TRANSITIONS, our quarterly newsletter, is full of useful information on transition trends from coast to coast. It’s chock-full of ways to build practice value and success and it’s only available from Henry Schein Professional Practice Transitions, the national leader in dental practice brokerage and transition.
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The Next Five Years for Practice Transitions
Learn about buying on emotion, the 1,2,3,4’s of good transition planning, new listings in your area and webinars...
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The Next Five Years for Practice Transitions
No one possesses a crystal ball, but given recent trends in our dental marketplace, it’s safe to say that things will be different over the next five years. Practice values remain at very high ranges in many of our metropolitan and suburban markets as there are more buyers than sellers. But when will that trend begin to reverse itself?
It is no secret that…Read More
How Should Your Associate Be Classified: Employee or Independent Contractor?
For many years, numerous advisers recommended that clients classify their Associates as Independent Contractors.However, the trend of classifying full-time Associates as Independent Contractors is shifting dramatically and numerous state jurisdictions have stringent rules regarding the classification of workers as such.
For Sale by Owner…A Smart Strategy?
For those doctors who are planning to sell their practice this year but have no potential buyers identified, the strategic question you must ask yourself is, “Do I want to sell my number one financial asset on my own?”
Many doctors want to assume responsibility for selling on their own primarily because they want to avoid paying a commission to a dental broker. Conversely, how many doctors try to sell their home without using a real estate agent? The answer is very few! So, what is the logic behind a dentist selling his/her practice on their own?
Delaying Your Transition Plan May Cost You!
As we begin 2014, many of us have made our New Year’s Resolutions. Is your #1 resolution going to be to transition your practice? Undoubtedly, the economy has taken its toll over the last five years for many practitioners. In fact, some of you had firm plans at that time to begin your transition, but could not financially make it happen. However, if your financial assets have increased since that time, to the extent that you are feeling fiscally comfortable, 2014 may be the year to make that transition happen! There are several reasons why this statement is true:
Top Ten Reasons
Why Associateships Fail To Result In A Practice Purchase
Most dentists hire an Associate for the expressed purpose of forming a partnership or for a complete sale. Many associateships fail to result in the desired outcome of a future fractional or complete practice sale. Let’s take a brief look at the most common reasons!
Making Your New Year’s Resolution
It’s that time of year again. We all make an honest effort to improve ourselves by making New Year’s Resolutions and usually for personal reasons.
Did you ever think of making a series of New Year’s Resolutions that relate to your practice transition plans? To help you with this exercise, here are a few resolutions to get you started:
Why Practice Values Vary Around the Country
There is a myth in the valuation world that dental practices only sell between 60 to 65% of their last year’s gross revenue. This is simply not true. In general, dental practice values can vary anywhere between 50 to 100% of their last year’s gross receipts based on the practice’s location.
Conversely, a region of the country that has a limited number of purchasers translates to lower practice values. On average, our experience valuing practices finds the values range averaging 50 to 75% of last year’s gross. Some exceptions apply that may drive values lower or higher.
Timing is Everything
It may come as a surprise to learn that many practices in certain areas of the country are now selling for a premium. However, according to recent ADA statistics, 39% of dentists have been delaying their retirement plans, most likely due to our sluggish economy, and have deferred their transition plans and are continuing to practice. This year may provide you with a window of opportunity if you are close to making that decision to sell your practice.
Simplified Valuation Formulas – Are They Reliable?
“How much is my practice worth?” is the first question that comes to mind for those considering selling their practice. The importance of obtaining an accurate practice valuation cannot be underestimated.
