Selling Your Dental Practice? Here's What You Need to Know
It is a pretty monumental task to sell a dental practice. You have put up so much time and effort into setting up the practice; you need to ensure that you sell it to the right person for the right price. Therefore, you must prepare yourself financially and mentally in advance.
Following are some things dentists should know if there are planning to sell their practice, as it can make the transition smoother and less daunting.
- Start Early: No matter how hard you try, you won't be able to sell your dental practice overnight. It is a process that can typically take up to 1 year. It often hinges upon the owners' financial plan as they dabble with fundamental questions such as, "When can I afford to do this?" and "Is this the right time?" The answers can be obtained for most people by doing a quick review of their cash accounts, investment, and individual retirement plan. Nevertheless, it is important to start thinking about it in advance when you have ample time to evaluate your assets and consider your options.
- Have Realistic Expectations: A common mistake most business owners make is having a flawed view of their business's market value. They assume that a buyer will give them three to five times earnings before interest, taxes, depreciation, and amortization (EBITDA). Although small businesses could traditionally expect this in a sale, it isn't that simple. Various factors can contribute to a sizable gap between the worth of the practice on paper and what buyers are willing to pay for it.
If you plan to put up your established dental practice for sale, one of the best decisions you can make is hiring an experienced dental broker. A dental broker is an expert who will guide you through every step in the transition process of a dental practice.
If you reside in Colorado, Wyoming, Idaho, Utah, Arizona, Alaska, or Hawaii, visit CTC Associates now.