How Xite Transitions Sold a Rural-Area Dental Practice for Over Asking Price
Are you considering selling your dental practice but don't have the right team in place to support you? Are you nervous that buyers won't see your listing and you'll have to drop your asking price to get it noticed? Your dental practice transition experience doesn't have to be that way. In this case study, we'll discover how Dr. Nicole Coconu used Xite Transitions to sell her rural-area dental office and get an offer over asking price.
Meet Dr. Coconu
Nicole Coconu, DDS, had established a successful dental practice in Guymon, Oklahoma, with a loyal and growing patient base and was producing upwards of $1 million annually.
Dr. Coconu's husband's career was transferring their family to Houston, Texas, which meant Dr. Coconu needed to part with her flagship dental practice.
How Dr. Coconu Leveraged Xite Transitions
Without Xite Transitions, Dr. Coconu would have had to hire a law firm, marketing agency, demographics company, and a real estate services provider that specializes in dental transitions. She would have had to manage these independent teams and ensure all parties were communicating with one another.
Instead, Dr. Coconu brought Xite Transitions onboard with three goals in mind:
Identify a buyer for her rural-area practice.
Maximize her profit from the sale of her dental office.
Ensure the transitions team collaborated to minimize communication inefficiencies and vendor fees.
Even though Dr. Coconu's 2,200 square-foot dental office has five fully equipped operatories and room for growth with five plumbed operatories, the listing could be overlooked because it's in a rural area.
Xite Transitions was able to identify an appropriate trade area to calculate an attractive 1 : 6,433 competition ratio.
Dr. Coconu's office was an hour and a half away from the nearest larger town; however, the office is centrally located, surrounded by neighborhoods, shopping centers, and local businesses. There is only one other dental office within a five-mile radius.
Through its proprietary database of dentists and strong DSO relationships, Xite Transitions was able to identify a buyer from Iowa who recognized the potential of this office, optical location of the building, and loyal, established – and growing – patient base.
Xite Transitions is trusted for its ability to deliver data-driven analyses. This allows buyers and sellers to move forward with confidence and assuredness in their decisions.
"I enjoyed working with Tommy Newton at Xite Transitions because he and his team were always responsive and took the time to educate me on the best strategies for selling my practice. I always felt like they had my best interest at heart and they were willing to put in the extra work to get the right buyer and the best deal for me."
Dr. Nicole Coconu
Dr. Coconu's asking price was $900,000 for her dental practice transitions; however, Xite Transitions was able to deliver an offer of $1,050,000.
In order to satisfy the buyer's lender, Xite Transitions was able to work out a creative deal structure and unique asset purchase agreement (APA) that allowed the buyer to acquire and start work in the practice before closing on the real estate. Since Dr. Coconu used Xite Transition's internal legal team, she was able to avoid incurring additional attorney fees.
Identified and closed a buyer for a rural-area practice.
Received an offer 17% above asking price.
Satisfied both the buyer's lender and the seller through a creative deal structure.
Instilled confidence in the buyer with evidence-based data.
"One key differentiator is our real estate experience. In this case, we were able to formulate a creative deal structure where the practice closed before the real estate. Typically, a sale or assignment of lease presents challenges in practice acquisitions, but not with us."
Tommy Newton, Principal
About Xite Transitions
Xite Transitions specializes in selling dental practices with the power of its in-house team working together: legal, marketing, demographics, and real estate, which creates optimal and effective dental practice transitions.