Should I Sell My Dental Practice: 5 Questions To Ask
This is a question that most practice owners come across at some point in their career. Considering selling your practice can be stressful, especially if you don’t have all of the information you need. At Professional Transition Strategies, we are here to provide you with that information and guide you through your transition. Here are some common questions asked and answered.
Do I have to sell my practice?
Every doctor that owns a practice should eventually plan to sell. With proper planning and assistance many will get paid well for their life’s work. Others will miss opportunities because of fear or misinformation, and net only a fraction of the worth of the practice. There are many steps that come before selling your practice that can help you prepare for this transition. You should considering selling, if not now, in the future, and plan for that sell far in advance so that you are able to get the best value for your practice.
When is the right time to sell?
There is no “right” time to sell a practice. However, you should try to set the sale of your practice as a carefully planned event. If you wait too long or a personal crisis dictates the sale, the sale becomes more difficult with greater risk of lost revenue. For best results, plan early so that you can control the outcome. The longer you wait, the opportunity to plan and direct the course of the sale diminishes.
What are my transition options?
You have several options for transitioning your practice. Some of your options are:
- Associate To Buy-In
There is a right kind of transition for everyone, and taking the time to understand each is the first step in making the best choice for you and your practice. You can learn more about the different kinds of transitions on our eBook!
How long will it take to sell my practice?
There is no set time when selling or transitioning a practice. For a practice in a major metro area it will normally take from 6-12 months. However, it may take as long as 3 years in smaller rural communities. The type of practice you are selling also plays a part in the time it takes to sell. For example, specialty practices may take longer or shorter depending on the practice and location.
What should I do to prepare?
The first step in preparing is to have a comprehensive Practice Appraisal conducted to determine ways to make your practice more profitable and valuable. At Professional Transition Strategies, we use the most effective method of calculating your practice’s worth by looking at both attributes and challenges and how they have impacted the success of the practice. Some of the factors used include:
- The practice’s location, visibility and population of city or town
- Type of medicine or dentistry, revenue sources, active patient base
- Growth potential
- Patient attraction and retention rates
- Reason for sale of practice
- Projected patient and revenue retention after the sale
- Condition and age of medical and dental equipment based on wear and tear as well as technical advancement
- Office décor and condition
- Long term trends of the practice’s revenue and profit margin
Take the time to get your practice and facility in the best financial and operational shape possible. Here are some ways to increase value:
- Offer Different Treatments
- Increase Top Line REvenue
- Lower Your Expenses
- Upgrade Your Facility
- Acquire Or Merge
Regardless of where you are at in the process of selling your practice, we are here to help. You can learn more about us and the process on ourwebsite or reach out to us at any time. To learn more about the services we can provide, go to our eBook!