Selling a dental practice can take six months or longer in some cases. Potential buyers will do a thorough assessment to decide whether your asking price is acceptable and if your dental practice meets their requirements. When selling, your goal is to get the most profit from the transaction. These steps will help you to finalise the transfer of ownership and gain maximum profit from your dental practice:
6 Ways To Sell Your Dental Practice At Maximum Profit
- Set A Timeline Early- it is recommended to plan a year or more before selling your dental practice. This gives you enough time to get prepared and make your business more attractive financially.
- Organise Your Finances- potential buyers want the latest and most accurate financial information from your dental practice. Improve your ability to quickly get latest financial performance. Have a dental practice valuation prepared for the buyer. The most efficient way is to computerise all financial transactions. It can be as easy as having financial information generated by an accounting software. A summary can be sent quickly to potential buyers and this is a sign of good internal management.
- Improve Human Resources- a successful dental practice relies on capable and experienced staff. Your workforce is a critical asset and you need to focus on the well-being of your employees. They must be well-paid and have good morale. You may also need help from external consultants, such as lawyers, brokers, and accountants.
- Consider All Offers- if you receive multiple offers from potential buyers, it is important to review all of them in detail. Understand all conditions before choosing the best offer. Make sure the buyer shows genuine interest, is willing to cooperate, and responds to your counter-offers.
- Negotiate Effectively- if you receive a couple of interesting offers from buyers, it is time to negotiate for a better deal. The negotiation process can be exhaustive and thorough, requiring you to show all financial records and projection models. Make sure that your information is well organised and you can quickly provide any necessary details.
- Finalise The Deal- once the negotiation and due diligence processes have been completed, it is important to finalise the transaction. There could be final adjustments to sweeten the deal for both sides. Find out how to avoid paying too much tax and it may be necessary to consult an expert.
Contact Pluto Partners
To learn more reasons why dentists might want to get a dental practice valuation and sell their practices, contact Pluto Partners today and speak with a Healthcare Business Advisor who can answer any questions you might have.
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Dr Gursh Bajwa
Ascent Dental Group
As co-owner of multiple practices and having been through the processes of selling a practice previously. Max’s approach was in another league. I’ve no hesitations in recommending him to a colleague.