June 20, 2017
Dental Practice Transition Checklist: What to Know
Transitioning a dental practice is an intricate process, and can seem overwhelming if you are approaching or going through the process. Not only does transitioning a practice include the financial challenges but the emotional and relational ones as well. We can help you navigate this process because we have been through it before. We realize that every situation is unique; but we also recognize that there are many steps to go through to successfully transition a practice, and we have provided an outline below.
First of all, it’s important to note that you have options. You have the ability to chose a transition that works for you and your staff. There are many different kinds of transitions, which include:
- Associate To Buy-In
You can learn more about the details of each of these transitions in our ebook. Selling 100% of a practice is usually easier and less complicated than selling part of one. However, this isn’t the best form of transition for everyone. Some doctors are very busy and are not yet at retirement age, so selling part of their practice now and the rest later when they are closer to retirement makes more sense.
Each of these options have advantages and disadvantages, and Professional Transition Strategies can assist you in deciding which works best for you and your family.
Regardless of which transition you feel is the best choice for you and your practice, we are here to support you through the process.
How To Begin
The first step in transitioning a practice is to have a comprehensive Practice Appraisal conducted to determine ways to make your practice more profitable and valuable. This appraisal gives you the time to get your practice and facility in the best financial and operational shape possible before you decide on which transition option is the best for you. Since it is a buyer’s market, only the best practices will sell.
If you are looking for a quick estimate of the value of your practice, our valuation calculator is a great place to start. This tool allows you to see an online estimate of the value of your practice with simple information.
Depending on the kind of transition you choose, the process will be different and will have a different time frame. Some transitions can happen as quickly as a few weeks where others can take several months. The process will depend on the type of practice you own, the type of transition you choose, and where your practice fits into the market.
Should l Transition My Practice?
Every doctor that owns a practice should eventually plan to sell. With proper planning and assistance many will get paid well for their life’s work. Others will miss opportunities because of fear or misinformation, and net only a fraction of the worth of the practice. Waiting until you absolutely need to sell your practice because of financial reasons or life events can put you in a rush, which typically doesn’t result in the best value for your practice. It is important to sell before your practice declines in net income, patients or revenue as that is a red flag to buyers and financial institutions, and could negatively affect the selling price of your practice.