“What is someone willing to pay for your practice and how can you affect that number?” ~Dr. Bruce B. Baird
What is your practice really worth?
A lot of docs have been asking me questions about selling their practice and the value of their practice. And let’s be honest, as much as we may enjoy dentistry and serving patients, none of us want to do this forever. Savvy business owners keep one eye on the horizon and ask “when can I retire, and how much can I get for my practice when I go to sell?”
The sad truth is most dentists are not able to sell their practices at a value that will support their lifestyle in retirement. So what happens? Where’s the disconnect?
Something a lot of people don’t understand is how the outside world looks at the value of their practice. For example, you may think if you increase your sales, then your practice will be worth more. Well, that’s true…as far as the revenue side. But what about debt and overhead?
I was a great example of this. I love the latest and greatest technology and I was always buying new technology and equipment. But all that costs money. I was thankfully able to out produce my need to spend money, but that is unusual. It’s so easy for us dentists to see what others are doing and say I want that. But you have to be careful that while chasing the lates and greatest you aren’t actually negatively impacting the overall value of your dental practice.
And that’s just one example. The truth is, there’s not any one thing that determines the value of your practice. There are many, many things. And if you’re wanting to sell, then there is no time like the present to get a good handle on understanding the true value of your dental practice so you can grow that value into a number that will support your future.
I believe every dentist deserves to have a practice that is high-value, so today I’m digging into what:
- Someone would be willing to pay for your practice
- How to determine what your practice is really worth when you look at production & income vs. debt & expenses
- Numbers and areas you can look at to increase your practice’s value
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https://productivedentist.com/podcasts/the-productive-dentist-podcast/episode-121-requested-replay-what-is-the-value-of-your-dental-practice/
What is the Value of Your Dental Practice?