Do’s and Don’ts for Dental Practice Sellers
Considering selling your dental practice? Make sure you follow these general rules for dental practice sellers to ensure you receive top dollar for your practice!
Do keep good records and have them ready. A good set of books can significantly increase the chances of a successful and profitable dental practice sale and will speed the buyer’s due diligence process.
Do allow sufficient time to sell your dental practice. Selling a practice is much more difficult and complex than selling a house. The time your dental practice is on the market will depend upon the current market, the type, and size of your practice. While some dental practices sell quickly, you should expect up to six months and allow up to a year to complete a sale.
Do offer terms. Smart buyers (the kind you want) know that some practices sell with terms and some type of seller financing.
Do consult with a knowledgeable First Choice Practice Broker about the value of your practice.
But don’t pay large amounts of money for an appraisal of your practice. Professional Practice Brokers are the only people who know what practices are actually selling for. If you want a 3rd party market valuation report prior to selling the practice, your First Choice Practice Broker can discuss these services with you.
Don’t wait too long to sell. The best time to sell is when your dental practice is doing well. Don’t wait until a downturn or personal reasons force you to sell at the wrong time. Sell your practice when it is performing well and sell from strength.
Don’t underestimate the value of your practice. Owners usually minimize profits to lower taxes, and the “bottom line” might not show the real value of your practice. Your professional First Choice Practice Sales Broker can help you determine the real value of your practice.
Don’t sell to the wrong buyer. Your competitor, supplier, or favorite employee may not be the best or right buyer; or willing to pay the right price.
Don’t overprice your practice. Under-pricing will cost you money; overpricing will cost you precious time and maybe even the sale of the practice. The “I can always come down in price” attitude sounds good, but it eliminates the best buyers, your practice stays on the market too long and you lose valuable time. Start at a reasonable price. Smart buyers know what a practice should sell for and will pass up overpriced opportunities to focus on more reasonable ones.
If you have questions on how to sell your dental practice, Contact First Choice Practice Sales today!