According to this video, having a retirement plan is one of the most vital things to have before selling a dental practice. There are a few other key aspects to consider before selling a dental practice.
Begin thinking about selling early. Selling a dental practice can be a lengthy process.
Dentists should ask themselves various questions before proceeding with their plan. First, they should determine whether they can afford it and establish when would be the best time to sell. Evaluating their cash accounts and investments can be crucial to find relevant answers.
Have realistic expectations about the practice’s worth. Often, dentists have an escalated perception of how the market will estimate their practices. For example, they may assume that potential buyers will grant them five times EBITDA (earnings before interests, taxes, depreciation, and amortization). However, this is not always the case.
Suppose a dentist is around 60 years of age. Their patients are likely to be around the same age. It is worth mentioning that older patients are diminishing assets. That means there may be a considerable gap between what buyers are willing to pay and the actual worth of selling a dental practice.
Before selling your practice, upgrading essential facilities and equipment will help maximize the practice value. Dentists should develop advanced operations to allow new owners to take over without incurring significant capital costs. .
