they will try some new things (e.g. representing purchasers, reducing their commissions significantly, offering more services – like practice management services, etc.) in an effort to be relevant. If they are able to survive the paradigm shift, they won’t look like they do today or have for the past many years. And here’s the best part: the monopoly they once enjoyed will be broken and dentists will benefit from the increased competition. You’re welcome 😉
David Mayzel is your legal risk manager. He is a trained courtroom lawyer and has spent many years resolving disputes both in and out of court. He knows how to prepare documents and execute transactions in a way that avoids or mitigates legal risks. He can be reached at 416.528.5280. or firstname.lastname@example.org.
Michael Carabash is your business law adviser. He is an entrepreneur at heart who helps you see the big legal picture. He drafts clear and effective agreements that protect your rights while promoting your interests. He can be reached at 647.680.9530. or email@example.com.
Ljubica Durlovska is your transition lawyer. She helps you with staff and associates, maintaining your corporation, and other business matters. She can be reached at 416.443.9280, extension 206 or firstname.lastname@example.org.
Jonathan Borrelli is your employment lawyer. He helps you with staff and associates matters, including hirings, terminations, switching staff to written contracts and resolving disputes. He can be reached at 416.443.9280, extension 204 or email@example.com.
Benjamin Kong is an experienced business law clerk. He assists David and Michael with corporate matters and purchase / sale transactions. He can be reached at 416.443.9280, extension 207 or firstname.lastname@example.org.
Julie Whitehouse is an experienced business law clerk. She assists David and Michael with corporate matters and purchase / sale transactions. She can be reached at 416.443.9280, extension 203 or email@example.com.
David, Michael, Ljubica, Jonathan, Ben and Julie are a truly dynamic team. Their diverse knowledge, skills, and experiences will help you get the best deal possible while promoting your interests and protecting your rights. You can read dentist testimonials here.