Sometimes documenting what you are NOT doing is as important as documenting what you ARE doing when it comes to increasing the value of your dental practice for potential buyers.
In our Practice Information Summary form, which is used in part to illustrate the value of a dental practice, there is the section titled ”Procedures Referred Out”. Over the years, we have noticed that most dental practices simply put a note in the patient chart, but do not actually record the referral to a specialist. Recording all referrals to specialists can be worth major bucks when you get ready to sell your practice. And it only takes a few clicks in Dentrix, Eaglesoft, Practice Works, Softdent and most other practice management systems in use today.
Here are actual estimates from one of the practices we assisted with their dental practice sale:
Procedures Referred Out:
Simple surgery 100%
Implant placement 100%
Perio surgery 100%
Third molar surgery 100%
The potential buyers of this practice just happened to be able to perform most endo, simple surgeries, implants, and most perio and third molar surgery. The practice sold for way above average because the buyers were able to estimate the value of these referred out procedures.
Assuming that their percentage of patients that would be retained during the transition would be above 90% (it was a perfect fit), they were confident that they would also be able to retain a very high percentage of the current procedures that were being referred out. They were absolutely right on the money!
The practice sold for 36% higher than average due to the buyers’ perceived value of the practice to them.
By making just a couple more clicks and recording your referrals, you may add a substantial amount to your selling price when the time comes for you to sell your practice.
For more information on this and more tips on “Getting Your Dental Practice Ready to Sell”, call or email us at 678-482-7305 or firstname.lastname@example.org or click here to subscribe to our free Dental Practice Seller’s Guide – a 6 part email series that will help you prepare your practice for sale.