You have worked hard, and it’s time to start planning to sell your practice. Whether you are thinking of selling in a year, or ten years, now is the right time to start planning. This is an emotional time, and the process can be stressful, but building the right team around you can ease the burden and allow you to focus on what’s most important: yourself, your family, your patients, and your staff.
Assembling the right team is crucial for a smooth transition. For an in-depth look at the key professionals who can help guide you through this process, check out our detailed breakdown here.
The Right Buyer: More important than the deal is the person in the deal. This mantra is perhaps most appropriate when applied in the context of finding someone to carry on the legacy you have worked so hard to establish. If you associate with good people, good things tend to happen, and vice versa. Be patient; don’t sell your practice to the first willing buyer to knock on your door, waving a check. Take the time to meet potential buyers in person, and get to know their values, their work ethics, their clinical skills. After all, you will promote them to your patients and staff as someone whom you trust and who will continue to provide the level of service they have come to expect.
You have many options to consider when looking for the right buyer:
- Hire an Associate: Hire a recent graduate as an associate and include a future arrangements clause into the employment agreement giving them the right (not the obligation) to purchase the practice in X years. If you want to keep your options open, you may give them the right to “discuss the potential to purchase” in X years. It is important to be honest and communicate your intentions with the associate from the start. This will give you, your staff, and your patients a chance to evaluate their clinical skills, personality, and ethics. It will also give the potential buyer a chance to evaluate you and your practice and decide if this is an opportunity worth pursuing. Though nothing is guaranteed, this is the easiest and most efficient way to ensure a smooth transition to the buyer. Of course, this approach only works if there is enough demand for services to justify the addition of another doctor. If there is, you will have a good shot at a successful transition, and your revenues should increase from the new doctor’s production during the associateship period. To find an associate, post a job to the local dental association, dental school, or other job posting platforms. When posting, be sure to advertise that the job is a short-term associateship leading to ownership.
- Post the Practice for Sale: Post the practice for sale with the local dental association, dental school, or other platforms. Be sure to draft a narrative that paints an accurate picture of your practice while avoiding specifics that could tip off the surrounding community (and referral sources) of your pending retirement. Search the above-mentioned platforms to get a feel for the language other sellers are using.
- Hire a Broker: Hire a dental practice broker to find a buyer for the practice. They will typically utilize the same resources mentioned in option 2 above, so you may consider posting the practice yourself before hiring and paying for a broker.
- Talk to Friendly Competitors: You may consider reaching out to neighboring dentists or a dentist in your local study club whom you trust to have discretion. A local dentist may be interested in your patient base, your location, your equipment, or all the above. Choose someone whose reputation you know and someone who is already established in the community. Knowing that your patients will be taken care of by someone you trust and respect can help put your mind at ease. This option is worth considering if you have had difficulty finding a buyer or if you know of a local dentist who is looking to expand.
- Do Nothing: This approach is not for everyone and should only be considered when all other options have been exhausted. If you have not found a willing buyer and you are close to retirement, you may consider working a few more years, then closing shop. Depending on the size of your practice, it may make economic sense to work these extra years to earn what would have been the practice sale price while simultaneously delaying dipping into your retirement funds. Any sale of assets, patient lists, or goodwill after this will be a bonus. But, you will need to make arrangements for your patients’ care.
At Collier & Associates, we bring decades of experience to help you navigate the complexities of selling your dental practice. Let us provide you with personalized insights and expert advice to ensure you make the best decision for your future. Schedule a consultation with us today and let’s explore your best options for selling your practice.