July 22, 2022
It’s pretty clear that your dental practice is an extremely valuable asset; for many dentists, the value of their practice represents the single largest portion of their nest egg and means for retirement. That said, with a little planning and the proper exit strategy, it’s possible to significantly increase the value of your practice before cashing out and kicking back to relax. Here are some tips to help you out.
1. Grow Your Patient Base
New patients are just as important to a dental practice as current patients. This is because new patients represent the future revenue and growth of a practice! A marketing system that can quickly and efficiently attract new patients is a huge plus. That said, retaining your existing patients should still be a huge focus of yours too; these patients are the bedrock of your practice and are important for recurring revenue.
2. Established Systems
If you’re thinking about selling your practice at some point, buyers will want to know that the entire practice has solid systems and a process in place for absolutely everything including operations, human resources, marketing, and patient growth. If you have systems that are complete and work well, the value of your practice will greatly increase, as it makes it easier for the new buyer to assume the day-to-day operations.
3. Strong Dental Team and Office Management
The success of any dental practice is heavily reliant on both the dental team and also office management. Buyers want to know that the dental team works well together and that everyone from the front staff to the doctors and assistants will want to remain onboard. That said, the better your team, the more valuable your practice is. It’s also worth mentioning that sometimes a dental practice can greatly benefit from the addition of a new dentist; establishing them prior to the practice going on the market ensures that their services provided are in line with expectations.
4. High Patient Satisfaction Numbers
Patients often want more than just a good cleaning and check-up; education, preventive care, and access to high quality tools, equipment, and providers is also greatly desired. The higher the percentage of patients who are satisfied with the practice, the more attractive the brand is to potential buyers. Good reviews really go a long way; people talk, and you want them to be saying great things about your practice!
5. New Technology and Office Space
If your practice is ahead of the curve and has the latest technology, it will be quite valuable to potential buyers. Outdated equipment means that certain procedures take longer to complete; thus, the decreased overall value of the practice. Office space is also a factor; not just the physical size of the building, but also the space where it is located. Practices in highly desirable areas with the potential to add or change services are always going to fetch better offers.
The bottom line is that there are several different ways in which you can increase and maximize the value of your dental practice, and it all lines up with appeasing the potential buyers. Following these five tips will help you to prepare your practice for sale and ensure that you are getting what it’s worth.
About Next Level Consultants
Next Level Consultants proudly serves the needs of new dentists everywhere who are aiming to start, buy, and successfully manage their own practice. Under the leadership of Michael Dinsio and Paula Quinn, the team at Next Level Consultants has helped hundreds and is looking forward to helping you next. If you have any questions about maximizing the value of your dental practice, don’t hesitate to reach out to get the assistance you need.