Michael Edwards discusses how dentists can get the best price for their practice.
Earlier this year, I discussed why now is the time to consider selling your dental practice. Have you given it some thought?
Whether you are 35 or 55, every practice owner should be planning the sale of their practice on an ongoing basis with a view to maximising the return on their investment now and in the future. Maximising profitability of your practice ahead of a sale is of fundamental importance as this will be one of the two key components that ultimately drive the sales price, also allowing you to benefit from improved returns while the practice is under your ownership.
This is easier said than done, but developments with practice management and cloud-based bookkeeping software are making it easier to analyse and benchmark performance against peers while maintaining easy-to-access digital records. It is certainly worth dedicating time to regularly review practice performance with your key stakeholders, including practice managers, and seek advice if you require support.
The other key component of maximising your sales price is driven by the sales process and the negotiations which should be handled by experienced corporate finance advisors. One of the key negotiations will be around the structure of the offer and the tie-in period for the sellers following completion of the transaction. I advise appointing experienced negotiators to handle these discussions for you.
It is also important that the tax implications of your practice sale are fully considered as part of every sales process and therefore crucial that you have experts as part of your advisory team.
Choose an advisor who has the ability to support you throughout the sales process, allowing you to focus on delivering patient care and running your practice.
For more information contact Michael Edwards (firstname.lastname@example.org) or your usual AAB Contact.