At some point, most Sell My Dental Practice owners consider selling their business. Some do so as an exit strategy or a path to retirement, while others sell under duress or necessity. Regardless of the reason, there are many issues that must be taken into consideration to make the process as smooth as possible.
One of the most important decisions will be who to sell your practice to. It’s often in your best interest to work with a professional who can help you find buyers for your practice. They’ll also be able to assist you in structuring the deal and ensuring that your sale agreement is in line with your goals. Depending on your situation, you may wish to sell your practice to another dentist in your area, an existing dental office, a group practice or even a DSO.
When it comes to selecting a buyer, it is important to select someone who is either like-minded or can complement your strengths and weaknesses. Additionally, you want to be sure the buyer will be able to afford your asking price. Ultimately, the selection of a buyer should be based on both the financial terms and your comfort level with their management style.
The next step will be to establish a sales price. This can be done using various valuation methods and the help of your CPA, financial advisors or brokers. Some of the most common methods include:
Generally, your dentist practice is only worth what a potential buyer is willing to pay for it. Unfortunately, you can’t base the value of your practice on averages or observing what your competitor down the street recently sold theirs for. A more accurate approach is to perform a fee and/or practice analysis to see where you stand in relation to the percentile of your region. If you’re well below average, you should consider increasing your fees. This will not only increase your profit margin, but it will also enhance the value of your practice.
A buyer will also take into account the impact of your sale on your patients. Depending on the purchase agreement, you may be required to continue treating patients through a transition period to ensure patient retention. In these cases, you should work with your team to develop a plan for educating and communicating the change with your patients.
It’s important to begin preparing your dental practice for sale early on. This will allow you to maximize your selling price and ensure a smooth and seamless transition for both you and your patients. The best way to do this is to have a plan in place and start working with a professional to get your business in shape to attract qualified buyers. Don’t wait until you’re ready to retire or are forced to sell due to circumstances out of your control. If you do, you could miss out on a substantial windfall.