5 Things You Should Know When Selling A Dental Practice
If you are thinking of selling your dental practice, you have probably already put a lot of thought into it. This transition of your life can feel overwhelming, but you must not let that get to you. Selling a dental practice is a big task that you should not downplay, no matter how much time you have had the idea.
As a dentist, you want to make sure that you are getting the best out of the transaction, without compromising your finances. You also want to ensure you are mentally prepared so that the process does not take a heavy toll on you.
How Do You Get Started?
At AFTCO dental, we encounter many dentists who are considering the option of selling their practice. However, the overbearing thoughts of the financial ramifications, as well as the undetermined retirement future, get most dentists worried. While this may not be exactly your case, it is important to be incredibly alert during AFTCO dental practice sales.
The initial step should be making the decision that you are ready for the transition. This puts you in a mental state where you are more accepting of the outcomes of your decision. Besides, you should never shy away from seeking help from AFTCO transition consultants near you, so that you do not have to figure out all the logistics by yourself.
Factors To Pay Attention To
Many things can affect how your sale turns out the last thing you want is to drain all your finances as you wait to attract a worthy buyer. To avoid the frustrations that come with the entire process, you must be keen on some factors that weigh in on your sale. They include:
- Timing of your sale – you have to start early to make a sale. Your small business as a dentist is not the only one that exists. Therefore, your dental practice will not sell in one night. Sometimes it takes months and other times years. Many dentists consider starting the process very close to their retirement plans. The problem with this is that you may need to compromise your lifestyle by scaling back before you make the sale. This process can take a toll on you if you are not prepared. It is why you must start considering the sale early enough.
- Be realistic with your expectations – it is undeniable that the dental practice means a lot to you. While you may have invested a lot of time and resources in building up the business, you need to be realistic about its worth. Find a balance between your expected price and the market price for dental practices. Remember that some of the assets you have have a depreciating value, which can impede the cost of the practice relative to the price that a buyer is willing to offer.
- Update the equipment – equipment is hard assets that will help get a high-ball offer on your dental practice. One easy way to appreciate the value of your dental practice is by keeping the equipment therein updated. This will close out any room for buyers to negotiate on the terms of outmoded equipment. Instead, you create a space where buyers will feel at ease purchasing your dental practice without incurring enormous capital expenses to run the business.
- Build organize systems – the buyers you are targeting will not buy your dental practice only to shut it down. They need to continue running it, with anticipated heightened profit margins. While that is not your concern, you should cater to the systems of your dental practice. Create functional systems that are organized and assure continuity. This includes building a solid organizational structure, financial system, and patient-acquisition systems. Such systems will appeal to buyers while promising you a good ROI.
- You may need to stick around after you make a sale – while you may be all set for retirement, it may not always be the case. The new owner of your practice may arrange to keep you on board for a short while. This ensures continuity of the business amidst a change of ownership. Therefore, as you plan your retirement, be ready to accommodate the needs of your buyer once you close the deal.