MORR Perspectives

Tracking your dental practice’s performance isn’t always easy with the amount of data you could be collecting—which means that identifying the performance indicators that are most important to your practice is essential. An obvious indicator, of course, is cash flow. Are you in the red or the black and by how much? However, while profit is often a clear marker of your current performance, it isn’t always a sure fire way to determine how your practice will fair down the road, particularly if you’re interested in selling in the near future.

Imagine this scenario: You have spent years, or possibly decades, growing your dental practice’s health, but as you approach retirement, your value isn’t what you thought it was.

If you are looking to expand, buying a second dental practice can be a great option to grow your current services, meet the needs of patients in multiple locations, and boost revenue.  But how can you ensure your new practice gets off on the right foot? On the buying side of a dental practice transition, the seller is your greatest asset.

Chances are that if you are selling a dental practice, you have been thinking about it for years. Regardless of whether you’ve been following a legacy plan, many of your practice transition details may remain unknown until you begin negotiations with the buyer. This makes negotiating one of the most critical components of selling a dental practice. When stepping up to the negotiating table, there are three things to keep in mind:

Whether you’re buying dental practice or putting one up for sale, the transition can be difficult, and navigating the maze of taxes and finances is quickly overwhelming. But no one said you had to go it alone. Why not enlist a team of experts to help you confidently manage the process?

Jumpstarting growth for your dental practice is easier said than done. Organic growth might help keep costs down, but additional services and longer hours may not seem appealing. Alternatively, investing in a second location can afford you the freedom to attract new patients, especially if you are looking at buying an existing dental practice. However, there’s never a guarantee that patients will willingly transition to a new dentist, which poses a significant risk to the buyer. The big question remains: How can you acquire new patients, while minimizing risk and increasing value?

Deciding to sell a dental practice is no small choice; it’s a decision to move on from one of your greatest investments and a sign that you’re moving in to the next chapter of your life. While every dentist likely has some idea of what retirement means for them, the details surrounding when to sell and how to get started are often left unrealized.