Know the Right Time to Sell Your Dental Practice and How to Proceed

You’ve put a great deal of time and effort into running your practice. It may be one of your greatest accomplishments and the reason you get out of bed each day. However, it may be profitable to sell your practice and move on to the next venture, even if you’re thriving. But how do you know when it’s the right time to sell, and how do you proceed? To help give you a better understanding of when it’s the right time, Dental Broker Florida shares the following guidance.

Knowing It’s Time

Perhaps you see a new opportunity opening up for you and can’t manage both your current practice and this new endeavor. On the other hand, maybe you’re noticing that your practice just isn’t bringing in nearly as much profit, no matter how much you invest in marketing. Other potential reasons to sell include if you’re retiring or if running your practice isn’t fulfilling anymore.

Determining Price

Once you decide to sell, your next step is to establish a fair price for your practice. Bear in mind that your practice’s value varies based on how much collection is doing year by year, its size, inside office conditions, demographics and kind of dental procedures.

Besides the kind of practice (PPO’s, FFS, HMO’s and/or Medicaid), other factors affect your sale price, such as spatial location and the average revenue (Collections). To help you determine the best price for your practice in its entirety, work with the experts at Dental Broker Florida.

Provide Your Annual Report

One of the key considerations for potential buyers will be your practice’s financial stability and performance. An annual report is an essential tool for demonstrating these factors. These reports can be filed annually with the state by you or via an annual report service. The report should include a comprehensive overview of the company’s financial statements, as well as detailed information on its products, services, and market position. By offering this information, you can give potential buyers the confidence that your business is a sound investment.

Finding Prospective Buyers

You can find a potential buyer by making connections. Get to know people in the area who value your service. Think back to who has asked you how you began. While these individuals may not be ready to embark on the journey of entrepreneurship starting from scratch, they may be willing to pick up where you left off.

Attend events where investors may be present and get your name out there. Whenever you talk to friends and family, mention your plan on selling your practice. Word of mouth is oftentimes a beneficial marketing tool.

Additionally, post in your local newspaper or online on websites that specialize in business listings.

Getting Your Financial Statements in Order

When preparing your finances, consider what a buyer would want to see before proceeding with the purchase. This means you should have at least 3 years of profit and loss statements, balance sheets, and federal income tax returns.

You also need bank statements as well as a year-to-date comparison profit and loss statement. All the aforementioned information combined gives a prospective buyer enough insight into your business to give them an idea as to whether your company is a profitable investment.

Keep in mind that if your practice is still young, you will need to include information from the start, including when you may have been having to use an invoice maker instead of formal accounting software. Be sure that you have all your practice’s financial statements and records at hand.

Decide Carefully and Prepare Adequately

When selling your practice, there’s so much to consider. Start with the basics to make the process less overwhelming. Get a good read on whether it’s time to sell, and work with professionals to determine the ideal price. Have your annual report ready for potential buyers and start to put all of your financial documents together. There will be other details to tackle with, but having an idea of the basics will help you thoroughly prepare for the deal to maximize your profit and experience for a smooth, speedy sale.