There is an increase in the number of dental graduates who are ready to take over a dental practice rather than start from scratch, making this a great time for a soon-to-be retiring dentist to learn how to sell a professional practice. If you’re a dentist who is ready to move onto the next phase of your life, now is indeed an opportune time to sell your practice as there’s been an increase in the value and marketability of professional practices. But where do you start? Here are a few tips which can help you learn how to sell a professional practice comfortably and without too much hassle.
Selling a Dental Practice is Not Like Selling a Car
Selling a dental practice is a complicated process that extends far beyond just looking for a buyer and closing the deal. While some dental professionals may be able to find a buyer, getting from that point to the end of the deal is the most difficult part of the sale process. This is because the market value of the dental practice much be determined, a purchase agreement must be drafted and a transition plan has to be formulated. Additionally, the buyer will have to find financing so that he or she can pay for the practice. All of these factors can knock a sale off course, resulting in lots of frustration and confusion. This is why it’s a good idea to hire the expertise of a professional who knows exactly how to sell a professional practice in the most efficient manner.
Hire a Practice Broker in Your Area
If there’s anyone who knows how to sell a professional practice, it’s the dental practice broker. The primary responsibilities of a practice broker are to accomplish the seller’s goals for the transition and to solely represent the seller’s interests throughout the sales process. He or she also will determine a fair market value for the dental practice to maximize the value the seller receives at closing. It’s relatively easy to find a broker to work with right on the internet. Focus on locating a broker in your area that has years of experience and who has the time available to sell your dental practice. Avoid using any broker who tells you he or she is swamped with work as that broker simply won’t be able to dedicate a lot of time to the sale of your practice.
Prepare Your Practice for Sale
In order to increase the value of your dental practice, you need to prepare it for sale so that it looks very attractive to interested buyers. It’s important that you maintain your production as dental practices are valued based on their income streams. If you let your stream of income trickle down, the sale price will lower significantly and potential buyers will be suspicious as will lenders. Make sure that your finances are in order and that your accountant has kept all financial records up-to-date. In short, keep accurate records and maintain your bank statements. You also could consider improving your practice by investing in new equipment or giving it a makeover which could include anything from new carpeting to a fresh coat of paint.
When you learn how to sell a dental practice, you’ll be able to seamlessly make the transition into the next phase of your life. It’s important to be patient as it can take time to sell your practice whether you’re using a broker or going it alone.