Posted on Mar 11, 2013
Image Credit: © Dreamstime.com
Posted on Mar 11, 2013
My brother is a huge planner, but my spouse is incredibly spontaneous; this sometimes makes the agenda for a family reunion downright comical. Yet as I have gotten older, I have come to appreciate my brother’s thoroughness when thinking about the future. When we arrive, we have a tee time or we have a reservation and we get to try the latest chef’s culinary treats.
In the former example, the stakes are relatively low. When you are envisioning a dental practice transition, many doctors only start taking the appropriate steps after it is too late. Perhaps, you already have begun to transition, working half days on Fridays or spending a month away in the summer. Unfortunately, enjoying these deserved perks without having taken the required steps to best protect your capital and maximize your revenue when you sell your dental practice is dangerous because the stakes are much higher. Having a plan in place and taking steps in an intentional order makes for an easier dental practice transition.
The first phase is a good time to get out your calendar. I spent some time in Texas and in an ideal world, you want to be there in March or October; but if at all possible, you want to avoid 100-degree-days-at-a time weather in August. Timing your dental practice transition relies on the same principle. You want to start the process of selling your dental practice about two to five years prior to retirement. This provides time to find a buyer, and leaves room for a period of time when you’re still active in the practice (perhaps just to a lesser degree). Again, we’re aiming for the sweet spot when the practice is still flourishing.
A dental practice valuation is the linchpin of phase two. Acquiring a clear view of the practice is integral to knowing how and when to best sell your dental practice. At this point, an NAPB dental practice broker is your guide within phase two. Reach out to friends and professional associates to find a dental practice broker verses in appraisals. If you’re not quite ready to sell, a dental practice valuation may seem premature. That’s not necessarily the case. Often, a dental broker is also willing to update the dental practice appraisal later so it’s a win-win—you get a sense of what you could receive if you sell today, and you can make improvements and take actions to increase the price before you actually sell your dental practice.
You created a timeline, have a clear sense of value in the practice, and now it’s time to sell. During this phase, your dental practice broker is vital because it’s time to find the appropriate buyer. Having taken the time to plan and value your practice will really pay off when you sell your dental practice.