March 1, 2022
There are several factors to consider once you’ve decided to sell your dental practice, regardless of the reason behind your decision. That said, it’s important to ensure that everything is squared away and that you’re ready to make a successful sale! Keep reading to learn more about what goes into selling a dental practice, along with some useful tips for closing the deal.
#1. Determine How Motivated You Are to Sell
Are you willing to accept a lower price for a faster sale, or are you fine with waiting around for the perfect offer or buyer? Your motivation and willingness to sell will play a big part in how smoothly the process moves. The general rule of thumb is that the ideal timeframe from listing the practice for sale to closing is between 4 and 6 weeks.
#2. Assemble a Team to Assist You
You don’t have to undergo this monumental process on your own; there are many professionals out there who can offer their assistance. A dental practice valuator can assist you with assessing the practice’s worth. A qualified attorney with experience in dental practice sales can ensure that you comply with all applicable laws. A certified accountant can help you maximize different aspects of the sale and make sure you receive any eligible tax credits.
#3. Figure Out Who Will Represent the Sale
You can hire an attorney or a broker to negotiate and handle the minutia of the sale. By delegating these duties, you are ensuring that you remain objective throughout the process, and it also allows you to remain focused on patient care.
#4. Evaluate the Practice
Are there any improvements or changes that could make the practice more attractive to potential buyers? Sometimes enhancing the practice’s physical footprint can make a big difference, as can improving recall as a way to boost revenue and value.
#5. Create an Inventory
You should create a list of all dental and general office equipment, including things like brand name, model and serial number, year of manufacture, owner’s manual, warranty, repair history, description, and any other relevant documents or information. All of these details might seem minor, but they ensure that every item is accounted for, functional, and if necessary, easily repairable.
#6. Notify People of the Sale
There’s no reason to keep your sale a secret! Make a list of people and businesses to notify of the sale, including the staff, vendors and suppliers, your professional liability carrier, dentists to whom you’ve referred patients or who may refer patients to you, utility companies, and of course, your landlord.
#7. Conduct the Necessary Due Diligence
This might seem tedious and time-consuming, but it can minimize any delays when it’s time to finalize the transaction. Be sure to have everything in order including your federal tax returns, staff employment contracts, staffing expenses, practice accounts, financial statements, and balance sheets. All of this information is both relevant and necessary!
#8. Structure the Sale
This is your chance to finalize the terms of the sale and language in the contract. You should pay close attention to several things including access to patient records, restrictive covenants, the transitioning of good will, details about existing equipment and employees, tax consequences, the continued care of patients, and more. Once the deal has been made, it’s set in stone—so make sure you’re happy with the expected outcome.
Selling your practice can be quite the endeavor, but you don’t have to go about it alone! Following these tips, paying close attention to detail, and keeping your end goal in mind will ensure that you’re able to successfully sell your practice and feel great about its future.
About Next Level Consultants
At Next Level Consultants, our mission is to make the process of buying a dental practice as simple and streamlined as possible. Led by Mike Dinsio, a former banker, and Paula Quinn, an active hygienist, the team at Next Level Consultants goes above and beyond to help new dentists begin changing smiles and lives. If you have any questions or concerns about selling your dental practice, don’t hesitate to contact Next Level Consultants online or by phone: (720) 309-9551.