Preparing to Sell Your Dental Practice
Deciding to sell your dental practice can be a hard choice. If you’ve decided that it’s what’s right for you and your practice, it’s then difficult to know where to start! Here at CTC Associates, we have helped countless dentists relocate, sell, and purchase dental practices. We’ve compiled a few steps to take before selling your dental practice.
Steps to Take Before Selling Your Dental Practice
- Meet with your financial advisor – The first step to take is to make sure you can afford to sell your practice. Based on instability in financial markets, you may have to put your plans to sell on hold for a year or two.
- Ask about tax ramifications – The tax consequences of selling your dental practice will depend on the type of legal entity or corporation you formed. Ask your accountant about what you’ll be able to retain once your practice sells.
- Get a comprehensive valuation of your dental practice – A comprehensive valuation should account for all of the physical attributes of your dental practice, such as equipment and the office, as well as the intangible assets and goodwill.
- Stay motivated to keep working – If you know you’re going to sell, it can be tempting to slow down or work less. However, this can prevent you from gaining new patients, which can harm your practice’s value. Keep up with your same work schedule!
- Evaluate the condition of your office – First impressions are important to a potential buyer. Make repairs and cosmetic enhancements to both the inside and outside of your office. Clean up the exterior to improve curb appeal.
- Hire an attorney with dental experience – Having a great attorney who has dental experience can save you (and your purchaser) thousands of dollars. Ask your accountant or broker for referrals as they likely know attorneys with dental knowledge.
- Be realistic about timing – Some dentists we’ve spoken with expect to sell their practice within six months. This timing is unrealistic. Instead, expect the process to take between nine months to a year to sell.
If you have questions or concerns regarding the sale of your dental practice, please contact CTC Associates. We know that selling your practice can be a difficult and emotional decision and we’re here to help walk you through it!