If you are planning to sell your dental practice, it is important not only to attract potential buyers but also to maximize the value of your practice. There are several steps you need to take before you bring your practice to market, but it takes an experienced dental attorney to ensure a smooth transition and close the deal. In the end, preparing to sell your dental practice is relatively easy, here’s how.
Upgrade the Office Space
When patients come to your office, the atmosphere should be welcoming and receptive, but it is equally important to showcase your professionalism to a potential buyer. While it may not be necessary to buy new equipment, maintenance and repairs should be performed. It is also wise to declutter the office, replace worn furniture, and clean up the facility.
The number of patients your practice serves is the key data point for buyers because steady production is a leading indicator of your practice’s viability. In the contemporary marketplace, attracting new patients requires having a state-of-the-art website and asking existing patients to complete online reviews.
If you plan on selling your dental practice, it is crucial to maintain your production levels. By slowing down or referring patients to other providers, you will likely see lower profits and a decline in the value of your dental practice.
Generally, a dental practice’s fees should be evaluated and adjusted on an annual basis based on the market value in your region. If you have not adjusted your fees for more than 1 year, do so before you market your practice.
When selling a dental practice, you will likely be asked to provide prospective buyers with financial information, including:
- Financial statements
- Accounts receivable reports
- Production reports
In short, you must be able to show that your practice is well managed and profitable.
Consult with a Professional Team
Given the various factors involved in selling a dental practice, it is wise to work with an experienced professionals who can:
- Value your practice realistically (accountant or broker)
- Promote the sale of your practice (broker)
- Work to locate a buyer
- Negotiate transaction terms (accountant, attorney and/or broker)
- Prepare or review legal documents (e.g. letter of intent, confidentiality agreement, purchase agreement, noncompete agreement) (attorney)
- Assist with tax planning (accountant)
Ultimately, your the team that you have should work for you and answer any questions that you may have. Having an attorney experienced with dental sales will be important.
Selling a dental practice requires careful consideration and it is essential to be prepared. By taking the above-mentioned steps and working with an experienced dental attorney, your chances of a smooth and successful transition increase.