As a dental practice owner, you must let go of your practice at one time or another. This is why, regardless of what stage you are in life, having plans to sell should always be in the pipeline. Even without the negative impact of Covid 19, you would still have a sales proposal at the back of your mind. However, as you do so, you can also get good value for all the effort you have put into the practice. Meanwhile, at this unpredictable time of the pandemic, such planning takes on a more urgent and meticulous process since it could represent your entire retirement egg. Here are some of the basic rules to use along that journey:
Start Planning as Early as You Can
Like any other sale of high magnitude, selling a dental practice might not materialize as soon as you snap your finger. Hence, the most important question to ask yourself is if you can afford to retire. You can also investigate your investment portfolio, financial accounts, and future retirement plans to see if you are on the right track. At this point, you may need to evaluate your lifestyle and goals to determine if any changes need to be made to accomplish your future goals.
Be Realistic About Your Business Worth
Many dental practice owners have an inflated view about their practice’s actual worth, and this can lead to negotiation and post-sale problems. You should work closely with a dental practice valuer who can provide a true picture of your practice’s value. Depreciation, taxes, and interest must be taken into consideration as you do the math. Again, the older the practitioner is, the more likely they may have patients almost the same age. Most valuers would consider this age group as depreciating assets, too.
Keep Your Assets Up to Date
As you plan to sell, you may also want to get the most value out of your practice. The more up-to-date and current your equipment and facilities are, the faster you’ll get an interested buyer with an offer that is more acceptable to you.
For more information or questions, please contact Ellen Dorner, Director of NL Transitions at 410-616-2042 or email firstname.lastname@example.org