January 12, 2024
3 Ways to Prepare Your Dental Practice for a Sale in 2024
As your most valuable asset and your primary source of income, your dental practice should be at the top of your priority list for 2024, whether you’re considering a transition of ownership or in the final stages of a sale. The consolidation wave is now in its second half, leaving time for only one or two more private equity turns. Simply put, now is the time to capitalize on any wealth-building opportunities on the table. Here are three steps to take you closer to the finish line this year.
Find out the value
It’s hard to do any future planning without first knowing what your business is worth, and there’s more to it than doing a simple Google search. Trust a dental practice valuation expert with lots of experience under their belt as part of your team of advisors to do the work for you. As with any well-informed decision, you’ll want to start from a place of facts rather than hypotheticals. A professional dental practice broker will also make suggestions for improvements to increase your business’s value before it hits the market.
Time it right
There’s a fine line between trying to time the market for the sale of your practice and making sure you are financially and emotionally ready, a mindset commonly known as “founder’s syndrome.” What’s more, the transition period of a dental practice can take time — anywhere from five to 10 years when done right — so patience is a virtue. (And yes, the sooner you start planning, the better so you’ll have more options to choose from and more time to make a decision!) Every business decision up until this point should have been made with the end in mind. With the influx of private equity money, it’s a sellers’ market right now, and it’s your patients, staff members and professional reputation that are at stake.
Do the math
Dental practice sales tend to come and go in waves with the calendar year. Waiting too long to sell may result in a saturated market, making it more challenging to find the right buyer or secure an advantageous deal. Planning for a sale now allows you to capitalize on this growing demand, as prospective buyers may see it as a strategic investment with promising returns. These days, the markets are solid, and capital is flowing, opening the door for many dental service organizations (DSOs) to affiliate with.
You only get one chance to sell your dental practice. Make sure you have the right team by your side every step of the way. Contact the experts at Professional Transition Strategies to get started with a complimentary valuation.