For anyone thinking of selling a dental practice, I would say now is a good time to do it. There is a higher number of potential buyers than there are practices for sale, so the chances of getting plenty of interest are high. Of course, this does not necessarily mean that it’s the right time to sell. There are several other factors to be taken into account.
Is the business in a good situation?
The best time to sell a dental practice is when it’s doing well. It’s tempting to just stay on board for a little longer when this is the case, but it’s worth remembering that factors which mean that the business is doing well are likely to be attractive to potential buyers, making it easier to sell the practice at a good price. Holding off on the sale could be a bad move as the situation may not be as good in the future. For instance, more competition may move into the area, turning a practice for sale into a less attractive proposition.
Is selling the best thing for the immediate future?
Having said that holding off on a sale may be a bad thing; it’s also not a good idea to jump straight in with both feet. It’s important to make sure that plans are in place, for the immediate future and beyond, and that selling the practice really is the best choice. Think about considerations such as:
- Is there a robust financial plan in place, for life post practice ownership?
- Is there still an opportunity to work as an associate if required?
- Is a change of lifestyle really the best choice, is stepping away going to be too difficult?
Once a practice is sold, it’s too late for a change of mind, so it’s important to be certain about a decision to sell.
What analysis and planning has taken place?
Any decision that is made about selling a dental practice needs to be backed up by analysis and planning, It’s not good enough to simply wake up one morning and decide that a change of career path is needed, and the practice must be sold to fund it. This is likely to lead to an impulse listing for sale which is never a good idea.
Lack of planning means that the practice may have to be withdrawn from sale, and this can be seriously damaging to a reputation. It can also make it more difficult to sell the practice if it’s re-listed as potential buyers automatically think that there is something wrong with it.
Speaking to an experienced team of advisors, such Samera, is often a good idea at this point. I know I have helped plenty of clients to see the wood from the trees in the past, and encouraged them to consider the market, prices and future financial planning before making a decision to sell.
Further Information on Selling a Dental Practice
If you’re thinking about selling your dental practice then Samera can help make sure that you find the right buyer and the best price for your business. If you want to get the best price possible when you sell your dental practice, you need to build the value and grow the revenue to ensure you get the best return on your investment.
Book your free consultation to find out how you can grow the value of your practice before you sell.
For more information please check out the articles and webinars in the selling a dental practice section of our Learning Center.