Dental practice transitions can require you to make some of the most important business decisions you will ever implement. The best way to preserve your practice equity, avoid unnecessary stress, prevent financial disaster and have an overall successful transition as your retirement from dentistry approaches is to be prepared and informed. In our twenty years of experience in dental transitions, we at SET have found that these are the ten most important questions to have answered before you sell your dental practice:
1. When is my target retirement date? Is the day I sell my practice the day I want to lay down the handpiece, or are these two separate dates?
2. In what stage is my practice functioning?
3. What is my current yearly production? Has it increased or declined in the last 5 years?
4. What production centers contribute highest to my revenues?
5. How efficient is my cost per patient in terms of time, overhead and revenue?
6. Have I maximized hygiene production?
7. What is the real percent overhead of the practice?
8. What will determine my compensation initially and a year after the sale?
9. How transferable is my practice?
10. What are the current dental demographics, both nationally and locally? Is it a Buyers’ Market or Sellers’ Market?
Knowing your business is vital when considering a transition. This will help you set realistic expectations and provide negotiating points. If you are not satisfied with your answers, consider hyper-growth the three years before you sell your practice.
Pete Newcomb, CEO
Did you like this article? Check out our other dental industry blog posts such as when to tell your employees your about a dental transition and do I need a help buying or selling a dental practice?
If you have any questions or would like additional information, please call us at 678-482-7305 or email at firstname.lastname@example.org