Should I tell my staff I am considering selling my practice?

Ask The Experts - Providing insight for commonly asked transition-related questions

Today's topic: Should I tell my staff I am considering selling my practice?

One of the most frequently asked questions we receive from dentists selling their practices, when should I tell my staff? Many feel like they're betraying their staff by keeping the sale a secret, however, telling them prematurely can damage morale and practice value. They may worry about job security and other unknowns and begin interviewing with other dentists. Because of their relationships with patients, your staff is one of the buyer's biggest assets, so it's important to retain them throughout the transition.

Prior to notifying the staff, you wanna be sure that the sale is going to occur. Therefore, we advise clients not to notify the staff until the following steps have occurred.

1. You have entered into a purchase and sale agreement with the buyer.
2. You have received a sizable, nonrefundable deposit.
3. The buyer has completed to his or her satisfaction, a due diligence review of the practice's assets, books, and accounts.
4. The buyer has received financial commitment from a lender if financing is a condition to the sale.
5. and finally, the buyer has entered into a satisfactory lease agreement with the landlord of the space in which the practice is located or in the alternative, a purchase and sale to purchase the real estate from the owner.

Staff notification could be weeks or days from the closing depending on how quickly the pre mentioned conditions have been satisfied. We often attend this meeting to assist or provide guidance on what to say and when to have the new buyer present.

Thanks for watching. For additional information on this topic or any other transition related questions, contact us at 877.365.6786.