After years of dedicated service, you’ve finally decided to throw in the towel and sell your dental practice to enjoy life in retirement. However, selling your dental practice isn’t a simple walk in the park. There is a ton of paperwork involved in the process, plus several other things you’ll need to consider.
To help you get started on the right foot, here are some tips on preparing to sell your dental practice and finally retire.
Know your ‘why’
Before anything else, you must establish your ‘why’ or your reason for selling. Is it simply to retire or are you looking to get the most ROI by putting your dental practice up for sale?
It’s important that you identify your motivations as early as possible, as this will affect the way you approach the selling process. If you come up with several reasons, weigh each one and see which has the heaviest impact on you.
Don’t do it alone
As we’ve mentioned earlier, selling your dental practice is not a simple undertaking. There are plenty of legal and technical requirements that you’ll have to comply with. If you don’t know how to effectively deal with all these tasks, it may cause delays to your goal of selling your practice.
You can get support from your family to help you work through the complexities of the selling process. Or better yet, consider hiring a professional to help you handle the technicalities for you.
For instance, if you share ownership of a dental practice with a business partner, a buy and sell agreement would be called for to help keep all participants on the same page in addition to your dental partnership agreement. To get the best results, working with a lawyer or law firm that specializes in buy and sell agreements is best.
Keep realistic expectations
It’s not good to have an overinflated view of how much your dental practice is valued in the current market. Traditionally, owners of privately held small businesses could expect three or five times more earnings after a sale. However, that isn’t always the case, especially in today’s market.
The truth of the matter is, there are several factors that can affect the value of your dental practice. Furthermore, things like interests, taxes, depreciation, and amortization can affect the amount of money you receive preceding a sale.
Unrealistic expectations can only cause disappointment. To avoid any such event from happening to you, consulting with a dental practice broker to discuss things like tax planning and other processes is something that you should consider.
Make sure dental equipment and facilities are updated
New owners want to avoid exorbitant capital expenses when they’re looking for a business to buy. Therefore, a great way to increase your dental practice’s value is by making sure to keep your equipment and facilities up-to-date with the latest standards and requirements of the industry.
However, this doesn’t mean that you should spend extravagantly on changes and facility improvements. Making incremental alterations over a period of time is completely fine, so long as these are changes that make your dental practice more vendible.
Get help with marketing to sell your dental practice
Once you’ve determined your reason to sell, have put together a team to help you navigate the process, and have established realistic expectations for yourself and your business, you can move on to promoting your dental practice.
You want to reach the right type of buyer if you want to make the most out of selling your dental practice. To achieve that will require you to invest in a good marketing strategy and team.
Hiring a marketing professional such as a consultant may be expensive upfront. But considering that these experts have all the skills, tools, and resources to properly communicate the values and qualities of your dental practice, the ROI in hiring a marketing specialist could potentially be more than the costs.
So, you’ve gotten the word out that you’re selling your dental practice.
What comes next?
Well, every selling experience is different from the other. There’s no saying how your experiences will be like until the time finally comes. Some people might have offers flooding in after only a week of listing their business. Others, on the other hand, may find themselves waiting months before a single offer even reaches their doorstep.
The important thing to do during this period in the selling process is to be patient and stay determined.
At this point, some sellers may even feel pressured or anxious to make a sale. They may make unnecessary mistakes like lowering their prices or accepting an unfavorable offer just to get things over with.
Don’t let yourself get carried away by fear or frustration. As much as possible, stay calm and always think twice about doing things or completing transactions that are related to the sale of your dental practice.
If you wish to avoid committing any errors in your selling process, we highly recommend working with a professional who knows the ins and outs of a transaction such as selling a dental practice. They will have all the necessary data and information to help you make the best decisions. They may also connect you with a wealth of possible buyers.