Building up a dental practice is no easy feat. Practice owners have a variety of responsibilities and obligations in addition to practicing their specialty, and the work you have done contributes quite a bit of value to what your business is worth. For most practice owners, their business is their largest asset—so if you’re ready to embark on the next chapter of your life, it is important to properly prepare to sell your dental practice so you can ensure you get the most out of it.
Taking the Steps to Start the Sell of Your Dental Practice
- Start the Planning Process Early
The sale of any business is a major transaction, and the sale of a dental practice is no different. Ideally, you will have already worked with your financial planner to establish an exit plan well in advance, but even if you haven’t, it is not too late! If you are thinking about a transition, meet with your planner to discuss your assets, retirement plans, and investment options first. This way you can develop a realistic timeline for the transition and ensure that you are setting yourself and your family up for the future beyond your business.
- Get a Comprehensive Valuation
Getting an accurate idea of what your practice is worth will help you understand how much you can realistically expect from a sale. There is a lot that goes into the valuation of a dental practice, including the number of new patients you get, the staff you retain, and your overall profits. Getting a valuation from a reputable broker will be key to understanding exactly what buyers will be willing to pay for the practice you have built.
- Keep Processes Up to Date
One thing that buyers will look for as they evaluate their purchase options is how much heavy lifting they will need to do right after acquiring the business. Keeping things running as usual and updating processes as necessary will ensure that whoever you hand over the keys to will feel capable and confident in their purchase—which can easily translate to a higher purchase price.
- Think About Your Ideal Transition
Business sales are rarely an open-and-shut case, especially when it comes to the sale of a dental practice. Oftentimes, the previous owners will include a transition plan in the sale contract, agreeing to stay on in a part-time or consultant role for a set period of time in order to help operations continue seamlessly. As you think about the transition of your practice, consider what you might want this to look like—while you may be ready to shut the book entirely, offering to stay on for a few months’ time may result in a higher payout in the long run.
- Consider Hiring An Exit Planner
Facilitating the sale of a business is a complicated process, but working with a Certified Exit Planner can help streamline it tremendously. An exit planner can help you protect and grow your business in the time you own it, and will also help you put a plan in place so you can exit when you want to for the amount you desire. Additionally, exit planners can help with the trickier aspects of a sale such as tax planning and transition mapping so you have less on your plate when you’re ready to facilitate the sale.
If you are ready to begin planning your exit from your dental practice, we are here to help! We can ensure that you and your business are set up for success in the future—contact us today to get started.