What Every Dental Practice Seller Should Know
Timing is everything . . . when is the right time to sell?
Many factors can lead to the sale of a practice; retirement, a new venture or business opportunity, or simply wanting a change. Dental Practice Sellers must allow for proper planning for a timely sale done at the most opportune time. Compelling personal problems (a divorce, death in the family, poor health, etc.), partnership disputes, and shortage of capital or outright failure of the practice are some of the common events that can lead to an untimely forced sale. Dentist burn out can emerge in a successful practice as well as one that is failing. Dentist burn out may not affect the value of a practice in the short term, but long term it nearly always has a dramatic negative impact on both the success of the practice and its value. The right time to sell is when the practice is doing well, before you are burned out, while you still have your health, zeal, and enthusiasm for the practice.
Dentists that find themselves in a distress sale situation may have to take what they can get for the practice due to time or financial pressures. They are often forced to sell at a bad time for the practice and ultimately themselves. Instead of waiting for unfavorable conditions to force a sale, dentists should watch for the best time to put their practice on the market to maximize the return on their investment.
Before you decide to sell your practice, focus on your true goals and objectives. Why do you want to sell? What will you do after you sell? What will you do with the money from selling your practice? You should give these questions serious consideration before you decide to sell. You should seek the advice of your tax advisor regarding possible tax implications from the sale; likewise, you should speak with a First Choice Practice Sales Broker regarding the current market price of your practice as well as various deal structures available to you. Your First Choice Practice Sales Agent or Broker can discuss the market value of your practice and various deal structures that may be advantageous to you.
Don’t put your practice on the market to “test the waters” or with an ambivalent attitude about selling it. Selling a practice is a major undertaking requiring a great deal of work on everyone’s part, including yours, and unmotivated sellers are rarely successful in selling their practices.