Do I Have to Sign a Listing Agreement to Sell My Dental Practice?

When a dentist decides it’s time to sell their practice, one of the first steps in working with a dental practice broker is signing a listing agreement. Many doctors wonder, Do I have to sign a listing agreement? This blog post will explain what a listing agreement is and why it’s important to your success.

What Is a Listing Agreement?

A listing agreement is a binding contract between you and the brokerage that gives them exclusive rights to represent you and your practice. In other words, a listing agreement is a promise that the seller will compensate the broker if the practice sells, but payment is deferred until the sale is completed.

What Does a Listing Agreement Include?

A listing agreement outlines specific terms such as:

Length of the contract: How long the agreement will be in place.

Responsibilities: A detailed list of what both the seller and the broker are responsible for.

Brokerage fees: The compensation the broker will receive once the practice is sold.

It’s highly recommended to review the agreement with your lawyer and discuss any verbiage you’d like to change with the broker before signing.

Benefits of Signing a Listing Agreement

Signing a listing agreement protects both you and your broker. It empowers the broker to invest significant time and resources into marketing your practice, knowing that their efforts will be compensated. Additionally, a listing agreement prevents confusion among potential buyers. If multiple brokers—or even the seller themselves—try to sell the practice at the same time, it can create a chaotic experience.

By signing the agreement, you benefit from your broker’s experience, network, and dedicated time, ensuring the sale is handled professionally and efficiently.

What Happens After Signing?

Once the agreement is signed, the broker will ask for detailed information about your practice, including financial, patient, employee, and real estate details. Their team will conduct a financial analysis to determine the best sales price. They will then take professional photos and create a comprehensive prospectus that outlines all relevant information for potential buyers.

From there, the marketing process begins. Your practice will be advertised on the broker’s website, third-party listing sites, social media, and email campaigns. Additionally, the broker will leverage their network to reach qualified buyers. All leads will be required to sign a non-disclosure agreement before they gain access to sensitive information about your practice, protecting your privacy.

By understanding the role of a listing agreement, you can make informed decisions as you start your practice’s selling journey. 

Ready to take the first steps to sell your practice? Request a confidential consultation with one of our experienced dental practice brokers.