1. How do I locate Potential Buyers?
There are several approaches to take when preparing to sell your dental practice. You have worked extremely hard to build your practice and have invested a lot of money, sweat and tears to build your dental practice into what it is today. You are still currently working in the practice and also trying to reap the benefits from your practice by doing some travelling, spending time with your family or just enjoying your hobbies. All of that takes time and so does selling a practice. If you are planning on transitioning out of your practice, how will you determine what the actual market value of your practice is, how are you going to locate potential buyers, screen the buyers, show the practice, and also continue to do things you've been doing? In the past, one of the approaches was to bring on an associate and after a few years have them buy into the practice and eventually take over the practice. In recent years that has not been as successful unless there is a buy-in clause in your initial agreement, and that doesn't always come to fruition either. Currently, only 10-20% of the associates without an initial clause to buy-in actually purchase the practice, the other 80-90% leave and either continue to be an associate in another practice or purchase a another practice outright. So what do you do now? Just as you are an expert in dentistry, there are experts to assist you in transitioning out of practice. NL Transitions can work as your trusted adviser to not only determine the market value of your practice but do the leg work necessary to find a suitable buyer and be there to assist you from the beginning the end of the transaction.
2. What preparation is required before beginning the sale process?
When dentists are looking to transition out of their current dental practice, there are a few recommended steps to take in order to build more value in the practice. You can start by organizing your client and financial records so interested buyers can get a clear breakdown of the practices’ financials and client data. Ideally, your practice should be continuing to do well when you put it on the market. The office, reception area, and operatories must look current. The entire practice space should be clean and well lit so that potential buyers will be attracted to the space. Here are a few tips on boosting your office’s curb appeal.
If your practice has a website- keep it up to date. Your website should be full of content and educational materials. Both new and existing patients should have access to online forms that they can print and complete prior to coming in for an appointment- it will save so much time. Also, become more active on social media – connect with your patients, prospects and even other dentists. It is important to be aware of the latest news in the dental industry and be a part of the conversation. Having a great online presence and reputation can be a great selling benefit. And finally, though you are planning to sell your practice, continue to market to both new and inactive patients.
3. What can I do to help seal the deal of the sale?
When in the process of closing the deal on your practice with a prospective buyer, improve your chances by offering your help through the transition phase. Knowing that he/she can give you a call if they have any questions, usually gives the seller extra reassurance that the decision to purchase your practice is the best one. Also, it is typically up to the seller to send your existing patients a letter recommending the buyer’s practice or give face-to-face introductions. It’s the little things combined that add much more value to the larger picture.
For more tips on selling your dental practice and information on how to make your transition process as smooth as possible call or email Ellen Dorner at 410-616-2042. Visit www.nltransitions.com for more resources on transitioning.