3 Essential Tips To Complete Dental Practice Sales

Posted by healthcarebizsales on February 22nd, 2023

Running a successful dental clinic provides a lot of satisfaction, especially seeing the patients smile widely. Unfortunately, meeting the day-to-day challenges is too many for comfort. It is sure to come a time when the dental professional or the clinic owner is eager to call quits by ensuring dental practice sales.

It is easier said than done, though. There are numerous things to take care of to ensure a profitable sale. It certainly helps to have a systematic approach. The best way to go about the process should include the following steps:-

1. Timeline- One must be clear about the time to break away from the business. Most dentists may want to wrap up within a year, yet others want to do it within a month. The time should be realistic as there are many individual things to wrap up before unburdening oneself. Statistics reveal that almost all dental raises are sold between 6 months to a year after beginning the process. Each practice is different, with the related pros and cons being diverse too. It is most important to check the following before making the desire known and looking for buyers.

· Financial performance

· Profitable, popular, or in decline

· Can the situation be turned around with the practice made more attractive

· Is the generated income enough

· Are there other individuals sharing the profits

It is vital to have the answers ready and be prepared to improve the price so that it can be sold at a profit.

2. Improving Profitability- Simply checking the percentage of revenue to evaluate the practice is not the right approach. Instead, it is essential to have the business evaluated professionally before seeking buyers. Finding the “Earnings before Interest Tax Depreciation and Amortization (EBITDA)” is an accepted system of gauging the cash flow. One must focus on increasing the EBITDA as most dental practices accept cash even today.

3. The Right Team- Selling any healthcare practice, including a dental clinic, requires a team. Connecting with the best possible advisors to deal with the nitty-gritty can enable the dental professional and/or business owner to save money and time. Sure, the seller may be a highly qualified medical professional, but meeting business challenges and making the practice appear attractive to a prospective buyer is not something such professionals excel in. It is, therefore, essential to find support for the selling process by roping in an experienced accountant, solicitor, and business advisor to ensure success.

Getting in touch with a seasoned broker with experience in dental practice sales is hugely important too. Such individuals are likely to have a long list of interested buyers handy. While they can arrange visits and help with the negotiation, they are also adept at creating the sales pitch and listing the practice in a directory, thus advertising its impending sale. Picking and choosing the right client without breach of confidentiality is also their forte.