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ATTENTION ALL DENTISTS!

Here’s how you can get TOP DOLLAR when selling your dental practice:

Now is the best time for you to sell due to the low supply of and high demand for dental offices – coupled with the low, 15% capital gains tax rate.

Here are 7 ways you can get the highest price when selling your dental practice:

1. Generate steady gross collection levels.

Avoid, at all costs, a declining revenue situation. Buyers become very suspicious and cautious if the gross appears to be going down. When determining the value of a practice, banks only use the most recent down year and do not average the previous years.

Contact us today to find out the exact formula that banks use to determine your practice value.


2. Maintain a clean appearance.

Although the value of a practice is often determined by cash flow, the appearance of your office is extremely important to a buyer. Floors, carpets and walls must be clean and in tip-top shape. The operatories, lab, rest room and front desk areas need to be spotless. Supplies must be organized and equipment bright and shining.

Contact us today to learn about the practice aspects that have the largest impact on a buyer’s opinion.


3. Invest in modern equipment:

Buyers are highly influenced by contemporary dental equipment. Even if you just change the chair/unit /light in two rooms, your office will show far better than another with ancient equipment. And buyers feel that you are keeping up with changing times.

Contact us today to learn which 2 pieces of equipment have the most influence on a buyer’s decision and interest.


4. Disclose all discretionary expenses.

Often, sellers fail to remove these expenses from the books, making the overhead appear very high. This discourages a potential buyer since it makes the net cash flow appear too low.

Contact us today to find out about which financial statement elements most effect an accountant’s analysis of your practice.


5. Make sure your lease is transferable to a buyer.

A prospective buyer must have a lease in order to purchase your practice. And most banks will require a ten-year lease. Without a lease, the value of the practice may be significantly affected. The buyer must be able to either assume your lease or secure a satisfactory new lease with the landlord. Therefore, it is important that you have your lease reviewed by a professional to see if it is assignable and if it has renewal options built in to carry it through the ten-years. Your practice value will increase with a transferable lease.

Contact us today to learn about the top reasons a practice sale falls through.


6. Present credible data to support practice appraisal.

All young buyers are looking for data that is verifiable. They are looking for reports such as procedure code analysis, demographic reports, participating insurance reports, practice management reports, accounts receivable print outs, profit and loss statements from QuickBooks accounting, etc. Having this information in organized, reportable form lends credibility to your financial claims and makes it significantly easier to sell your practice.

Contact us today to learn which essential reports all banks and buyers are looking for.


7. Sell your practice NOW!

We are presently in a seller’s market with many more buyers than available sellers. There is a shortage of practices for sale. The typical younger buyer is loaded with dental school debt and does not have the courage to open up from scratch. Therefore, everyone is looking for a practice to purchase. Presently, the banks have plenty of money to lend at reasonable rates, plus working capital. Right now is the time for you to get top value!

Contact us today to find out how waiting will seriously affect the sale of your dental office.


We offer a free consultation and a free in-office analysis and appraisal.