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When Price Becomes the 900-Pound Gorilla in the Room

When you or your representative negotiates the sale of your practice, you will very likely run into heavy resistance when the topic turns to purchase price. Your asking price, supported by a valuation report, may be more than reasonable. Still, it seems price can easily turn into a gorilla sitting between you and a prospective buyer.

How do you move the issue of price to the back burner, so you can successfully complete the transaction?

Pros in the business, including dentists who have sold a number of practices on their terms during their dental careers, understand a prospective buyer will only commit to a purchase if the perceived value of the practice exceeds the purchase price.

As a result, savvy dentists use sale negotiations as a means to increase the perceived value of their practice. They put themselves into the shoes of the prospective buyer to determine his or her key goals.

Is the purchaser looking for a trial associateship, mentoring opportunity, job for a spouse, or perhaps help with financing the practice purchase? Solving these key issues to the purchaser’s satisfaction will increase the perceived value of your practice, thereby removing price as the central issue.

As long as the amount being asked is fair, price will only become a deal breaker if you fail to sufficiently raise the perceived value of your practice. Rather than attempting to browbeat a purchaser into accepting the deal on your terms, try instead to understand the person sitting across from you and devise your negotiation strategies accordingly.

Respond to the purchaser’s needs, and price will no longer be an obstacle.

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