During sale of a dental practice, everyone has questions best answered by qualified professionals. At Encompass IHC, we understand the need to ask these questions and feel secure in your decision to sell. This is why we take a consultative approach to the selling process, using our experience as dentists and practice brokers to provide the answers you need. Below are some of the most commonly asked questions by dentists selling a dental practice in Las Vegas.
How do you determine the selling price for my Las Vegas dental practice?
Practice value in Las Vegas or anywhere else comes only after close consideration of two primary factors, risk and net income. In essence, high risk usually equates to low value, whereas low risk equates to higher value. To determine the value of your practice, your consultants evaluate three years of tax returns, profit and loss statements and other financial information, particularly the past year’s cash flow. Although this process proves complex, it usually provides an accurate valuation.
Should I invest to increase value, before selling a dental practice?
The best ways to increase value before selling a dental practice include aesthetic, financial and procedural improvements. You can consider these upgrades wise when you intend to sell your practice within the next 12 to 36 months.
When selling your practice consider upgrades like:
Obviously, you do not want to spend too much money where you cannot realize immediate return on that investment. According to recent studies, simply refreshing your office aesthetics through the above methods can bring an immediate 10 to 15 percent increase in your income. These improvements also position the practice as more attractive to buyers, making it turn-key ready.
How long does selling a dental practice take?
Selling a dental practice in Las Vegas depends on many factors. Of big influence is your location, with good locations in active areas selling as quickly as 1.5 to three months after valuation. Lower demand areas take longer, often stretching to 24 to 60 months for sale.
Of course, many variables affect how long it takes to sell a practice. Having a qualified team of dental practice transition consultants can help you shorten your sale time frame.
How does dental practice transition take place?
Each transition is unique. But typically, with expert consultants on your side, the process of practice transition includes the following steps:
Acceptance or negotiation
General terms establishment
Buyer due diligence
Contract preparation and review
Lease negotiation and assignment
Contract final negotiations
Of course, your patients are a big factor in the transition. You must be able to endorse the new owner, for your patients to accept the change. Your staff must exude this endorsement, too. Optimally, your buyer will not make major changes in how the office works or its procedures for an adjustment period. The fewer changes patients experience, the better for all concerned.
Will the seller get 100 percent financing, or do I have to carry a note?
When selling your practice, you certainly hope for the smoothest possible financial process. In most of these transactions, buyers gain 100 percent financing. Many companies focus on dental practice financing, with local banks also finding these transactions attractive. Your buyer can likely also acquire working capital.
Of course, some buyers do not have the financial background to secure optimal financing. In these cases, you have an option toward carrying a portion or all of the note. But having an experienced broker helps you avoid struggles in these areas.
As you consider buying or selling a dental practice, call upon the experts at Encompass IHC. We have a proven track record of helping dentists just like you succeed in finding the right practice to buy or selling an existing one. This experience comes from a strong background as practice brokers and dentists, ourselves. Call Encompass IHC at 919-395-0444 for a consultation about your transition.