Selling Your Practice: Talking with Jonathan Martin, CPA from McGill & Hill Group

In this installment of The Golden Age of Orthodontics, we are hosting Jonathan Martin, an expert assisting dentists during the transition phase of selling their practice. With a remarkable record of overseeing dental practice sales totaling more than a billion dollars, Jonathan imparts invaluable insights into the intricacies of selling your practice. He shares four essential elements determining the success or failure of an enticing offer to acquire your business. There’s never been a better time to be an orthodontist.   IN THIS EPISODE: [01:01] Introduction of People and Practice and its message and Jonathan Martin’s background.  [03:27] Jonathan describes how the economics have impacted the sale of dental practices and explains EBITDA in detail.  [11:09] What are favorable KPSs, and how cash comes into play on an offer. What things have changed in the last 12 months?  [15:39] How do cash, stock, hold-out money and seller financing impact your sale?  [22:00] What are the critical items to evaluate as you are looking at an offer to purchase your business?  [24:28] Jonathan discusses whether a seller would receive more money from a DSO or an OSO versus a private transaction.  [29:51] What should a Dr. do if they receive unsolicited offers from a DSO or an OSO?  [33:53] The bottom line is to do your due diligence and get professional help.    KEY TAKEAWAYS:  Inflation, labor costs and the interest rate rise have slowed down dental practice sales. Cash at closing, stock, holdback money and seller financing comprise the four components of an offer to purchase your practice. Hire a professional to look over the contract when you are selling your business.    RESOURCE LINKS People + Practice  - Website Dr. Sercan Akyalcin - Harvard Website Harvard Orthodontics Dentistry - Website Jonathan Martin - Website Jonathan Martin - Linkedin   BIO:  Jonathan joined McGill & Hill Group in September of 2005. He earned bachelor's degrees in both accounting and finance, and a Master of Accountancy degree from the University of North Carolina at Charlotte. Jonathan works with dentists and dental specialists across the United States assisting them with their transition needs, and speaks regularly at dental schools and study clubs. He is a member of the American Institute of Certified Public Accountants and the North Carolina Association of Certified Public Accountants.   QUOTES:  “If you are...