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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 40: Taking Care of Business

Download the PDF version now!

I am fortunate to have David Lind here to service our clients while Val and I went for a cruise in the Orient. Beijing for three days then the cruise; Tianjin to Shanghai, Okinawa, Taiwan, Hong Kong, two ports in Vietnam, Singapore then Bangkok for three days. We stopped in Vancouver both directions and visited some friends. A great vacation! But when we arrived home we had five inches of water in the basement. Both sump pumps failed.

I thought back a few years when our agent suggested that we should put sump pump insurance on the house insurance. I am very glad that we did as two thirds of the basement is finished space and the replacement of the furnace, the freezer and the reconstruction of the walls is all covered by insurance.

This in turn reminds me that we tell our clients they should have a valuation and update it on a regular basis because you never know what is around the corner in life. If the flood comes in whatever form, it is nice to know that the valuation is complete and current. You have taken care of business and have the assurance that you have done everything reasonable to protect your asset, the practice. Too often spouses are left to pick up the pieces and it is a lot harder if they have not been involved in the business.

The valuation can be used for retirement planning. Often the practice and your home are your two main assets. But more than this, the presentation of the valuation should draw your attention to areas of potential improvement that can be carried out over future years to improve the value of the practice. There is time to consider even such basic concepts as moving to a new location. See my article in Volume # 32, How Do I Prepare My Practice For Sale? eight to ten years out.

When dentists are about 45 to 50 years old they come to the realization that they will not live forever. We do very few valuations for retirement planning for dentists under 40. We do valuations for partnership break ups, matrimonial purposes, and for sale when the dentist is going back to school or moving to the U.S.A. (in fact we just completed one of these this month).

Most valuations that we do are not for immediate sale purposes. We think it is wise to have a valuation done eight to ten years before you wish to sell your practice. This provides planning time with regards to equipment replacement, lease renewal, staff requirements, and relocation options. Think of us as another set of eyes.

With regard to estate planning, you will need a current valuation to sell your practice. The purchaser’s bank will require a current valuation. Think of an update of an existing valuation costing about $500 per owner per year. As with my flood, this is a small price relative to the benefits of keeping a current valuation in hand.

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