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understand that the senior dentist’s own patients judge their clinical competence by non-clinical fac- tors, such as personality, gentle- ness, office appearance, etc. It is generally not possible to assess clinical competence until a year or more of actual clinical procedures performed by the new dentist are reviewed. Unless the transition is preceded by a period of employment prior to the actual ownership change, dollar value of that practice repre- sents a significant portion of their financial assets. For the new dentist, there is a definite value in acquiring the patient base that has taken the transitioning dentist years to devel- op and will provide an immediate and substantial cash flow. Patients’ evaluation of the new dentist Most senior dentists know and For most dentists, ownership of their dental practice is the major focus of their energy expenditures, financial situation and professional lives. Years of blood, sweat and tears, coupled with the relationships formed with both staff and patients, have caused dentists to form a deep-seated emotional attachment with their practice. For many, the senior dentists must understand they will not be able to address the clinical competence issue. Senior dentists must accept the fact that the only control they have over this subject is the fact that the new dentist has been tested and licensed. Determining the transition plan The first step in formulating a tran- sition plan involves an appraisal of the practice. The information gathered and evaluated during the appraisal process will aid in deter- mining available transition options. These options may include (1) an outright sale, (2) role reversal sale, (3) partnership, (4) merger or (5) production acquisition transac- tion. In addition, the appraisal will typically provide a comparison with other practices involved in transi- tions, thereby allowing an under- standing as to how salable this par- ticular opportunity might be. Finally, the appraisal should also provide ideas regarding enhancing the value of the practice and its desirability as a transition candi- date. Locating a competent transition consultant The next step is locating a compe- tent transition consultant. A transi- tion consultant is one who under- stands the entire transaction, the various types of transitions, con- tractual matters, the operational issues of running a dental practice and the need to have the rela- tionships of the buyer, seller, staff and patients intact after the deal is done. The best source for these indi- viduals is word-of-mouth referrals and/or recognized reputation. They may be a national or regional “tran- sition guru,” the dentist’s personal accountant or another accountant who restricts his/her practice to health-care providers and is famil- iar with the health-care transition field or an experienced local dental practice broker. Some of the dental supply com- panies also have knowledgeable consultants who have been assist- ing in transitions for years. The transition consultant will help the dentist identify various aspects of his/her transition. Ques- tions that need answers include the dentist’s financial ability to retire and his/her personal transition goals. For example, how long does the dentist wish to stay on as an associ- ate and/or remain available to aid in the transition process? What is Financial Matters DENTAL TRIBUNE | March 20108A This is part 2 of a two-part series on this topic Practice transition planning By Eugene Heller, DDS g DT page 10A AD