Choosing to sell a dental practice is a major decision and the transition can feel overwhelming. By doing some pre-planning, you will be prepared for the sales process and be positioned for the best possible sale. Here are three steps to take to help ensure the success of your dental practice transition is maximized before the sale!
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Organize Records
Make sure your financial records are up to date and include at least three years of tax returns. Ask your accountant to organize records so you can easily determine your actual overhead and profits accurately. Know the numbers of your patient base over the last 18 months, including total active patients and average number of new patients per month. The total active patient count is one of the principle metrics used to calculate practice value. Keep record of data about your facility (space, equipment) and current staff (benefits, compensation).
Make Improvements
Work on making improvements to records, equipment, operations, and your office space. Put yourself in a buyer’s shoes and take a look at your practice. Maintain accurate patient records as a purchaser will likely review the condition of these records. Reassess your fees and update your fee structure if needed. Service dental equipment as any poorly maintained equipment will result in a lower offer. Remove unused items and replace outdated equipment. Improve the appearance of your office by cleaning and redecorating to make a good first impression.
Hire a Team of Experts
The transition of your dental practice includes a lot of legal, fiscal, and professional considerations and gathering a team of industry experts will help to ensure a smooth transition and minimize pitfalls. Your team of professionals needs to include a least a CPA, attorney, and banker. Your experts need to have experience with practice transitions in the dental industry and understand the market for dental practice sales.
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It’s never too early to start planning for your transition. If you’re thinking about selling your practice, we would like to complete a free valuation of your practice. With over 25 years of experience, we have lead the industry in selling dental practices nationwide. Let us help ease your anxiety and provide peace of mind as you begin to sell your practice.
