You have given so much to your patients and to your community over the years and now you feel it is time to hang up your loupes and enjoy the fruits of your labors. You have decided to sell one of your proudest achievements – your dental practice.  You have a good idea of how much you want for it but you can only guess what it may be worth to a buyer.
Assume your practice overhead is 60% and your gross profit is 40%.  If you can increase you revenues in a short time, say 3 months, your percentage overhead will decrease and the gross profit will increase. This is because your fixed expenses, such as rent, utilities, payroll, etc. will increase only marginally. Your practice sale value will increase greatly.
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What can you do to sell your practice quickly and for the best price?
It comes down to several things:
1. Cash flow – net to buyer after expenses
        Score some 9th inning runs to increase the revenues with minimal expenditures by adding some high ROI services:
  •    A Soft Tissue Management (STM/CPT) program for your Perio/Hygiene department.
      A strong, profitable  Perio/Hygiene department should produce one third (1//3) of the total practice revenues and easily cover the office overhead. You already have the personnel; they need only training.
  •    Establish a Dental Sleep Medicine component.
             Dental Sleep Medicine is the hottest button in Dentistry today. A DSM protocol can be established within six weeks and has the potential of adding huge revenues to the value of your practice. Every patient today is aware of Sleep Apnea and is searching for dentists to help them. Only 4% of the nation’s 100,000 ++ dentists are qualified to treat these patients. 34% of the American population has symptoms of a sleep dysfunction. One in three.
No new personnel are needed.
  •    A Botox/ Restylane/ Juvederm service has been a huge patient magnet for many dentists.
Services like these can easily add revenues of $20,000 per month, are economically implemented, and can be established quickly.
 2. Effective Marketing
        Most dentists spend a lot of money on traditional marketing techniques. What they are really doing is dumbing down and competing for the bottom-feeding patients. Let the other advertisers use that technique and be different- promote your uniqueness. Show how you offer patients something that the masses of advertisers cannot offer. Something they really need. Be creative. ” Build a field and they will come.” DSM is one of those features. You can think of others.
A successful DSM or STM program can be established within one month.
3. Curb appeal- modern newer equipment
Picture yourself looking at a dental office that you would consider buying.  Your impressions of the equipment will color your value of the whole practice. Buyers do judge the book by its cover.
Wherever you can you should upgrade or at least spruce up the physical appearance of your office. Small investments can produce larger returns. Ask your realtor for suggestions.
4. Make sure the buyer understands the intangibles.
Discussions with your Dental Transitions Realtor will help you bring to the light the things you know about your practice that would show it more valuable. Consider your referring relationships from colleagues, physicians, and businesses. Consider your effective business systems. Think of what makes your practice unique and desirable.
5. Competitive Real Estate Pricing 
This one is more tricky. You will need to learn from your  Dental Transitions Realtor  what are the recent comparative sales and balance those factors with what price you want and need.
6. Who needs to be on track to make the sale happen?
Kenny Jones, Florida’s largest dental practice transition realtor offers this “2-2-2-2-2-2 Principle”:
“To sell any practice you need:
2- people (buyer & seller) to say yes
2- accountants who say yes
2- attorney’s who say yes
1 or 2 lender banks who say yes
2 dozen friends, family, etc. who say yes
That’s a lot of twos but all are needed to make the deal.”
  
Doctors’ Choice Companies is Florida’s largest statewide professional dental practice broker and consistently maintains over 100 practice opportunities.
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Food for thought- Have you ever met a dentist who retired and regretted it?

 

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