Consider the following points that will help you maximize your selling price:
- Focus on boosting your practice value, by improving revenues.
- Assemble a professional transition team.
- Ensure you will have enough money after the sale to lead the life you want to live for the rest of your life.
- Know when you are truly ready to sell.
- Don’t focus solely on money.
- Choose the right person to whom you will sell.
- Build a strong team in advance.
- Connect with the buyer but don’t negotiate with them.
- Put yourself in the buyer’s shoes.
- Give your clinic a facelift.
- Minimize your post-sale obligations.
With the above points in mind, here is a checklist of the key things you need to do to sell your practice for the best possible price.
- Improve the conversion rate of phone inquiries into appointments.
- Increase the number of active patients who are scheduled for their next appointment.
- Reduce the practice’s patient attrition rate.
- Reactivate your inactive patient base.
- Hire an office manager whose responsibility it is to ensure you are meeting your practice revenue targets.
- Retain a CPA experienced in working with dental practices.
- Retain a lawyer who works with dental practices.
- Bring onboard a quarterback (i.e. a transition specialist or broker).
- Do the numbers; discover how much money you really need to retire comfortably.
- Talk to your financial planner and your CPA about setting up a worry-free retirement portfolio.
- Take the mirror test. When you first look at yourself in the mirror each morning ask yourself, “If I had only a few days left on this earth, would I go to my practice today?” If, for five mornings in a row you answer in the negative, you are ready to transition into retirement without looking back with regret.
- Think about your legacy, and your reputation. You worked hard to build a thriving career on your integrity. For a few more dollars, don’t let a stranger destroy it.
- Sell to a compatible person whose values you share, and who aligns with your practice philosophy.
- Have a buy/sell agreement to ensure you get a fair value for your practice when you leave.
- Ensure your team is a strong asset in the sale of your practice. If necessary, “clean house” well in advance of looking for a purchaser.
- Build a trusting relationship with the prospective buyer, without getting involved directly with the negotiations.
- Don’t be greedy. Leave some juice on the table for the buyer, it will benefit you in the long run.
- If your clinic is a little worn, consider enhancing its “curb appeal” invest in a facelift. Hip practices sell for more.
One last thing, once it’s over, don’t look back!
