Thinking of Selling? Do These 5 Things First…
When you’re ready to sell your dental practice, you want to be sure to get the best return for your years of investment and hard work.
When you’re ready to sell your dental practice, you want to be sure to get the best return for your years of investment and hard work.
1. Plan early
The preparation to sell will take longer than you think. This is particularly important if you’re looking to hit a ‘magic number’ before selling so that you have a certain level of income for your future.
2. Arrange a dental practice valuation
You should arrange a valuation of your practice as early as possible – ideally a few years before you’re thinking of selling. This should be a professional valuation, and not from your accountant. An independent valuation will consider your business from a different perspective. It will provide you with suggested changes to help increase the value of your practice – put them into action, they will serve you well in the future.
3. Decide on your exit horizon and work backwards
Having an exit date in mind will help you put your plan into action so you can maximise the value of your practice ready for when you sell. This is key if you’re timing your exit with retirement. Bear in mind, the type of buyer acquiring the practice will influence the post-sale arrangements as sales of larger practices to small groups or corporate operators will almost always require you to be tied to the practice post-sale for between 2-5 years.
For some principals, ensuring the continuity of their legacy for patients and team members is a key consideration. If this is the case, this needs to be factored into your exit date.
4. Make changes early
Operational changes need time to embed to have an impact on the value of your practice. So take expert guidance, implement recommendations appropriately and timely to see the benefits.
5. Ensure you’re not overstaffed
This makes a big difference to your bottom line. Your expert valuation will be able to identify if you’re overstaffed and dental practice sales experts can show you the impact of this in terms of practice value.
Questions?
Book a valuation here or contact us to have a confidential chat about your future plans.
