4 Tips to Sell a Dental Practice

Transitioning away from your dental office is a huge decision, and with it comes lots of planning. To position your practice for a successful sale, you’ll need to put the same care and strategy into your exit as you did when you first opened your doors. Before you sell a dental practice, assess these aspects to look more favorable to potential buyers.

Make Selling Your Dental Office a Pain-Free Experience

Exiting a dentistry business is pretty similar to selling other medical practices. However, the coronavirus pandemic had an extra impact on the dental industry. Income change and fear of spreading the virus caused a revenue decline in 2020 and a slower return to normal demand.

However, this doesn’t mean that all hope is lost for practice owners. As trends return to pre-pandemic levels, you can still find a profitable, stress-free transaction. Proper preparation and experienced guidance both go a long way towards a successful transition. The following tips will help you get started in preparing to exit your practice.

1. Develop a Transition Plan

The first step in any business transaction is to determine how you, the dental practice owner, plan to move forward from the business. Prospective buyers will want to understand how the office will function after your exit. Put yourself in the shoes of a potential owner when outlining your answers to the following:

• How soon do you want to exit the business?
• Will you stay on to assist the new owner in getting the hang of things, or do you need to exit immediately?
• Are your dentists and office staff planning to stay on through the ownership transition? Is there paperwork that you need to prepare to ensure their job security?
• Are existing patients likely to stay with the practice if they have a new dentist?
• Are your future plans dependent on selling? If so, is there a certain amount you need from the dental practice sale to retire or move on comfortably?

2. Go Through Your Books

Next, you’ll want to get all of your important documents in order. From tax statements to leases, make sure you have a clear picture of the business’s financial health and cash flow. Working with a CPA or lawyer can help you ensure that you have everything you need.

3. Look at Your Practice Through the Eyes of a Buyer

With some logistics out of the way, you’ll want to consider what your practice looks like to an outsider. Think about everything from the first impressions of the waiting area to any equipment upgrades you’ve made and your flow of new patients. What about your practice would impress you as a patient?

4. Get a Dental Practice Valuation

Finally, it’s time to establish the value of your practice. Using a professional, third-party service is crucial to finding a fair market value for your business. There are several valuation methods, and working with a dental practice broker will help ensure you reach a reasonable asking price and, eventually, a purchase price that leaves both you and the new owner feeling good about the sale.

Once that’s set, you’re ready to move forward with your dental practice transition and list your dental office for sale. While you can attempt to do it alone, working with a business broker takes the weight off of your shoulders. A broker has the experience and knowledge to guide you through the transaction and get your dental practice in front of qualified buyers.

If you’re ready to plan your exit, consider reaching out to the experts at Sunbelt Business Brokers. Find a local office near you to get started!