Planning Dental Practice for Sale by Owner Can be Daunting. Take our Quiz to See if You’re Ready.
If you’re considering selling your dental practice without the help of a professional, take this quiz to make sure you’re both physically and mentally ready. The key is to be able to answer all these questions as “true.” If you go through the quiz and you have concerns, you may want to consult an ADS broker.
Want to Sell Your Dental Practice Without a Broker? Answer These Questions to Make Sure You’re Up for the Task
- There will be lots of buyers. I already have some in mind.
- I know what reports and financials are needed to provide to buyers and their lenders.
- I refer a decent number of procedures out. Buyers will see the potential and be willing to pay for the growth.
- I know what EBITDA is and why it is important to a practice valuation.
- Articles suggest that a revenue multiplier is the best way to value a practice.
- As a business owner, I need to make any normalizing adjustments.
- My labor costs and operating expenses are in line with the industry.
- My insurance plans are up to date and my fee schedule was recently updated.
- Annual production and collections are the most important things to buyers.
- Smaller practices are easy to sell because the buyer can grow them.
- Larger practices are easy to sell because there is so much cash flow.
- Student loan debt makes it impossible for buyers to get 100 percent financing.
- What will lenders need in order to underwrite the loan?
- Letting a prospect “shadow” you for a few days is a good idea and very common.
- After you accept an LOI, it’s a done deal.
- What is involved with due diligence and how long should that take?
- Is the accounts receivable part of the deal? I’m excluding the accounts receivable from the purchase.
- What happens to leased equipment in your office?
- Landlords are generally willing to create a new lease in your buyer’s name.
- I have an attorney who will prepare the purchase contracts.
Maximize Your Sale Price if You’re Planning a Dental Practice for Sale by Owner
The above list could go on and on as there are literally hundreds of questions and, depending on the answer, there could be many more. The goal is to maximize your sale price while selling your practice to someone who will take care of your staff, your patients, and your legacy.
To avoid a potentially costly mistake, take the time to speak with one of our experienced and competent brokers. We will be happy to help you answer any tough questions and guide you through a more confident, lucrative and as painless as possible sale.
Doug Sellan is a Transitions Consultant and is a member of PMA Practice Transitions.