Selling a dental practice is no easy business, but it’s not as complicated as most people believe. Visiting the dentist or an orthodontist is of vital importance and the most people that open a new practice the better.
According to the Center for Disease Control and Prevention, the major oral conditions that affect most people include cavities, serious gum disease, and tooth loss. All of these could be prevented by a new practice opening nearby. Let’s find out important facts to know about a dental practice sale.
You can’t just sell a dental practice without any groundwork. The process could last years, and it’s vital to hire financial planners and even lawyers sometimes. Most people consider selling a dental practice when they’re about to retire, and they have to ask themselves, “Can I afford this sale?”
People normally have to check their investments, retirement funds, etc. to determine if selling their practice is the best option.
The market changes all the time, and many owners think that their practice is worth much more than it actually is. Some sellers think that buyers will give them three to five times their earnings, but it’s not that easy.
Older practices normally have older patients, which is not that desirable to an up-and-coming new owner. You have to be realistic about the worth of your practice before putting it up for sale.
The value of practice will significantly go down if the buyer sees that you have outdated equipment. Updating it yourself might not seem beneficial for you because you’re making a huge purchase before a sale, but this will actually increase the value of your dental practice.
Buyers are much more interested in purchasing something they don’t have to add too much work to, and regardless, dental practices should always stay up to date with the latest technologies.
Owners think that once the sale is over, they can leave. But most of the time, the new buyer will ask them to stay on board — even in a part-time capacity — to ensure that the transition goes smoothly. This is because most new buyers are afraid that established patients will stop coming after a sale.
Therefore, selling a dental practice can be complicated, and it’s a decision that owners have to think about thoroughly. But it’s not impossible. If you feel ready for a sale, go for it! And if you feel ready to buy, the investment will surely pay off!
