In order to exchange on a deal, a lot of matters must all align at the particular moment in time, says Lily Head
I often talk about how our sustainability is dependent on us continuing to earn the trust of dentists looking to sell and buy dental practices. After all, selling a dental practice is no small matter and our clients’ financial future often hinges on the financial outcome of the sale we broker with them.
Dentists have choices and I respect the fact that all my clients have taken the decision to trust our ability to help them ‘fulfil their business ambitions’.
Being a dental practice broker is so much more than ‘finding a buyer’. The period between agreeing a deal and exchanging on a practice is usually longer than the time it takes to find a buyer and agree a deal. In many transactions, the work really starts once a deal is agreed.
In order to exchange on a deal, a lot of matters must all align at the particular moment in time.
- All the due diligence is done
- The bank wants to lend the funds to the buyer
- The CQC registrations are all complete
- The lease or freehold arrangements are all agreed and in place
- The buyer still wants to buy
- The vendor still wants to sell.
These activities involve a whole bunch of people. The seller, the buyer, the solicitors (buyer, seller, landlord), the CQC and the lender must all be in complete agreement.
It is your broker who will work on your behalf with all those parties to get to that point. Your broker has the big picture view. Accountants, banks and solicitors are limited in who they can talk to directly in order to mitigate any conflict of interest.
Your broker is being paid by you. The broker should have demonstrated by that time that they have your best interests at heart, know their business and have earned the right to be trusted advisors, even though you may have only worked with them directly for a few months.
Delaying a deal
If you decide to delay a deal at exchange, then I would advise you only do it on the advice of your broker once you have disclosed in detail any rationale around why you think a delay may be to your advantage.
Just consider that delaying a deal could have the any or all the following consequences:
- The purchaser wants to renegotiate
- The purchaser withdraws
- The purchasers ‘safe to lend’ expires
- The CQC registrations expire
- There is a lengthy delay while all those parties get aligned again
- Your legal fees go up.
Please don’t be misled by the idea your broker only wants you to exchange for them to get paid. Of course they want to get paid, but our sustainability is dependent on our clients trusting us, and sharing that insight with their colleagues, family and friends.
We are only ever as good as the last deal we brokered.
For more information:
Lily Head Dental Practice Sales