From Hy's Desk: The Cost of Negotiating

Over the past 35 years, it’s amazed me at how often a buyer or seller loses focus on what’s really happening in a transition.

Recently, I completed a transaction that totaled over one million dollars. The practice is in a rural community and the deal almost fell apart because the seller would not pay the purchaser to collect the seller’s receivables after closing. If collected as anticipated there would be about $40,000 to forward. The seller was about to walk away from $1,000,000 for $4,000!

It’s worse for buyers, specifically those negotiating with a lender over an interest rate. The buyer spends months shopping to sometimes get a half-point lower rate. In one instance the savings equaled $2,100 over the loan’s seven years. Throughout this process, though, he is losing $50,000 of production a month. With an overhead of 60% the monthly net loss is $20,000!

This may look exaggerated, but it we see much worse. Perhaps it is that dentists work in a 3mm space and sometimes don’t see the big picture. As one client said, “You’re right, I am not seeing the big picture, but a 10% error in a 3mm space can be disastrous.” And he’s right! We want to help keep both buyers and sellers focused on the important issues so they don’t lose sight of the forest for the trees.


Hy Smith, MBA
Managing Member
ADS Florida, LLC

From Hy Smith's Desk: Money, Money, Money

It always amazes me how gullible people are when it comes to money making scams! By now we all have been exposed to the foreign get rich inheritance schemes. While watching a news program the other evening though, there was a report about a young Belgian man posing to be a wealthy heir to the Rothschild family. He circulated with the rich and famous using their money in a Ponzie scheme to stay in luxurious hotels, buy expensive cars and fly on private jets.

Yes, he got caught and did time for his crime, but there were a lot of innocent "wannabees“ that lost a lot of money before he ultimately was put out of business.

Scams come in many forms. Don’t let your practice transition become a victim.

Hy Smith, MBA
Managing Member
ADS Florida, LLC