senior physician shaking hands with young docotor in hospital sick room

Top Seven Tips to Consider When Selling Your Dental Practice

January 15, 2016
  1. Don’t wait until it’s too late! Look for a potential buyer when you’re practice is performing at its best and busiest to ensure you obtain the highest purchase price possible. If you wait until retirement your practice could be smaller, lack advance technological equipment and facility improvements. To ensure you get the most equity out of your practice sell at your peak not on your way out. Buyers look for financial reports with an upward curve in earnings, not downward.
  2. Maintain a dental practice with high integrity and great patient care. Your professional patient care builds reputation and referrals in the community. Your practice value is closely linked with your quality of patient care, friendliness, professionalism of staff, office appearance, cleanliness and clear and accurate patient communication.
  3. Update & repair your office with current dental technology and equipment. Ensure your dental chairs, x-ray machines and ancillary instruments are all functioning properly and efficiently. Also make certain that your reception is looking crisp and well put together as patients appreciate a professional, clean and well-maintained dental office, as does a potential buyer.
  4. Maintain privacy about the sale of your practice. Don’t tell your staff, patients or referring dentists about your plans. You don’t want to lose staff, patients or referral sources because it could affect the valuation of your practice. Once a buyer has been found and engaged, there is plenty of time to inform staff before the new owner takes the helm. A small evening gathering and introduction to the new owner(s) can ease any concerns your staff may have and give them the opportunity to ask any questions regarding the future
  5. Consider having your dental practice appraised by an independent certified business appraiser who works with dental and medical practices. This will help you establish a baseline-selling price.
  6. Evaluate & clean up your account receivables. Get rid of old collectibles and proactively collect all outstanding accounts up to 90 days. Also, be upto date on financial profit and loss reports, equipment lists and depreciation schedules
  7. Don’t change/cancel participation with any dental insurance programs prior to or during the sale of your practice. You don’t want to lose patients and income source.