After years of investment and careful management, you are ready to sell your dental practice. We understand parting with your most valuable professional asset can be difficult and hope these 5 tips serve as a helpful guide as your venture into selling your dental practice!
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1. Strategize Your Exit
Selling your dental practice is one of the biggest decisions you can make. Time, money, and hard work has gone into building your practice, but now you may be thinking it’s time to transition to another adventure. It’s imperative that you plan out your exit strategy. Knowing where you’d like to be by a certain time in the selling process, and what you’d like to get in return for your practice are key steps in planning out your practice sale. Consult with experts and nail down goals before diving deeper into the logistics.
2. Get Your Team Ready
Dental practice transitions are complex procedures requiring a host of legal, financial and professional considerations. Having a team of experts ready as you prepare to transition your practice will help smooth the process and minimize the chance of overlooking critical factors. This team most often consists of a Broker, CPA/Accountant and an Attorney. Keeping each of these experts informed throughout the sale of your dental practice will position you for success. If you’re unsure of where to begin, our team of experts are happy to answer your questions. Contact a member of our team today!
3. Obtain a Practice Valuation
A practice valuation is the foundation on which the best deals are built. The valuation of your practice provides buyers/sellers with a firm starting point in negotiations, as it provides an objective look at the value of your dental practice. A accurate valuation dives into four main accounting methods and looks at your practice earnings, cash flow, sales, and summation of assets. It’s vital to have your practice valuation completed by an expert in the industry, such as a Broker or Accountant, who understands the current market place for practice sales.
Before getting a practice valuation, insure you’re getting the most for your practice by downloading our free 13 Tips to Increase Your Practice Value!
4. Maintain your numbers and market your practice
Often practice owners and/or doctors will begin to slow down before retirement. Maintaining the growth rate of your practice will result not only in greater profit, but the best possible outcome for your practice value. Doctors who place an emphasis on new patient numbers increase their practice vitality and position themselves to get the most from their practice.
5. Due diligence
A practice owner exercises due diligence by walking through an appraisal and/or answering specific questions about the practice’s assets, liabilities, and commercial potential for the buyer. A myriad of information is often requested and gathering that information can be time consuming. Having patient information, past tax returns, and staffing breakdowns readily available will aid in communication and an overall smoother transition of your practice when you’re ready to sell.
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Thinking through these 5 Things You Need to Know Before Selling Your Practice will help set you on the right path as your venture into selling your practice. Contact an expert today for more information or with any questions you may have, and let our professionals walk you through your practice transition today!
To take the next step in selling your practice, download our 13 Tips to Increase Your Practice Value, and get the most out of your practice!