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Articles

The Professional Advisory

  1. Is it Time to Move?
  2. Staging A Dental Practice
  3. The High Cost of Dying
  4. Deal-Busters
  5. Patients - Attract and Retain
  6. Should I Stay or Should I Go?
  7. Is There a Buyer for Every Practice?
  8. Good, Better, Best - The Market has Spoken
  9. Smooth-Sale-ing
  10. Buying Time
  11. Patients, Patience, Patients
  12. A Real Patient
  13. Why Do a Practice Valuation? I'm not Selling
  14. Irrational Exuberance or The New Normal?
  15. Do dental equipment and dental technology affect a practice value?
  16. Finding and Being a Mentor
  17. Bigger is Better
  18. Daves Top Ten List for Buyers (Vendors should read this too!)
  19. How Well Do You Know Your Practice?
  20. Dave
  21. What will happen to dental practice Values in the next 10 years?
  22. Your Premises Lease is an Important Asset
  23. What are Associates Thinking?
  24. There is Life Outside the GTA
  25. When Is the Right Time to Sell My Dental Practice?
  26. Mergers are a Viable Option
  27. Is Your Associate an Asset or a Liability?
  28. Has your Practice Facility Kept Up With Your Billings?
  29. The 100 per cent of Gross Myth
  30. The Past, The Present and The Future
  31. Caveat Emptor
  32. Overpaid Long Term Staff
  33. Selling your Practice in Stages
  34. A Potential Pitfall of Selling Shares
  35. Value in Your Practice Through Balance
  36. Only Trusted Staff Can Defraud You
  37. To Own or Not to Own Practice Real Estate? That is the Question.
  38. Coping With A Large Patient Base
  39. Successful Dental Practice Transitions
  40. Taking Care of Business
  41. The Investing Dentist Phenomenon
  42. Two areas to focus upon that could negatively impact the value of your practice
  43. Organize your Debt in Order to Sell your Practice
  44. Having a Better Team
  45. How Do I Prepare My Practice For Sale
  46. How Do I Prepare My Practice For Sale? Part 3
  47. How Do I Prepare My Practice For Sale? Part 2
  48. How Do I Prepare My Practice For Sale? Part 1
  49. Advice to My Son or Daughter Graduating from Dental School
  50. Transition - What to Expect
  51. Discussion on Digital X-Rays
  52. Partnerships and Shotguns
  53. Strategic Planning - How to Get Started
  54. Calling All Vendors - Practices have Gone Up in Value
  55. Purchasers: Expect to Pay More for a Practice because of Lower Professional Corporation Tax Rates
  56. Matrimonial Practice Valuations
  57. Purchaser's Guide to Affording a Practice
  58. Location Improvements Throughout Your Career
  59. Small Practice Valuations
  60. Partnerships – The Best and The Worst
  61. Changing Location When the Opportunity Comes Along
  62. Visual Presentation of Your Practice
  63. Presentation of Charts
  64. Your Premises Lease Can Be Your Worst Enemy
  65. How to Select an Appraiser for Your Practice
  66. How Are Your Billing Ratios?
  67. It Pays to Invest in Your Tangible Assets
  68. The Importance of Separate Financial Statements
  69. Five Time Frame Levels to Sell a Practice
  70. 12 Suggestions to Safeguard Computer Data
  71. How to Buy a Visible Practice
  72. Why is there a shortage of good practices today?
  73. The Importance of Equipment in the Purchase of a Practice
  74. The Balanced Practice
  75. Will My Practice Be Saleable in The Future?
  76. Buyer Be Aware
  77. Excess Profit - The Second Key
  78. Patients and Profits are the Keys
  79. Plan Ahead

Volume 11: Five Time Frame Levels to Sell a Practice

Download the PDF version now!

Selling a dental practice takes time. There are several things to consider, including location, patient base and the age of equipment that are key to the length of time it takes to sell a practice. Here are five levels of demand to consider when considering the time frame to sell your practice.

  1. Proximity to Toronto. The closer you are to Toronto the higher the demand. That is, there are more purchasers looking to buy a practice in the Greater Toronto Area (GTA) than everywhere else in the province combined.If you have a practice in a high demand area with contemporary assets and a good size patient base, one should anticipate a shorter time frame to sell the practice and it should have a substantial value. But if you have excellent equipment and leaseholds with only a limited patient base, this is not a good situation as the purchaser is probably looking for a good patient base.
  2. Cities with universities. The second most sought-after locations are midsized cities in southern and eastern Ontario that have universities. These include Ottawa, Kingston, Hamilton, St. Catharines, Kitchener/Waterloo, London, and Windsor. A practice in one of these areas that has relatively new equipment (8 to 12 years old) and a good patient base should sell within a period of two to four months.
  3. Commuting distance to university centres. The third most sought-after locations are the communities within easy commuting distance of the midsized university cities. Again, a practice in one of these areas that has reasonably new equipment and at least 1,500 patients should sell within two to four months. If the practice has older equipment, expect it to sell within four to six months.
  4. Centres away from university communities. Less desirable areas include cities and towns that don’t have universities. In these areas, a practice with relatively new equipment and a good patient base could sell within four months to one year. If the practice has older equipment and a limited patient base, it may need to be sold to another dentist in the area who would merge it with his or her current practice. We have just sold a good practice in level 4 in six months.
  5. Northern Ontario. The least sought-after practices are in this area of the province. For a buyer, Northern Ontario is the best place to find an inexpensive practice. The cost of rent and staff is lower than in other centres. The lifestyle is more relaxed but the demand for practices is the lowest.It’s difficult to predict how long it would take to sell a practice in this part of the province because factors such as airport accessibility and who the major employers are in the community come into play

General Rules

As a general guideline, patients in the GTA are very valuable because competition is so great. As a result, the equipment and leasehold improvements in the practice have less importance. In lower demand areas, meanwhile, the equipment and leaseholds tend to be a determining factor in the salability of the practice because there is seldom a competitive situation for patients.

If the practice is properly valued, the above time frames are reasonable in most situations but there are no guarantees.

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