You've built up your dental practice for many years now and are ready or are required to sell. The decision to sell your dental practice is not one to be taken lightly and will affect you for years to come. Once you make the decision to sell your dental practice, here are some of the key considerations you should take into account when planning your dental practice transition:
- Is it the right time? - There are numerous reasons to sell: the need to overcome pressures, to improve your bottom line, pursue other interests, change of scenery, limited or no future in current position, health concerns, reduce frustrations, relocation, or retirement. If you are motivated by one or more of these factors to make a change, maybe now is the time to consider some type of transition.
- How long will the process take? - For general dentists in the major metro areas, expect six to twelve months to complete a transaction. Smaller town locations take longer to sell, sometimes up to 36 months. Dental specialists whether in metro or rural areas can expect at least 18-24 months, assuming a buyer can be found.
- What is my practice worth? - Circumstances surrounding each sale vary widely, from estate sales to partnership buy-ins. Lenders have their process of valuation and will only lend certain values to your buyers - this can make a sale more difficult or complex if a valuation is unrealistic. We recommended hiring a professional dental broker to provide a valuation to provide you with the best and most reliable sale price.
- Emotional ties the doctor has to their patient base, staff, and the business. - We have found that the emotional process of selling a practice often plays a more significant role than any other circumstance. Dealing with your feelings prior to putting your dental practice on the market will help minimize your anxiety as you navigate the transition process.
- Hire a dental broker? - It is a wise choice to entrust the responsibility of selling a dental practice to a professional who has the knowledge and experience to facilitate a successful transition. We find clients are more likely to receive higher values for their practice and have incredibly fewer complications or surprises before and after a transition.
Through proper preparation and planning, you will find the acquisition process quite rewarding. More importantly, you will avoid making some critical mistakes that can turn the sale of your professional dental practice into an emotional and/or financial disaster.
What are the Steps to Sell My Dental Practice?
Before and during the process of selling a dental practice, an NAPB dental transition consultant can help you with the following:
- Initial consultation for the dental practice valuation and appraisal
- Gathering data (staff, practice needs, financial statements)
- Analyzing market value and evaluating assessment options
- Creating a plan of action so that seller needs are met
- Reviewing and matching seller goals with the ideal buyer
- Detailed planning of the transition process
- Writing up and reviewing agreements between the seller and buyer
- Pre-closing interviews with staff, accountants, and the banks
- Closing
- Maintaining business connections to ensure that all parties are happy with the transition
As a dental professional, knowing how to sell a dental practice might not be your area of expertise, but it is ours, and we’re here to help make the process of selling a dental practice easier and more profitable.
The Process for a Successful Dental Transition
Once you've made the decision to sell your dental practice and have mentally prepared for this venture, its time to choose a dental broker within your area. The National Association of Practice Brokers provides experienced member brokers from all over the nation. After connecting with a broker you'll go through an agreement process to set-up and begin marketing your practice to potential buyers.
Our member brokers connect regularly to set standards for the industry of dental brokers so you can rest assured your dental transition is good hands. Many of our members have been providing practice brokerage services since the 1970s. Many members have obtained acclaimed recognition for pioneering practice valuations and proper transition practices over the last 50 years. With a team of member brokers who share insights, tactics, and proven successful processes, there are no better dental brokers to invest your time and trust your dental practice sale to.
