Menlo Dental Transitions is a dental practice brokerage headquartered in Tempe, Ariz. We provide resources to aid dentists through the practice buying process.
Click here to watch a video presented by David Haynes, MBA, a former lender and current Vice President of National Practice Sales for Menlo Dental Transitions.
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Frequently Asked Questions
If you are just starting the buying process, your first step is to get pre-qualification from a lender. Once you obtain that, you can start searching for your ideal practice, go on tours and make an offer when you find the right fit.
Pre-qualification is an important first step. Lenders can help you gauge where you are at financially and if practice ownership is a feasible option for you. They can also help set parameters on the amount they can lend you, which can help you determine your practice budget.
Pre-qualification also shows a seller that you are a ready and able buyer. Many sellers will not share their confidential practice information with someone who has not been pre-qualified or cannot show proof of liquidable funds equal to the purchase price. Having a pre-qualification in place and ready to go can set you apart from other buyers in the marketplace.
Practice information is proprietary and confidential in nature. Confidentiality from all parties is something Menlo Dental Transitions takes seriously, and information about our listings will not be disclosed without an NDA on file.
The process can take anywhere from three months to several years from the time you pre-qualify with a lender and start searching for a practice. The timing depends on your desired location, how competitive the market is and how strong your offers are.
With Menlo Dental Transitions, the standard closing time from having your offer accepted to having keys in your hand is 30 to 60 days.
Not all sellers own their real estate, and many have signed leases with a landlord. Often, dentists who own their real estate decide not to sell their buildings at the same time as their practices, planning for their real estate to provide income during retirement. However, each seller has different plans, and this question can be addressed more specifically on a case-by-case basis.
Most sellers are willing to work back for a short period of time (i.e. on a part-time basis for one to three months) to assist with the transition, but few are willing to work back for more time than that. However, each seller has different plans, and this question can be addressed more specifically on a case-by-case basis.
Business loans are unlike home loans or personal loans. The bank will underwrite you and your new source of cash flow/income from the proposed practice purchase. You should speak with a bank that has a dental-specific program to ensure your offering is competitive with what other dentists are receiving.
A common loan structure includes 10-year amortization (repayment length), a fixed rate (typically in the 3-4% range), a personal guaranty, and collateral based on the practice.
Yes! An established dental lender will be accustomed to seeing hundreds of thousands of dollars in student debt. Obviously, lower debt is better for everyone, but having student debt alone will not preclude you from obtaining a business loan.
Many lenders will underwrite to your Income Base Repayment (IBR), or monthly payment, or they will amortize the balance over 20 years to establish your monthly obligation baseline. You should ask your lender if they have maximum thresholds for student debt payments and balances.
Visit our website to find our current listings. We typically update our listings page within 24 hours of any changes.
If you have any questions about specific listings, please email info@menlotransitions.com with the practice number you are inquiring about, and our administrative staff will answer your questions or connect you with the listing broker.
We can certainly connect you with dental lenders who are active in the current market. If you have previously been in contact with a team member at Menlo Dental Transitions, feel free to reach out to them for recommendations or email info@menlotransitions.com, and we will connect you with a lender.
We only represent sellers in transitions and do not provide dual representation. However, one of our main objectives is to facilitate smooth transactions for both parties, so we are happy to connect with you and provide resources like this website to achieve that goal.
For listings that we don't represent, we can offer third-party appraisals conducted by our two dental specialized Certified Valuation Analysts. Please visit our website for more information about our valuation services.