Dentists who are considering the sale of their practice are likely to feel some hesitation in starting the process. It’s a very natural and understandable feeling. Like owning any business, not only is there sentimental value attached to the practice, but the selling process can take several months or even years of preparation and planning.
Dental consulting companies can help with selling and transitioning your practice. They are intimately familiar with the dental market and can help appraise your practice, so you receive the best possible selling price. An experienced dental advisor can alleviate many of the undesirable or difficult tasks associated with selling. Advisors utilize the best marketing resources along with their network of contacts to locate a variety of potential buyers.
Finding a transition advisor who you trust is critical. You want to make sure you find a knowledgeable dental advisor that will guide you through the process and give you the confidence to make the right decisions for your situation.
If you are a dentist interested in finding the best practice transition advisor, here are five questions to ask before your initial meeting:
1. What are your goals and expectations?
As a dentist, deciding to transition your practice is one of the most significant decisions you can make. Careful planning will yield the highest investment return from the sale of your practice. Whether you are looking to sell to a solo-practitioner or a group, it’s critical to have a high-level of understanding of what goes into the selling and transitioning process.
2. What are you looking for in a dental practice advisor?
Anyone can list a practice and advertise it. You will want to partner with a professional transition advisor who can guide you through all aspects of the sale – from the listing agreement to the closing. Working with a company that knows the processes can yield the highest valuation and sales price based on market trends.
By working with an advisor, they can help find the right buyer who understands your philosophy and ensures that the goodwill of the practice is sustained during and after the transition. It’s imperative that patients continue to experience the dental care they have grown to trust.
3. Do you know the current valuation of your dental practice?
What is the financial health of your practice? How many patients do you have and what are your overhead costs? Where do you want your practice to be before you sell? Have you taken an honest look at where your practice is currently?
Many dentists are unaware of the current value of their practice, so an accurate valuation can be difficult. There are many fundamental appraisal and valuation methods. Things to consider include: growth trends, location, staff, longevity, appearance, reputation, number of active patients, procedures offered, and more.
Here are the standard valuation methods used today:
• Net Asset Valuation Method
• Market-Based Valuation Method
• Income-based Practice Valuation Method
The valuation process can be complicated, so it takes an experienced team to work through the intricate details.
4. How will I know if it is the right time to sell my dental practice?
There are a few indicators to consider: change in revenue, tax implications, reduce stress load, family considerations, and many more. Perhaps most importantly, your physical ability and motivation to continue practicing. All of these are relevant and should be taken into consideration. The goal is to ultimately protect your valuable assets. Remember, it is never too early to build a plan.
5. What kind of transition do you see for your business?
Have you thought about what your ideal transition would look like? Do you want to sell and have a short transition period, or do you want to continue working with the dentist or group that you transition to? Many dentists love practicing dentistry, but they do not want the day-to-day responsibilities of managing the practice. A great dental transition advisor will analyze a customized solution based on your current valuation and goals. With early planning, an advisor can help you maintain your legacy and make the transition as smooth as possible for all parties involved.
To learn more about your options, consult with US Dental Transitions and visit our contact page.