It’s time to move on to the next chapter in your life. If you’ve spent many years investing your time and energy into your practice. And now, you’re ready to place your dental practice for sale. You already know that selling your dental practice won’t be a walk in the park. But you should also be aware that there are strategies to help you get the most from selling your healthcare practice.
To get the keep the most money from selling your dental practice, understand that there are many moving parts to the cogwheel that is dental practice transitions. Follow this guide to reduce costly risks and to retain the most money generated from your sale.
Be the Early Bird
While you should always keep your financial statements in order, we know that’s not always the case. So, organize your financial statements as far in advance as possible. As soon as you think about selling your dental practice, start getting your financial documentation in order.
Ask yourself these questions as you get your financial affairs in order:
- How much of a difference is there between expenses and revenue?
- What’s your patient retention? Is it high or low? Why?
- In the last three years, which expenses have you had that will not extend into the buyer’s ownership? Think about one-time purchases, vehicle and travel expenses, etc.
- Has there been any events that caused your revenue to dip?
- How is employee turnover rate?
You will need to be able to be transparent about why costs may have gone up or revenue gone down one year. Also, buyers may not be in a position to replace employees who were lost.
Clean Up Your Practice Thoroughly
A good, deep cleaning can be quite cathartic. In the case of healthcare practices, it’s not only about making your practice look spick and pan clean, but also about getting rid of clutter, revising outdated fee schedules, ensuring your equipment functions properly, and replacing equipment that does not. Review all of your policies and systems. These are important steps to ensuring that you are bringing more revenue than problems to the table of sale. A good cleaning will go a long way toward fetching a higher price for your practice.
Consult the Experts
Each dental practice acquisition is different because there are different variables and needs involved. It will be most helpful to enlist the help of a dental practice consultant. A dental practice consultant can help you with difficult to navigate issues like tax laws and how to broker the best deal to help you keep the most money in your pocket.
A dental practice broker will be able to help answer questions like:
- Will you need to sign a covenant not to compete?
- Which tax bracket does your dental practice fall under: A C corporation? Is there a way to broker a deal to lower the tax burden without burdening the buyer?
- What other tax considerations do you need to be aware of?
These tips to keep the most money from your dental practice sale are sure to help you. However, you can get more of the expert advice you need with our specialists at Aptus Exchange.
