Selling your dental practice in Houston, Texas or elsewhere in the U.S. is a major life transition. You must take this decision seriously, especially as your business heads to the real estate market. With many things to do to prepare your practice for sale, what are the most important considerations? What steps should you take, before selling?
Get Your Financials Straight
Before calling practice brokers, you must ensure that selling your dental practice makes financial sense. Have an advisor prepare a financial plan to learn whether you can afford to sell. Also meet with your accountant to learn of the tax ramifications of selling your dental practice. Find out what money you will keep in a transaction.
Know the Value of Your Dental Practice
When you work with a broker, ensure you retain one able to complete a certified valuation. This valuation must include your physical assets and properties in Houston toward a detailed analysis. Included in your assets are intangibles of the practice, too.
Keep Working a Consistent Schedule While Selling Your Dental Practice
After deciding to sell your practice, it is not the time to slow down or work less. Keep accepting new patients in order to preserve your practice’s growth, gross receipts and sale price. Besides, this may be the last hard work you do before your retirement when you sell your practice! Why not give the extra oomph? It will likely be a very profitable endeavor when preparing to sell your dental practice.
Check Associates’ Employment Agreements
Work with an attorney to ensure you have Employment Agreements in place that protect your practice value. Look for inclusion of “consideration” as additional compensation. Also ensure the agreement contains a non-solicitation clause and legitimate restrictive covenant.
Review Your Facility’s Condition
Your Houston, Texas practice must make a great first impression through its condition and appearance. Although you do not want to go through a major redesign, you should consider how the practice looks from all angles. Does it need new carpet, paint, seating, landscaping or other updates? Even if your property looks dated, ensure it appears clean, well-maintained and appealing.
Clear Out Bad AR Debts and Collect those Aged 90 Days or Older
Do not let your patient accounts weigh down negotiations. Clear out accounts you cannot collect and assert the need to pay for those aging over 90 days.
Ensure Your Rates Are Competitive in the Market
Retain a professional to conduct a practice analysis and ensure your fees are in line with your local market. When you have 12 months or longer before a sale, increase your fees to a competitive standard. This increases your income while also improving practice value.
Base Your Sale in Reality
One of the worst things you can do to yourself when selling your practice is to put yourself under unreasonable pressure. Do not expect a quick sale, such as in six months or less. Instead, be practical. Give your broker a year or longer for selling your dental practice. Of course, you can always hope for better circumstances, but be reasonable in your expectations.
When considering selling your dental practice in Houston or another location in the U.S., you need professionals with dental practice experience on your side. Find attorneys, accountants and brokers with a background in the dental field. The last thing you want is to serve as a test case for an inexperienced service provider. If your current team does not have this experience, ask for referrals to some who do.
To sell your dental practice, you find the most qualified professionals at Encompass IHC. With a background in dentistry and dental practice ownership, Encompass IHC leaders understand your position and the value of your assets. We have helped dental practice owners in buying and selling, as part of transactions from coast-to-coast. Call Encompass IHC today at 919-395-0444 your free consultation and to learn more about selling your dental practice in Houston.