When a dentist hears the phrase “dental practice transition,” they might immediately think of retiring and selling their dental practice. There may be dental practice transitions that require an immediate sale which is defined by the goals of the selling dentist.
Dental practice transition consultants can help you define the key difference between an immediate sale and a strategically executed practice transition. A successful dental practice transition can be a 10-year process.
A dental practice transition is a comprehensive process of incorporating another doctor into your practice with the intent of transferring ownership of the dental practice at a mutually agreed date in the future. There are several types of dental practice transitions depending on the selling doctor’s goals.
A transition is usually executed as a practice growth strategy with the help of a dental practice management consultant. Dental consulting companies will provide a strategic growth plan for a dental transition to promote growth before selling the practice.
Another way to differentiate an immediate sale of a practice and a practice transition is that one process is transaction-driven while the other is relationship-driven. Dental practice transitions are based on relationships to successfully match the right dentist to take over the practice, strategically grow the practice, and meet the goals of each dentist in the transaction. Dental practice management consultants must work with each dentist for several years before the sale of the practice to achieve the best result.
Every dental practice transition is unique because we work with different dentists which means different personalities and goals. It’s important to define the aims and goals of the selling dentist. Once you define the vision of the practice with the owner-dentist, it’s important to align an associate who shares the same vision.
The dental transition consultant will understand the vision of the owner-dentist after defining the following:
After defining the vision and goals of the practice, the owner-dentist will then create a strategic game plan to achieve the goals envisioned. Our dental practice management consultants at Aptus Exchange will create a step-by-step strategic plan that reinforces the strengths of the practice and details specific recommendations which directs the practice to new areas of opportunity.
The dental practice owner must be flexible enough to accept changes in their management style. If the dentist chooses to bring in a dental practice management consultant, then that advisor would take over as practice manager. It’s important for the dentist to change their management style to achieve their planned end goals.
Every private dental practice owner wants to retire from their practice with a set goal in mind. However, without taking action to achieve these goals chances are they might not achieve the result they need. At Aptus Exchange, our practice transition consultants work with the owner 7-10 years before the sale. Once a strategic game plan is designed to meet the needs of the selling-dentist, we then start looking for an associate who is a right fit for the practice. Finding the right associate can take 6 months to 1 year. It’s important to find the right match to ensure a comfortable transition for each party. Then we create a structure of the transition to partnership or full ownership of the practice.
During the transition, a dental management consultant will provide the selling dentist with a practice valuation before and after executing the strategic game plan. The dentist can view the positive impact the game plan has had on the practice overtime. Other documents provided include, cash flow modeling, tax planning, and legal document creation which take several months to complete.
Transitioning a dental practice is a significant life event both emotionally and financially. Working with an experienced dental practice consultant will help you achieve the best results. It’s important you choose a dental focused transition company who had achieved successful results for their clients. Ask lots of questions to ensure they’re the right fit for you.
With the right expertise, a practice transition can be a positive and exciting business opportunity for you.
Capture lost revenue streams: Many dental practices our dental management consultants have advised had many “cracks” in their operating systems. From many years of experience and several different cases, our dental consultants can easily help fill those revenue streams.
Increase value of your dental practice: Your transition plan should include a strategic game plan that will enforce systems to attract buyers and reach your financial goals.
Attracts and retain patients: Your dental transition consultant will create a custom marketing plan based on the location and needs of your practice. They will work in the practice with your team to enforce training techniques to retain new patients.
Engage your team: A dental practice management consultant knows the best practices to develop a high-functioning team that is committed, loyal, and productive.
Determine achievable budgets and goals: Practice management consultants will become a team player in your everyday practice operations to ensure training and goals are being achieved.
Preparing and planning in advance is always helpful for achieving the results you want. At Aptus Exchange, we believe a dentist should receive 100% of collections for their dental practice. It’s common to find dental transition consultants who sell practices for only 70% of collections. It’s important to ask these questions before committing to a dental transition consultant. Don’t ever sell yourself or your practice for less then it’s true value.
Steps to a successful dental practice transition
If you plan to sell your practice in 10 years, then you need to start the process now. If you have very specific goals, then their needs to be a game plan to back it up. Our dental practice transition advisors at Aptus Exchange have offered these general guidelines for a successful transition:
Positioning for a rewarding dental practice transition
The amount of Baby Boomer dentists reaching retirement match the amount of new dental students graduating. That means there are many new generation dentists looking to buy dental practices. Many dental practice acquisitions are going to be happening. However, they are looking to buy a high-functioning practice that looks well maintained.
Determine the value of your practice
Starting this process 10+ years before the sale can help you determine where your practice is financially and how it could be improved on. If the current value doesn’t match your goals, then it’s time to bring in a dental practice consultant to draw up a game plan toward reaching your goals.
Take your practice to market
It’s important that you bring several buyers to the table to achieve maximum value for your practice. When you work with an Aptus Advisor, they will bring only vetted buyers that match your aims and goals.
Schedule a time to talk to an Aptus Advisor to learn how they can help you achieve a successful us dental transition 312.275.2000
