Volume 35: How Do I Prepare My Practice For Sale
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If your current paint or wall paper is marked, soiled, tattered or outdated, replacing it freshens and revitalizes the appearance of the practice space.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.
The Professional Advisory
- One Year Later
- Dealing with Unsolicited Offers
- Covid-19 Practice Sales Update
- When is the Right Time to Sell Your Practice and Why?
- Partnership Pitfalls
- The Real Cost of a Dental Practice Set-up
- Smaller Practice Realities
- Dental Market Update - 2019
- Creating Your Own Most Valuable Practice (MVP)
- Small Practice Economics
- The Market is Very Efficient
- How Can Dental Practice Values be Rising and Declining?
- Hygiene as a Value Driver
- The Value of a Good Team
- Is it Time to Move?
- Staging A Dental Practice
- The High Cost of Dying
- Patients - Attract and Retain
- Should I Stay or Should I Go?
- Is There a Buyer for Every Practice?
- Good, Better, Best - The Market has Spoken
- Buying Time
- Patients, Patience, Patients
- A Real Patient
- Why Do a Practice Valuation? I'm not Selling
- Irrational Exuberance or The New Normal?
- Do dental equipment and dental technology affect a practice value?
- Finding and Being a Mentor
- Bigger is Better
- Dave's Top Ten List for Buyers (Vendors should read this too!)
- How Well Do You Know Your Practice?
- Dave's Top Ten List for Vendors
- What will happen to dental practice Values in the next 10 years?
- Your Premises Lease is an Important Asset
- What are Associates Thinking?
- There is Life Outside the GTA
- When Is the Right Time to Sell My Dental Practice?
- Mergers are a Viable Option
- Is Your Associate an Asset or a Liability?
- Has your Practice Facility Kept Up With Your Billings?
- The 100 per cent of Gross Myth
- The Past, The Present and The Future
- Caveat Emptor
- Overpaid Long Term Staff
- Selling your Practice in Stages
- A Potential Pitfall of Selling Shares
- Value in Your Practice Through Balance
- Only Trusted Staff Can Defraud You
- To Own or Not to Own Practice Real Estate? That is the Question.
- Coping With A Large Patient Base
- Successful Dental Practice Transitions
- Taking Care of Business
- The Investing Dentist Phenomenon
- Two areas to focus upon that could negatively impact the value of your practice
- Organize your Debt in Order to Sell your Practice
- Having a Better Team
- How Do I Prepare My Practice For Sale
- How Do I Prepare My Practice For Sale? Part 3
- How Do I Prepare My Practice For Sale? Part 2
- How Do I Prepare My Practice For Sale? Part 1
- Advice to My Son or Daughter Graduating from Dental School
- Transition - What to Expect
- Discussion on Digital X-Rays
- Partnerships and Shotguns
- Strategic Planning - How to Get Started
- Calling All Vendors - Practices have Gone Up in Value
- Purchasers: Expect to Pay More for a Practice because of Lower Professional Corporation Tax Rates
- Matrimonial Practice Valuations
- Purchaser's Guide to Affording a Practice
- Location Improvements Throughout Your Career
- Small Practice Valuations
- Partnerships – The Best and The Worst
- Changing Location When the Opportunity Comes Along
- Visual Presentation of Your Practice
- Presentation of Charts
- Your Premises Lease Can Be Your Worst Enemy
- How to Select an Appraiser for Your Practice
- How Are Your Billing Ratios?
- It Pays to Invest in Your Tangible Assets
- The Importance of Separate Financial Statements
- Five Time Frame Levels to Sell a Practice
- 12 Suggestions to Safeguard Computer Data
- How to Buy a Visible Practice
- Why is there a shortage of good practices today?
- The Importance of Equipment in the Purchase of a Practice
- The Balanced Practice
- Will My Practice Be Saleable in The Future?
- Buyer Be Aware
- Excess Profit - The Second Key
- Patients and Profits are the Keys
- Plan Ahead