Free Brokerage Services? Not so fast…
If you’re a dentist or veterinarian and considering selling your practice to a corporate group, DSO, or PE-backed consolidator, you’ve probably noticed that the landscape is full of “advisors” offering to guide you through the process. Some are excellent. Some, frankly, are not.
One of the biggest red flags I see — and something every seller should understand — is when a broker or advisor is touting “Free to you” services because their fee will be paid for by the buyer. Is this a “Get what you pay for” moment? Why would this matter? Lets discuss further.
The Conflict of Interest You Can’t Ignore
Here’s the issue: a true sell-side advisor works for you. Their job is to represent your interests — to help you find the right buyer, negotiate the best terms, and manage the process to a successful close.
But if that same “advisor” is being paid by the buyer (or by certain buyers but not others), their loyalties are compromised from the start. That’s not a small issue — that’s an immense conflict of interest.
Some corporate buyers and DSOs offer referral fees to brokers who introduce deals. Others don’t. And when that’s the case, it’s easy to imagine how an advisor’s recommendations might be influenced by who’s willing to cut them a check.
Would they really encourage you to talk to the best-fit buyer — or just the one who happens to pay them?
Not All Conflicts Are Disclosed
To make it worse, this compensation arrangement isn’t always transparent. Some brokers frame it as a “win-win” or a “finder’s fee,” but at the end of the day, if they’re being paid by the other side of the table, their incentives are misaligned with yours.
That means you could be getting steered toward a deal that’s easier or more lucrative for them, not necessarily better for you.
The Hidden Cost of “Free” Representation
Here’s another thing to watch out for: brokers who tell you there’s no fee because “the buyer will pay for it.”
Let’s be honest — if you’re considering that option, it’s probably because you’d like to save money. That’s understandable. But what you may not realize is that you’re paying for it anyway — just not in a way that’s disclosed to you.
That so-called “buyer-paid” fee comes out of the overall valuation or deal structure. It’s baked into the numbers behind the scenes. So while it feels like you’re getting representation for free, that cost is still being deducted from the value of your practice — one way or another.
And in some cases, that hidden fee being paid to your broker might actually be higher than what you would have paid them directly. So not only are you unknowingly covering the cost — you could be losing even more value in the process.
In short, there’s no such thing as selling your practice for free. You’ll pay for it either directly or indirectly. The only difference is whether you know about it.
The Question Every Seller Should Ask
When you’re interviewing a potential sell-side advisor, make this part of your very first conversation:
“How do you get paid — and by whom?”
A good advisor will answer that question clearly and confidently: they get paid by the seller, and only when the transaction closes. That’s the structure that ensures their incentives are aligned with yours.
If you get a fuzzy answer, or if you hear anything about the buyer paying them directly or through a referral fee — that’s your cue to investigate more and potentially walk away.
How Wicklow Handles This
At Wicklow Healthcare Advisory, our compensation structure is simple, transparent, and completely aligned with your interests.
Our fees are up front, fully disclosed, and paid by the seller — never by the buyer. By refusing referral fees or side arrangements from corporate groups, we stay completely uncompromised and focused on what matters most: your goals, your value, and your outcome.
In the end, you should get the best deal for you — not the best deal for your broker. Thinking about selling and want to learn more? Schedule a consultation today!
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