Obtaining an accurate valuation for your practice is essential. A well-prepared, transparent, professional valuation will make your practice more appealing to buyers.
Having an M&A lawyer that understands dental practices is also essential. They can ensure that selling prices are pretty negotiated and that tax implications are considered.
Hire an M&A Lawyer
For many dentists, selling their practice is a crucial milestone in retirement. It is essential to consider the different aspects of the sale and have candid discussions with your advisors. For example, maximizing the financial return is one objective. Still, it is also essential to consider your retirement timeline and whether you need or want to continue working post-closing.
A broker with experience in dental practice sales can help you get your practice ready for the market. This includes a physical evaluation, ensuring your accounts receivable are clean, and preparing your practice for the transition. Having the right people on deck will ensure a smooth, stress-free sale. This will be good for you, your staff, and your patients.
Get an Appraisal
Selling a dental practice is a significant life event and can feel stressful. One of the steps on how to sell a dental practice is having the proper legal and financial support so that you can make the best decision for your future.
An excellent place to start is getting an appraisal. This will give you a clear idea of what your practice is worth and can help the process move along quickly.
It’s also essential to get your practice in tip-top shape. Look at your office from a buyer’s perspective and make any necessary improvements. This includes fixing broken things, painting, and purging unused or obsolete equipment. Having all of your fees and patient records in one place is also a good idea. This will also help the sale process move along smoothly.
List Your Practice on the MLS
Before you can sell your dental practice, you need to figure out the value of your business. This is a complex process, and it will depend on several different factors. Your CPA, financial advisor, or broker can help you determine a fair price for your practice.
Once you have the valuation, it’s time to start looking for buyers. This can involve working with a business broker, putting your practice on the MLS, networking with potential buyers, or contacting your community and asking for referrals.
It is important to show prospective buyers that your dental practice is well-maintained and shows no signs of neglect. It also helps to keep organized records that document past performance. This will increase your chances of selling your practice quickly and at a higher price.
Create a Marketing Plan
A successful sale requires a well-thought-out marketing strategy. Having a clear plan and working with an experienced practice advisor who can help you determine the best approach for your specific situation is essential.
Buyers are looking for a move-in-ready practice, so it’s in your best interest to ensure your practice is in good condition before selling it. In addition, buyers are interested in knowing whether the real estate is included in the sales price and if you own or rent the space.
Lastly, you want to consider how much you’re willing to sell your dental practice for. You should consult your accountant to help you set a fair price to attract potential buyers. A qualified accountant can also explain the tax ramifications of your particular transaction.
Prepare for the Closing
Selling a dental practice is a big step with significant financial implications for the seller. The process requires a team of advisors to ensure it is done well.
Your accountant will help you evaluate your practice and determine how to market it for sale. An experienced broker will have a deep network of buyers that can quickly identify potential matches.
Your attorney will also be critical in determining the appropriate structure for your transaction. The type of buyer you select will play a significant role in the mechanics and timeline of your sale.
