There will come a point in your career in dentistry wherein you’ll feel that the time to “pass the baton”, so to speak, has come. This is a natural part of both nearing retirement and owning your own business. The process of selling your dental practice could potentially be beneficial, if you know the right way to go about it. The most important thing to remember is not to wait for you to get the point of retirement before finding a buyer and preparing for the sale. This way, when you find someone before the actual need arises, then you’ll have a higher chance of getting a better bargain because you won’t be rushing to sell it.
Not many dentists are aware of the best way to make a dental practice profit. When preparing for retirement, most people will have the inclination to reduce their workload in the times leading up to the actual retirement. When seeking to make a profit from selling your dental practice, this is actually counterproductive. By shortening hours or lessening your patients, you’ll effectively end up lowering the value of your practice, and buyers aren’t going to be interested when they see the decreasing number of patients – it just gives off the impression that you’re losing popularity and profit.
If you’re really looking to make a dental practice profit regardless of who you want to sell your business to – family, friend, or colleague – then there are some things that you should keep in mind, both while building your business and leading right up to the point of sale.
When Building Your Business
* Location is very important to buyers. Depending on the kind of service the buyer wants to provide and the neighborhood your practice is located in will greatly affect the influx of potential patients.
* Having the right technology. This doesn’t necessarily translate to having state-of-the-art equipment, but buyers are likely to take note of whether your staff is being driven to work harder and better thanks to the technology available.
* Your reputation in the community. How loyal are your customers, and how vast is your client base? This is essential to any potential buyer.
When You’re About to Retire
* Know your value – how many customers you have on average in a given time, your profit per annum, etc.
* Have all the necessary documentation ready. Both customers and buyers are going to want to see these.
* Always have a good working relationship with your staff and clients. They could be a big part of helping you sell your practice for a profit.