Preparing To Sell A Dental Practice
Do you know what your practice is worth?
How much you can sell your dental practice for is largely affected by how well you prepare for a dental practice transition in the years preceding your sale. We have created a list of things to consider in order to prepare your dental practice for sale:
Work hard now & enjoy a relaxing future later
How much your dental practice valuates for is largely due to the trends your dental practice has shown for the past 2-5 years. If your dental practice has shown a steady increase in profit and patients over the past few years it is likely to sell for more than if your practice is stagnant or declining. For this reason, avoid slowing down or working less days prior to selling your dental practice. Try to ramp up your dental practice so that it is producing at its best right when selling.
Maximize your dental practice's efficiency
In order to show steady growth in your dental practice's profitability and patient base it is important to look at the efficiency of your office. Are there any areas of your dental practice that you can improve? Perhaps you can improve the way you are marketing and obtaining new patients or reactivating existing patients. Maybe you can streamline the scheduling process, improve collections or maximize the number of patients you see each day. Perhaps outdated equipment or software is limiting your dental practice's efficiency. Ask a dental practice transition specialist or employees you employ if they have any suggestions on ways that you can improve the efficiency of your dental practice.
Maintain accurate & up to date financial records
Many dental practice owners rely on their accountant to keep track of their financials. While this is not necessarily a bad thing, a CPA is only as good as the information they are given access to. Tracking your income and expenses through some financing software or good bookkeeping allows you to keep an eye on how your dental practice is performing on a more detailed level.
Create or improve your online presence
Having an active website in this day and age is crucial to both obtaining new customers as well as creating and maintaining a positive reputation for your dental practice. Monitoring your online presence also allows you to see what patients are saying about your practice and gives you a different perspective into your patient's experience.
Improve the appearance of your dental office
An important step in preparing your dental practice for sale is improving its appearance shortly before you list it. You should do a detailed inspection of your dental office and complete any aesthetic improvements that are overdue. Repaint or repair any walls that are aged or flawed. Replace any burnt out lights. Consider replacing some furnishings or equipment if your office is outdated. Ensure that your practice is clean, well lit, and inviting to your patients and to the potential buyers of your dental practice.
As you can see, preparing your dental practice for sale is an important part of any exit strategy. Remember that if you plan on selling a dental practice in the next 2-5 years start preparing right now. Focus on increasing the profitability of your practice along with increasing the number of new and active patients that visit your dental office. Then as the time approaches when you actually want to sale your dental practice, shift your attention to improving the aesthetic appeal and functionality of your practice. Contact an ADS member specialist today to answer any questions or concerns you might have about preparing your dental practice for sale. If you have questions to ask a dental broker, feel free to always reach out to us.