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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 35: How Do I Prepare My Practice For Sale

Download the PDF version now!

Part IV – I want to sell my practice, now

The time for planning has passed. Either the prior planning took place or it did not. Let us assume your planning was limited. What can be done now? The biggest thing today is to make your practice showable. Get rid of those piles of paper, package off the old models, look at your carpets – did they not have a good winter? If you think that the purchaser would like to stay in the same location consider whether the carpets should be replaced – especially in the high traffic areas.

Review your charts. If there are a great many charts where the patients have not been in for four or five years or more, glean them down to more active charts. Purchasers are not impressed with a lot of charts if they are not active – in fact it is a turnoff. A good rule of thumb is to have as many inactive charts (over two years since the last appointment) as there are semi-active charts (patients who were in over a year ago but more recently than two years). The chart drawers should not be overstuffed to the point where one has difficulty removing them. Also ensure that each pouch or folder has only one patient’s chart in the folder, not the whole family.

If your current paint or wall paper is marked, soiled, tattered or outdated, replacing it freshens and revitalizes the appearance of the practice space. Equipment should be in good working order or removed. Buying new equipment may not be productive but good used equipment may be called for.

Replace burnt out light bulbs anywhere and everywhere, including signs. Clean out the refrigerator of old "stuff". Dispose of expired dental supplies. Clean off your desk – this may be a big job. Tidy up your bookcases and dispose of those old textbooks that you never look at. Throw out old and broken toys in the children's area. Tighten up the hinges on the doors in the lab and the operatories. Replace poor lead aprons which only last about five to seven years. Try to see your practice through a purchaser's eyes.

Once the above is complete it’s time to prepare the valuation of your practice. This valuation may bring out other "presentation" issues. The valuation is needed for the purchaser to borrow the money from the bank.

Now you are ready to sell your practice. You should be prepared to understand what you want in terms of transition. Retirement, vacation time, transition period, taxes and selling shares or assets are some of the additional considerations. Having an accountant, a lawyer and a broker on your side is important. The better you can describe what you want to the broker, the easier it is to achieve.

OVERVIEW: Assuming your billings and patient base are all set and ready for the sale of your practice, now is the time to focus on having a tidy and attractive office.

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