The Professional Advisory
- 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
Volume 40: Taking Care of Business
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.