3 Steps for Selling Your Dental Practice: Legal, Financial, & Personal
June 7, 2022
If you’re a dentist who’s gearing up to sell your practice, congratulations! This is a big milestone, and hopefully you have something exciting planned for the future to cap off your successful career! That said, selling your practice can still be a bit of a hassle, as there is quite a lot that goes into making it happen! Here are three steps for you to follow to ensure that you cover all of your bases and set yourself up for a successful sale of your dental practice.
Step #1. Contact Your Lawyer and Accountant to Prepare Your Dental Practice Legally and Financially
It’s important to make sure that you’re following legal and financial protocol; your dental practice is presumably the largest asset and source of revenue that you have, meaning that you need professionals who understand the ins and outs of the business. You also want to make sure that your money is exactly where it needs to be and that you’re making the most you can from your sale!
Your lawyer will be able to draw up all of the appropriate paperwork to get the process started—ideally, your lawyer should have some experience with mergers and acquisitions. They will help you get your practice accurately priced and also make sure the prices are fairly negotiated. They also ensure that you don’t miss any small details buried within the contract; simply put, they’re a huge ally to you throughout the entire process.
Your accountant is another important teammate; if you’re getting ready to sell your practice, hopefully it’s already doing pretty well financially! And if all goes well, this sale will only improve your financial situation. Your accountant also provides advice about the value of your business, as well as the tax implications of your sale.
Step #2: Get Your Office & Accounts in Order
Of course, you’ll want to be sure that your practice is also physically ready for the sale. It needs to look as desirable as possible for any potential buyers, meaning a tidy financial situation! If you have outstanding insurance claims, several patients that owe payment, or an extensive aging report, buyers might be deterred. You also want the practice to be clean and organized. Ensure that things aren’t trashed, the equipment is functioning properly, and that all systems are clean and attractive to buyers.
Step #3: Be Transparent About the Sale with Your Team
If you’ve developed close working relationships with your dental team, it might be tough to tell them of your plans. But being transparent and letting them know of the situation is the best way to ensure that things go over smoothly. If the sale happens by surprise and catches everyone off guard, the transition might be bumpy, and the new buyer could end up needing to hire a brand-new staff! That said, it’s in everybody’s best interest if you inform your staff of what’s going on. It’s a courtesy to them and will also allow them to prepare for the inevitable shift.
Selling your practice can be a huge change—it’s likely been a large part of your life for the last several years! That said, following these steps can help to ensure a smooth sale that you’re satisfied with, emotionally and financially.
About Next Level Consultants
The team at Next Level Consultants has proudly helped hundreds of new dentists successfully start, buy, and manage their new practice under the leadership of Mike Dinsio and Paula Quinn. Together they combine years of success and knowledge in the industry to provide dentists with the tools and skills they need to succeed. If you have any questions about the article or would like to get in contact with their team, don’t hesitate to reach out online.