March 30, 2018

8 Ways to Increase the Value of Your Practice Before You Sell

Just like you would make curb appeal or structural updates to your house before putting it on the market, you might want to consider the same for your dental practice before selling. Not only will necessary updates make it more appealing to a potential buyer, but all these pieces will also help increase your value and practice appraisal for the bank. Here are our top suggestions.

Expanded services

Depending on your timeframe, an obvious first choice might be to offer different types of services to patients. Consider doing implant work, orthodontic treatment or extractions to make your practice more desirable to both patients and potential buyers.

Update equipment

If your equipment hasn’t been updated since you opened your practice decades ago, it’s time to consider an upgrade. While this isn’t a dollar-for-dollar method, you may get better or more offers from someone who is looking for a turnkey operation.

Cosmetic changes

Don’t underestimate the power of a fresh coat of paint. Everything down to your waiting room chairs and overhead lighting is up for scrutiny when a potential buyer is assessing your practice. Small updates may make a big impact in the long run.

Office location

The old real-estate adage of “location, location, location” holds true for any business, as well. If your office isn’t in a prime spot, it wouldn’t hurt to consider a move before putting your practice on the market. Think ease of traffic and off-street parking when looking to relocate.

Increase top-line revenue

Paid advertising, guerilla marketing, associates to network with and other marketing opportunities will all add exposure to your practice before putting it on the market. Spending a dollar to make a dollar will hopefully pay off at the end of the day. Just make sure to track your records over multiple years to show a potential buyer and your bank.

Lower expenses

A potential buyer will want to know the cost associated with running your business, so now is the time to assess where cuts can be made. Electric bills and any staffing changes are all fair game, as long as they don’t affect your top-line revenue or your patients.

Acquire or merge

Strength in numbers lies in the economies of scale. Consider selling to, acquiring or merging with another practice to grow your bottom line exponentially, whether or not you’re considering staying on with the combined practice.

Goodwill

Don’t discount the value of the non-material things associated with your practice. Your status within the community, practice name, staff loyalty and longevity, and brand awareness and marketing will all be the icing on the proverbial cake to a potential buyer who could possibly be starting from the ground up. Not to mention, the more a seller allocates toward goodwill, the fewer taxes will need to be paid at the close of the transaction.

What’s next?

Learn more about your options in our “Strategies for Transition” e-book, then contact the experts at Professional Transition Strategies to figure out what makes sense for your practice.

March 23, 2018

3 Reasons to Sell Your Dental Practice

Whether your biological clock is ticking or owning your own business isn’t what you dreamed it would be, there are plenty of reasons to consider selling your dental practice. Each situation warrants its own considerations and end results. Let the professionals at PTS walk you through your options.

Retirement

Retirement is a natural time to consider selling your dental practice. The key here is timing it right and finding the best fit for a buyer for a smooth transition for both your employees and patients. If time allows, consider staying on part-time until the new owner is ready to fully take on the reins.

Minimize management

You don’t have to wait for retirement to be burned out from dealing with the day-to-day managerial aspect. Bookkeeping, billing and human resources can all take away from your primary focus, which is interacting with your clients. Leave the budget-balancing to the pros, and consider selling to a dental service organization (DSO).

Share the responsibilities

If you thrive in a private practice setting but are getting overwhelmed with all the parts that make it run, it might be time to enlist a little help. A merger with a like-minded partner will help alleviate some of those tasks, while a buy-in will set you up with a buyer whose personality is compatible.

What’s next?

Ready for a change? Figure out the next steps for you and your practice by contacting the professionals at Professional Transition Strategies. You’ll begin your transition strategy with an overall practice analysis, then set a realistic time frame for a transitionary period.

March 16, 2018

Are You Ready to Sell Your Dental Practice?

You don’t need to be of the retirement age to consider selling your dental practice. But before you decide if you’re ready to pass the reins to a potential buyer, like with any major life decision, there is a number of questions you should ask yourself and factors to consider.

Am I ready for a change?

This might seem like a logical first question to ask, but going from your own boss to retirement or potentially working for someone else is a big shift in emotional change, as well as financial. A likely first step will be to talk with your financial advisor or CPA to help you determine if you can afford your next move by having a realistic expectation of what your practice is worth. Then, you’ll want to consider whether your change — whether it be retirement or working for someone else — will suit the lifestyle you envision for yourself. Acknowledging any risk upfront will help save a lot of time, money and heartache in the end.

What is my timeframe?

Especially if retirement is looming, setting a timeline for when you’d like your deal to be signed on the dotted line will help keep you on track. Expect a sale to take anywhere from one to five years, depending on the type of transition you choose. There’s a sweet spot between selling too early and selling too late when it comes to profits and employee satisfaction. If time allows, consider making updates to your office and its equipment, even perhaps expanding your services, to make it more desirable to a potential buyer.

How will this affect my employees and clients?

Part of getting into the dental industry is the customer (and even coworker) service. It’s natural to grow attached to those who have been loyal to you on both sides of the front desk. A retirement may not come as a surprise to most, but any other reason to sell will need to be communicated clearly to both your clients and employees as there’s a chance you’ll still have a relationship with them post-sale, depending on the type of transition you choose. If your timeline allows, staying on part-time after the sale will help ensure a smooth transition and put your clients, former coworkers and the new owner at ease.

What’s next?

Read up on your options, then reach out to the experts at Professional Transition Strategies to help make your next move.