Posted on Sep 23, 2013
Image Credit: © Dreamstime.com
Posted on Sep 23, 2013
In Part I, building a checklist and working with a dental practice brokerage to come up with a winning marketing and selling strategy.
Make It a Team Effort
The best way to achieve a successful sale of a dental practice is to have a thorough plan. Dental practice brokerages will assist with the details in advance of the anticipated sales date.
Perhaps the greatest benefit of working with a dental practice broker is that you can maintain your focus on your own patients and practice.
Communicating Effectively with a Broker
Effective communication is the key to maximizing your selling experience, and it can help you build a substantial relationship with a dental practice brokerage. While big data is a hot topic, pertinent information, communicated to a broker, needs to specify your wishes and expectations. With that in mind, we put together some suggestions for your checklist:
When do you want to sell your business?
Think about a specific date that fits your timeline, and consider that setting a later sales date will allow for more detailed planning today.
Why do you want to sell your practice?
The majority of sellers do so in order to retire. However, a practice could be sold for other financial reasons, such as financing another business opportunity. Remember that the business is an asset; there are several options to consider even if the objective is retirement.
Is your dental practice fiscally fit?
Is it time for a check-up? A lot of small businesses prepare their financial statements to minimize owners’ tax liability. It is vital that your financials reflect true earnings to maximize the value of the practice. Make sure that your financials show true earnings.
What is your selling price?
Determining a selling price of a medical practice is a complicated proposition, and there are tangible and intangible variables to consider. The value of your practice is largely determined by financial statements, tax returns, and potential future opportunity. Comparing marketing and advertising efforts with your current demographic may also offer some insight into the value of your practice.
A key issue to consider before selling your dental practice is the impact the sale will have on your key employees. Be fair, open and honest about your decisions. It is important to communicate clearly with the people that are going to feel the initial impact of this transaction. It is a sensitive issue that requires delicate handling.