Selling your dental practice is an emotional decision that every owner faces at some point. The sum of your life’s work is suddenly in the palm of your hand, and letting that go can be difficult.
If you’ve recently thought, “It’s time to sell my dentist office,” there are a few factors to ponder before signing the dotted line. Here are some considerations that indicate it’s time to sell your practice.
You’re Financially Comfortable
Before retiring, take a look at your pension plan. Is it funded to a point that you feel comfortable retiring with that as an income? If so, now is the time to start the selling process.
Remember that once you retire, you’re no longer bringing in revenue. A good rule of thumb is that your pension is fully funded enough to support your lifestyle until you’re ninety years old.
Financial stability and comfort is the most important thing to consider before letting someone else run your practice. If your pension is not fully funded, selling will have to wait.
You’re Burned Out
After graduation, you were eager to take on the world and open your own practice. But as time progressed, the pressures of owning a business, personal goals, student loans, and lack of control have surmounted your original enthusiasm.
At some point, your mental and physical health will suffer. If you find yourself emotionally or physically drained, it might be time for a lifestyle change.
Sometimes, moving on is the next best step, but don’t forget about your pension. It may not be time to leave dentistry or the workforce altogether without a sustainable income. Perhaps it’s just time to start fresh in something else.
I’m Ready to Sell My Dentist Office. How Much Money Do I Need for Retirement?
This is a common question sellers ask before handing over their business. Unfortunately, strictly relying on the profit from the sale of your practice will not solidify your future. It’s likely that the return will fall short of the of $1.5M+ most people need to retire. Don’t forget you’ll also get knocked by federal, state, and income taxes.
Here’s an example to demonstrate valuation and how it fits in to your retirement equation: You can predict your production income in fifteen years by multiplying your annual production by the fifteen-year factor (1.56). If your practice currently produces $800,000 per year, it will generate $1.2M fifteen years from now. You can understand your practice’s value for the same time frame by taking 60% of yearly production.
With a few simple calculations and tax deductions, the path to your future is crystal clear. If the results put you in a confident place to sell, work with a transition specialist. US Dental Transitions was founded by a dentist with more than 25 years of experience, so we truly understand the complex, emotional and financial ramifications of perhaps the biggest change in the life of a practitioner. If you intend to continue your legacy by selling to a dentist who will honor your desire to care for your patients and staff, we’re confident we can connect you with a buyer that can meet your selling criteria.
Contact us at 678-482-7305 or info@goUSDT.com. Any information shared will be kept in the utmost confidence.