The most common question leading up to a dental practice transition is, “How long will it take to sell my practice?” While the answer isn’t cut and dry, there are a number of factors that contribute to how long your dental practice will be on the market. Here’s how to know what to expect.
Type of transition
From a buy-out to private equity investments, a dental practice transition can take anywhere from less than a year to more than five. Predictability, dependability, and marketability all contribute to the type of transition and the timeframe associated with it. Whether the doctor stays on to practice during the transition also contributes to the success rate.
From a metropolitan area to a rural community, having your practice located in a desirable area of a city rather than a smaller, more rural area will work to your advantage when selling your dental practice, ranging from 22 days to five years from the day your practice is on the market to the day it closes. Today, “hot spots” of the country include Austin, Texas, San Diego, California, and Denver, Colorado.
Practices valued between $750,000 to $1.2 million tend to move more quickly than those collecting less that tend to sit on the market longer. Simply put, smaller practices mean less revenue for the incoming doctor. This is especially true if the buyer is still paying off student debt. It might be worth considering a few easy steps to grow your practice before selling.
The easiest route to a smooth transition is to hire a broker that is familiar with practices like yours. That does not necessarily mean one in your geographic area but rather one that has experience with the size and type of transition you are working toward. Working with a broker that takes a proactive approach to finding the right fit for your practice will ensure fewer days on the market.
Contact the experts at Professional Transition Strategies to get the ball rolling on the sale of your dental practice.