You receive a letter in the mail, an email in your inbox from a dental service organization (DSO) or individual looking to purchase your dental practice. All those zeros in front of you can seem appealing enough to entertain. While it can be tempting to take the first offer on the table and transition out of your dental practice, especially an offer that seemingly comes out of the blue, Professional Transition Strategies Founder and President Kyle Francis said on a recent episode of the Productive Dentist Academy podcast that can be one of the biggest mistakes. Here’s a recap of his conversation with host Regan Robertson.
Shop around
Even if a transition wasn’t previously on your radar, receiving a letter of intent can be what you need to know what your dental practice is worth. That’s when you can put your dental practice on the market to see what else is out there and put you in control, switching the power dynamic. Then, with the help of a dental practice broker, you can outline your options on a scorecard of qualitative and quantitative data points, pros and cons for each. Essentially, you’re setting up your own comparables. Even if you don’t end up selling, you still know what options are available when the time comes.
Know your worth
One thing is for sure, and that’s knowing what your dental practice is worth before you’re ready to sell. This will help you determine what improvements need to be made to increase the value of your dental practice. A dental practice broker can help you take the emotions out of your process by helping you decide what really needs to be done. Is there anything you’re doing daily that’s decreasing the value of your dental practice? This could be the difference between millions of dollars to the final value of your dental practice when you’re ready to make that transition.
Plan ahead
Ask yourself what you want out of life after selling your dental practice. “Everybody has different goals and what it is they’re trying to figure out in the long run and sometimes that’s more financial, sometimes that’s more emotional, sometimes that’s more operational, it kind of depends on the person,” Francis said. It’s often the basis of “founder’s syndrome,” Francis added, and acknowledging this will help you make better business decisions and decide what really matters. Did you do everything you could, personally and professionally?
Bottom line
Selling your dental practice is arguably one of the largest financial decisions of your life. Don’t go it alone. Contact the experts at Professional Transition Strategies to guide you through the process.