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Selling a Dental Practice
When you’re thinking about selling your practice, here are some things to consider:
1. Make a list of the reasons why you want to sell all or part of your practice. Think about each reason and write down the benefits you hope to realize. Talk about your list with one or more trusted advisors to see if your hopes are realistic.
2. Determine the best timing for your sale. To do this, you need to know when you can afford to make the sale. You need to understand your own situation well and plan ahead for your financial needs and wants. What is your practice worth and how long will it take to sell it? Consider a pre-retirement evaluation and practice appraisal.
3. Think about taxes. Will you have enough money after paying taxes? What tax strategies can enhance your net worth after the sale? Are there creative ways to shelter a portion of the sales price? Ask your tax advisor about how to use qualified retirement plans, equipment leases to avoid depreciation recapture, tax-deferred exchange, charitable trusts and foundations, and other creative tax strategies.
4. Explore the possibilities of a one-year practice-enhancement program to increase the value of your practice prior to putting it on the market. Solve a few problems, get your fees where they need to be, reactivate your inactive patients, update your systems, and make your practice more attractive to a potential buyer. Ask a consultant for the best strategies for your practice sale.
5. Find out how a retire-in-practice program might be more enjoyable and profitable than an outright sale. Options to evaluate can include a phased sale, partial sale, an associate or partner, reduced work schedule, developing a specialized practice in the procedures you enjoy most, and limiting your practice to the patients you most enjoy.
When you think about selling your practice, think about your reasons. Seek expert help. Plan ahead for best results.
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