Many young dentists dream about the grand opening of their very own dental practice. Of course, after many years of running their own business and serving the community, many older dentists dream of one day selling their dental practice and retiring to the beach.
That said, selling a dental practice isn’t necessarily a quick process that a busy professional can choose to do at any time they please. Although many individuals in the workforce choose to retire or sell their business before they turn 65, the average retirement age of dentists was 68.9 years old as of 2017. That being said, age doesn’t always determine the right time to sell. If you’re eventually looking to sell your dental practice but aren’t sure when you should take that next step, you may find this post to be helpful.
When Is the Right Time to Sell a Dental Practice?
- When Your Practice is Thriving: Dental practice sales are the most successful when business is booming. Of course, this may make it a bit more difficult for the owner to walk away. But as the saying goes, you should quit while you’re ahead sell your practice and make a lot of money while you’re ahead. If your patient volume is high (with lots of new patients and a low drop-off rate) and a high production per patient, high profitability, and lower overhead, these positive factors will likely have a substantial impact on the value of your practice overall. That, in turn, will make it easier to find viable candidates who are seeking a Houston dental practice for sale and will allow you to receive more enticing offers.
- When Your Practice Looks Its Best: Certainly, the value of your practice determined in a dental appraisal will matter a lot to potential buyers. But don’t forget the importance of the visual impression your practice makes. You should approach selling your practice like selling a home, in that it should be attractively staged for buyers. Up-to-date decor, fresh paint and flooring, and state-of-the-art amenities can go a long way in enticing a buyer. Having good signage and accessible parking can also be real perks. When your practice is one of many on the market, you’ll need to do everything to stand out for the right reasons. Prior to listing your Houston dental practice for sale, make sure you’ve put in some work to update it and ensure that it looks its best.
- When You Are Financially Stable: In addition to having a profitable practice, you’ll also need to assess whether or not you can actually afford to sell your business. The sale of a dental practice will go only so far. You’ll need to ensure that your retirement savings are fully funded prior to selling. Although it is possible to stay on with the practice after you sell (depending on the agreement reached between you and the buyer), this type of arrangement can be a challenge for all parties involved. Ideally, you’ll want to make certain that you can continue to live off your pension after your practice income has been terminated. Even if your practice is valued at a high amount, keep in mind that the proceeds from your practice sale will likely not be enough to take care of all your financial needs in retirement. As a result, you may need to keep working for longer than you’d planned prior to selling your practice for best results.
- When You Are Emotionally Ready: This is one of the important considerations when listing your Houston dental practice for sale. If you are not emotionally ready and prepared to give up practicing dentistry, you may be inclined to make choices that could end up sabotaging the sale. Being unwilling to compromise or failing to accept the true value of your practice can cause deals to fall through. Dental practice owners who are not quite ready to move on to new adventures may do well to continue practicing until they feel it’s time to pursue other interests. However, if you’re tired of practicing dentistry and already feel excited to move on, you might consider preparing your Houston dental practice for sale.
- When You Can No Longer Serve Your Patients: In some cases, selling a practice comes out of a necessity, rather than a desire. An owner may need to come to terms with the fact that they are struggling with physical or cognitive restrictions that may keep them from performing at their best. Although these developing impairments might be just starting to emerge, it’s important to plan ahead for the future. If you or others feel that the effects of aging may impede your ability to serve your patients as you have in the past, it’s probably a good idea to consider the benefits of selling your practice. Even if you have a number of good years left, putting a plan into action now can allow you to avoid a high-stress scenario later on.
If you’ve determined that now is the right time to prepare your Houston dental practice for sale, we’re here to help ensure a smooth transition. To learn more, please contact us today.