1. How can I make my transition as Smooth and Worry-Free as possible?
Give Yourself Enough Time. The hardest and most difficult transition involves a sale that is forced because of health, financial, or other practice reasons. Often doctors are at a breaking point due to these external factors and must make significant concessions to make the transition work, which can impact your staff and your patients. With enough time, we can find the best fit for your practice, your staff, and your patients for the future. The best plan is to transition your practice when it is continuing to grow. Declining practices put questions in the buyer’s mind.
Be Available and Flexible. Understand that all dental transitions are not the same. Every buyer and seller have different needs and desires to make a transition work. The smoothest transition occurs when the buyer and seller work together to meet each other’s needs.
2. I want to sell my practice, How Long does the process take?
The short answer is: it depends on how much time you have. Some dentists spend one, two, or several years preparing their practice for sale. Once the decision to sell is made, the process can be as short as two months, but typically around six to twelve months. Some factors affecting this time-frame include the location and revenue of your practice, the needs of the buyer to leave their current position or become credentialed, and whether the seller will continue at the practice following the closing.
3. How Do You Value a dental practice?
Generally, we look at three factors to establish a practice’s value.
a. The value of the Practice Assets, including the equipment, supplies, and active patients.
b. The practice’s average annual Revenue (Collections).
c. The practice’s Profitability. Thus, to improve practice value, we advise our clients to continually work the recall system, collect accounts receivable, and maintain production levels.