Posted by Guest Author on Aug 17, 2022 9:00:00 AM
If you own your practice and eventually want to retire from your dental career, it’s never too early to begin thinking about what you want to do when the time comes. One option is to sell your dental practice to another dentist who can take on your business and continue growing your legacy.
How Do I Sell My Dental Practice?
When preparing for retirement and the succession of your dental practice, planning is essential. Whether you’re just beginning to think about the future or you’re ready to retire soon, getting started early on will ensure you can have a smooth transition.
Below, we’ll discuss three steps to help you learn more about the current state of your business before you list your dental practice for sale.
1. Understand Your Finances
Examine the state of your finances before you sell your practice to someone else. Since the financial state of your practice will affect the selling process, you’ll need to understand several key aspects. In addition to your ongoing financial reporting, you should:
- Make sure your payroll and other expense reports are up-to-date.
- Work with a broker to evaluate your dental practice and property or lease.
- Assess profit and loss statements to understand your most recent financial profile.
In addition, you’ll want to avoid any unnecessary business expenses during this time, such as expensive upgrades to your practice.
By being knowledgeable and transparent about your financial reporting, you’ll be able to find the right buyer who is ready to take ownership of your dental practice.
2. Know Your Practice’s Strengths
You’ve invested a lot of time, money, and effort into perfecting your craft and building your practice to what it is today, so you’ll want to get as much as you can out of the sale. To maximize your sale price, showcase:
- Previous business goals you’ve had and how you’ve met them.
- Local professionals you worked with, including other dental professionals or business owners in your community.
- Nearby competition and similar factors of the dental practice.
- Effective community outreach efforts to grow your patient list.
- Your business growth and how the new owner can build on your progress.
When you provide valuable information by highlighting the strengths of your dental practice, you're more likely to entice interested buyers.
3. Optimize Your Practice’s Presence
When preparing to sell, you’ll be able to make your practice look attractive both online and offline.
Optimize Your Dental Practice Online
More than ever before, it’s important for dental practices to utilize online methods to reach, attract, and retain clients. In order to showcase your dental practice online:
- Ensure your website is clean, effective, and updated with today’s technology standards.
- Make record of your digital presence, including your website and any social media platforms you utilize.
- Provide — and, if necessary, update — your digital marketing plan.
Optimize Your Dental Practice Offline
Some of the most common offline dental practice operations to update and disclose include:
- A record of any physical marketing materials you have sent out, such as pamphlets, information sheets, and more.
- A detailed inventory of everything at your practice.
- Documentation for large equipment that will remain at the practice, including the purchase date, estimated replacement date, and other relevant information.
Prepare for a Successful Retirement Today
As you prepare to list your dental practice for sale, you can utilize the above steps to ease the process. However, there are other financial considerations you should make as you plan to retire, including:
- Estate Planning Strategies
- Business Succession Planning
- Buy/Sell Agreements
Get started successfully planning for your retirement!
About the Author
This blog was written by the team at Practice Real Estate Group, a full-service real estate firm focused on healthcare providers.
About Treloar & Heisel
Treloar & Heisel, an EPIC company, offers dental and medical professionals a comprehensive suite of financial products and services ranging from business and personal insurance to wealth management. We are proud to assist thousands of clients from residency to practice and through retirement. Our experienced teams deliver custom-tailored advice through an active local presence, while our strong national network ensures that clients experience the same high level of service throughout the country.