Posted on Mar 25, 2013
Image Credit: © Dreamstime.com
Posted on Mar 25, 2013
You’ve found a NAPB dental practice broker and with their help listed your dental practice. Your broker’s marketing strategy is working and a few buyers have looked over the dental practice valuation, visited the physical property, and one buyer seems to be inclined to make an offer when suddenly they shift into reverse and walk away. This can be aggravating for all parties. So, how can you be proactive as far as a taking on a buyer-mentality when selling your dental practice?
Giving yourself adequate lead-time before selling your dental practice is my key suggestion. An experienced NAPB dental practice broker can assist with the timing of the sale, and they also can help you view the practice through a buyer’s perspective. I suggest paying attention to the following components:
1) Practice Earnings: Your prospective buyer wants to purchase a practice that is cash positive and so anything to improve your bottom line will increase the chances of receiving an offer. Typically, a buyer will be a younger doctor at the start of their career. These buyers want to confirm that the practice will produce enough capital to not only cover their operating costs, but also their salary and any debt (i.e. loans for their dental education) that they may bring to the table. Also, the ability for a buyer to secure financing is largely dependent on the healthy financial history of the practice.
To make the most of your practice earnings and highlight them in the best possible light, examine the practice’s expenses. Are you over-spending in any area? Cultivate profits. What can you do to keep your current patients happy and satisfied? Are you consistently bringing in new patients? Is there anything else you can do to augment revenue before selling your dental practice?
2) Location, Location, Location: Yes, city trumps country when it comes to a desirable dental practice location. Many buyers prefer a clean professional building or highly-visible office within a retail space. If your location leaves a lot to be desired, consider relocation if you have the lead-time. If not, do your best to capitalize on the assets of your current location.
3) First Impressions: I acknowledge it’s ironic that I’m mentioning first impressions last. Here’s the bottom line: your practice needs to look good. A buyer will struggle to envision taking on a thriving practice if they pull up to an old building without landscaping and walk into a lobby with furniture and decor reminiscent of 1980. Again, remember that your buyers are characteristically new to the scene. Most often, they are recent graduates comfortable with the latest equipment and technology.
Taking a few moments to consult with a dental practice transition broker can really help make the sale of your dental practice easier for everyone. In the next installment, we’ll examine additional ways to think like a buyer before selling your dental practice.