When the time comes to sell your dental practice preparation is key. To ensure you achieve the optimum value you must be able to show any potential buyer that your practice will perform well in the future and has the potential for growth.
However, there is an endless maze of considerations and potential stumbling blocks to navigate in order to achieve success, and without assistance and guidance from experienced advisers, you can find yourself stuck in the middle of a complex labyrinth.
The best option is to turn to a company who can offer both marketing expertise and professional accountability. Ideally you would choose an agency that has proven experience in the dental sector and one that also has professional accreditations to boot.
The first thing to do is to ensure that your property lease is in order and that you have sought out sufficient guidance. If your property is leasehold, it is important to offer an appropriate lease term to make it worthwhile for the buyer.
Following this any staffing issues that your practice might have should be addressed. An experienced buyer will understand that every business has its own operational challenges, therefore to preserve the credibility of your business valuation absolute honesty is vital. If you paint too flawless a picture then a potential buyer may become suspicious. Therefore if your practice has vacancies, you should not try to hide them.
However, having a lot of staffing issues can also present problems and if you choose not to replace missing associates, turnover will go down and this will affect the value of your practice. Too much vacant chair space will cost you in the long run and will be reflected in your income and valuation, so try to avoid this where possible.
It is important to collate together all the crucial pieces of information a potential buyer might want. This is the most significant aspect of getting ready for any sale and failing to sufficiently plan in advance may ultimately affect the final transaction. Often, deals can be agreed quickly but end up falling through due to a lack of adequate
planning and preparation.
Establishing that all profit and loss accounts are relevant and up-to-date is essential; you will need to gather the latest NHS vital signs reports, as well as all other due diligence information that any reasonable purchaser might want.
Regulatory and compliance data will also need to be checked so that it is accurate and correct and made readily available. Your practice clearly wouldn’t be trading if you didn’t comply with industry regulations, but do you have all the necessary documentation to hand if it was requested?
Finally, first impressions of the practice are very important and the asking price is a significant factor of this. Therefore valuation and pricing your business correctly for the market is paramount; getting this right will make all
the difference to your sale. Any sensible buyer or interested party will have your practice independently valued prior to purchasing; if your price is unrealistically high it will get challenged, so it is important to get it right.
Analysing your own business as if you were purchasing it will help to give you an insight into what others might see. Ask yourself: how does it look and feel? Is it fit for purpose? Speak to your existing patients for their perspectives and opinions. It may also help to view other similarly priced practices: would you consider them to be reasonably priced? Your expert adviser will have comparable evidence from which to draw – the more experienced the adviser, the more evidence there will be.
Choosing a company that understands the dental industry, like Christie + Co, will ensure that all potential considerations are covered, your practice is fully prepared and correctly priced, and that your best interests as seller always come first.
Preparing to sell a practice comes with many challenges, however, with the right preparation, coupled with the guidance and experience of experts, some confusion can be avoided.