The Smart Dentist’s Guide to an Emergency Exit Strategy
Why you need a dental practice Letter of Instruction and how we can help you create one.
For years you worked to get your dental degree and establish a successful practice—you’re clearly an intelligent person. Yet somehow you still don’t have a Letter of Instruction, a document every dental practice owner should have. Fortunately, you’ve landed on the right page with the best in the business: Henry Schein Dental Practice Transitions.
Whether you are just starting your dental practice, expanding it, planning to sell, or merging with another practice, having a Letter of Instruction at-the-ready is essential.
Need help now drafting a Letter of Instruction?
Let Henry Schein Dental Practice Transitions provide you with a downloadable template to simplify the process.
What is a Letter of Instruction for Dental Practices?
A Letter of Instruction is an official document that outlines what should happen to your dental practice in the event of an unexpected situation, such as a death or disability. It serves as a roadmap to ensure the smooth transition and preservation of your practice’s value. The document includes crucial information to help your family, financial advisors, or other trusted parties manage your practice during a difficult time. A well-prepared Letter of Instruction can prevent the depreciation of your practice’s value while providing guidance on important decisions.
Why Do Dental Practice Owners Need a Letter of Instruction?
Unexpected situations happen, and a Letter of Instruction ensures that your loved ones know exactly what to do to keep the practice running smoothly and preserve its value. Without a proper plan in place, it can become difficult to sell your practice or transition ownership, and the value of the practice can rapidly decline.
In fact, every week a practice remains unsold or without direction, its value may drop significantly.
Being prepared with a comprehensive Letter of Instruction guarantees peace of mind, especially if you have a family or significant other dependent on the practice’s continued success or sale.
Key Elements of a Letter of Instruction for Dental Practices
Financial Details
Clear instructions on handling bank accounts, arrangements with insurance companies, and credit cards related to the practice.
Health Care Directives
Specific text regarding patient care and dental procedures in your office.
Estate Planning
Information on how to manage your practice’s assets as part of your legacy.
Contact Info
List of and communication channels for beneficiaries, family members, financial advisors, or other key individuals
Personal Statement
Express any special requests for the practice and sentiments towards the staff and patients.
Letters of Instruction FAQs
How do I write a Letter of Instruction for my dental practice?
Follow the step-by-step process outlined in this guide, or use this complimentary template provided by Henry Schein Dental to ensure that your practice is prepared for any event.
What is addressed in a Letter of Instruction?
A comprehensive Letter of Instruction typically includes information on financial accounts, patient care instructions, and estate planning details.
Protecting your family may be the best reason to pair your Letter of Instruction with a Practice Valuation.
Your practice is probably one of your most valuable assets. Sometimes the unexpected happens leaving you (or your family) with the task of selling your practice as quickly as possible. That is why having a Practice Valuation, that has been completed or updated in the past 12 months is critical.
