CATEGORY AUSTRALASIAN DENTIST 109 COLUMNISTS Accountant ready Many of us trust our accountants and value their advice, which is beneficial if they are experts in your specific profession. However, many accountants lack specialised knowledge and may not provide sound insights into the potential of a situation. For example, a dentist who is skilled in dental implants might find a general practice with a vibrant patient base of individuals over 60 years old, a group currently not targeted for implants. This opportunity could add $500,000 in revenue in the first year. Yet, a cautious accountant might jeopardise the deal by encouraging a buyer to request a $50,000 reduction in the sale price, not fully understanding the latent potential the transaction provides. The solution is to provide all advisors with every facet of the transaction and present your business in the best possible light by being the driver of that information. Private buyer ready When a private buyer is introduced, they will start asking questions about aspects of the business they understand. These questions might include: How much revenue does a particular procedure generate? Who in the business produces what revenue? How many customers do you have? How many new customers do you attract each month? You are likely familiar with these questions because they are the same ones you routinely ask about your own business. Answering all these questions can take weeks, as buyers may not ask them all at once, making the process painful and drawn out. Given that we know the type of questions a buyer will ask, collating this information upfront is a great idea. Plus, it can help distinguish genuine buyers from those who are just window shopping. Corporate buyer ready Selling to a corporate group can offer numerous benefits, the most significant being that they often pay substantially more for a business than a private buyer. However, you should anticipate a rigorous due diligence process. Your transaction will likely need approval from multiple parties, including external accounting firms. Completing the ‘Transaction Ready’ Due Diligence spreadsheets in advance of engaging with corporate buyers will not only expedite the transaction but also impress decision-makers and advisors evaluating your business. If you are considering selling to a corporate group, you may also want to consider our ‘Transaction Ready – Prospectus’ service and really grab their attention. Settlement ready Finding a buyer and agreeing on a deal is an exciting milestone. However, the excitement can quickly fade if, four months later, you’re still trying to finalise the sale while the buyer and their advisors request additional information. To help you become ‘Transaction Ready’ Aspect Legal have created a free checklist you can use as a guide to help you start collating all the information a buyer and their advisors will require. So, don’t get bogged down in due diligence – get ‘Transaction Ready’ today. u Carl Burroughs is one of the founders of Ray White Practice Sales and can be contacted on carl.burroughs@raywhite.com or 0416 190 000 if you need any help or advice with selling your dental or specialist practice. Joanna Oakey, is the managing partner at Aspect Legal and author of the best selling book, Buy – Grow – Exit. If you would like a copy of Joanna’s free ‘Transaction Ready’ check list, simply contact Joanna at joanna.oakey@aspectlegal.com.au or call 02 8006 0769 Joanna Oakey
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