Selling a dental practice is often a long and challenging process. As with any large business transaction, road bumps are sure to come up along the way. If you aren’t careful, however, certain mistakes can turn those road bumps into a huge road-closing obstruction that completely derails the process—resulting in wasted time and money for both the seller and the potential buyer. Here are some of the most common mistakes to avoid when selling a dental practice to ensure that your road to selling is as smooth as possible.
Trying to do it all on your own
As previously stated, selling a dental practice is often a complex and challenging process. One person is unlikely to have all the skills and expertise necessary to ensure that it goes off without a hitch. As such, while trying to save money by going through the process alone may be tempting, such a decision could cost you a great deal in the long run. Instead, consider enlisting the help of a qualified transition team composed of a financial advisor, attorney, and transition specialist to provide you with valuable advice and knowledge throughout the process.
Not keeping the transition confidential
It isn’t unusual for the process of selling a dental practice to take up to nine months to complete. During this time, it’s important to keep the transition private from staff and customers. If word gets out before you’re able to provide details regarding the transition, employees may decide to leave, and customers may bring their business elsewhere. This drop in business could result in a decreased selling price for your practice and look unattractive to potential buyers.
Inaccurately valuing your practice
Inaccurately valuing your dental practice can have several negative impacts. In addition to losing out on a lot of money if you value your practice too low, you could also deter potential buyers by asking for too much. As such, it’s important to utilize multiple valuation methods that are suited to your unique situation in order to get the most accurate valuation possible.
Not actually being ready to sell
Before embarking on the practice selling process, it’s essential to determine if you’re actually ready to sell. While this tip may seem obvious, many dental practice owners initiate a practice transition before they are fully ready. The main reason why dental practice owners decide that they don’t want to sell halfway through the process is due to poor financial planning. As such, we suggest hiring a qualified financial planner that will help you determine if you are financially ready to retire and set realistic monetary goals before trying to sell your practice.
If you’re looking for a team to help you put your dental practice up for sale, Henry Schein Professional Practice Transitions is your one-stop-shop. As the leader in dental practice transition planning, sales, valuations, and dental practice financing, we are committed to helping you succeed in every stage of the process. Our offices are located in states all across the U.S., including New York, Michigan, Florida, Georgia, Connecticut, and California. For more information regarding our services, contact us today.