January 15, 2018
How Do I Sell My Colorado Dental Practice?
Whether you are ready to sell for a personal reason or you want to transition the practice to a partner, you are probably feeling a little overwhelmed by the thought of selling your Colorado dental practice. After all, this is arguably one of the most important financial decisions of your life. Here is a list of steps involved in the process and some helpful tips to get you started on the path to a dental practice transition.
Identify your goal
First, you must identify what you are trying to achieve and what is most important to you. Do you need to sell by a specific date? Is your ultimate goal to maximize your financial return? Or is the most important thing finding a buyer who will retain your staff? While sometimes you will need to compromise, it’s important to know what you won’t negotiate on.
Talk to experts
A considerable amount of thought needs to be put into your efforts of selling your dental practice. Fortunately, you don’t have to take on the challenge alone. The best way to sell a dental practice is to work with an experienced transition broker. Not only can they help increase the probability of a lucrative transition, but they will also decrease the possibility of post-transfer litigation. At the end of the day, an expert will be on your side to address your specific concerns and guide you through the process.
Determine the value of your practice
One of the first things you will do with your transaction broker is conduct a comprehensive practice appraisal. This will determine what your practice is worth and tell you how to maintain its value until you are ready to sell. At Professional Transition Strategies (PTS), we use the most effective way of calculating your practice’s worth by looking at certain factors and their impact on the business. Some of these factors include the location of the practice, growth potential, long-term trends and reason for sale.
Review your options
There are several types of dental practice transitions. Here are just a couple of your options:
- Buy-out: This is when the purchaser buys your dental practice for a negotiated price with a relatively short transitionary period. This is the quickest and easiest transition type.
- Buy-in: This is when a specific buyer purchases a defined portion of the practice for a negotiated amount from day one. In addition to a practice analysis, PTS will perform a personality profile to ensure compatibility. It’s a long-term approach that can expand your practice’s value.
- Merger: This is when two existing dental practices combine to become one entity and operate normally as equal partners moving forward. This is an option that allows net income to stay the same or even improve because there is no loss of business.
If you are still wondering “How do I sell my Colorado dental practice?” contact us today.