3 Ways to Increase Your Dental Practice Value

If you’re a dentist contemplating selling your dental practice, few things are as important as your practice’s value. The dollar value assigned to your practice is not only a foundational element for your financial health but also has a massive impact on the deal.

 A high-dollar figure practice gives you an essential chip at the bargaining table when negotiating with a dental support organization or dental partnership organization. If you plan on selling your practice and staying on board in a dental partnership agreement, you are also incentivized to see the practice’s value rise even after the sale. Regardless of which camp you fall into, a rise in your practice’s value is always good.

However, increasing the value of your practice, whether you intend to sell or stay on as a partner, is challenging.  You may already be up to your neck in clinical care, administrative duties, and operational tasks. Finding the time to increase the value of your practice is a challenge. Luckily, there are proven ways you can increase value and plan for your financial future while still tending to your dental patients. 

Get an Accurate Assessment 

The first and easiest way to increase your dental practice value is to ensure you have the most accurate assessment! Too many dentists get caught up in the hustle and bustle of maintaining a dental practice and never get around to assessing their practice’s value. 

Even if you’ve had a valuation done in the past, you must understand whether or not it was accurate. Staying current with your practice’s value and getting a second opinion practice evaluation is the quickest way to ensure you know your practice’s true value. 

It can also be helpful to have multiple assessments done using various methods. Market-based, cash-based, and asset-based evaluations all have their time and place, and utilizing a variety of ways to appraise a practice offers a more complete picture. 

Invest In Tech

New tech is a crucial piece of growing the value of a practice. New and intricate medical technology can improve your practice’s operational and clinical efficiency, but investing in new tech can also increase the value of your practice. High-end medical equipment offers so many benefits for patient care that its presence can help improve a practice’s overall dollar value. 

Work on Improving Cash Flow

Improving your practice’s financial health can undoubtedly be difficult, but it will certainly increase the value of the practice. To begin, work on accurately measuring your EBITDA – or Earnings Before Interest, Depreciation, and Amortization. This financial score will accurately show how financially viable your practice is. 

From there, you can work on improving your overall financial health. Typically, additional cash flow or surplus revenue is one of the easiest ways to enhance the financial health of your dental practice. Additional customers, increasing collections per customer, or revamping your marketing are all great ways to do this. 

Partner With a DSO to Achieve Value

The aforementioned tactics for increasing your practice’s value are helpful to keep in mind, but they can be easier to set as goals than implement. If you’re struggling to keep the lights on, pay bills on time, and care for your patients, finding the time to improve cash flow, revitalize marketing, and invest in new technology is short of impossible. 

For dentists, partnering with a dental support organization is a great way to improve their practice’s value and operational efficiency, provide better patient care, and maintain a work-life balance. 

Partnering with a dental support organization can help with:

  • Operational Excellence
  • IT & Tech
  • Hiring & Training
  • Procurement & Purchasing
  • Marketing & Advertising
  • Continued Networking & Ongoing Education

If you’re looking to increase the value of your practice as an exit-strategy sale, a dental support organization or dental partnership organization could be helpful. These organizations will pay top dollar for lucrative and well-maintained practices, but a trusted advisor is imperative for your sales success. 

Selling a dental practice can take quite a bit of time, and there are many potentials for a deal to fall through. Everything from a lack of buyers to unqualified prospects to disagreement about terms and price can derail the sale of your practice. When you’re also attempting to keep the practice afloat and provide high-quality care, this can be too much for many dentists.

Partner with a dental broker for optimal outcomes! Triumphant Transition Partners is waiting in the wings to help you sell your practice on your terms and at your price! As dental brokers, we represent your interests and your interests only. We have years of experience on both sides of the deal and leverage that experience to ensure you get what you need from your sale!

Partner with Triumphant Transition Partners for:

  • Access to Our Buyer’s Network
  • Help Qualifying and Pre-Screening Buyers
  • Practice Evaluation
  • Help Through the Negotiation Process to Close.

Contact Your Trusted Triumphant Advisor for a Courtesy Consultation Today!

Should I Sell My Dental Practice?

Knowing if it’s time to sell your dental practice is tricky. Your practice has likely been a massive part of your life, and you’ve poured a lot of sweat equity into it. Deciding to sell your practice is no small task, and you can be forgiven for wondering if this is the right move for this particular stage in your career.  However, while it may be a difficult decision, that doesn’t mean there are no considerable benefits to selling. Selling your dental practice can:

  • Fund Your Retirement
  • Build Generational Wealth
  • Get Your Nights & Weekends Back
  • Improve Management of the Practice
  • Improve Patient Outcomes 

There are many reasons to sell, whether you intend to stay on as a dentist or leave the practice of dentistry, and it can be lucrative if done right. However, selling your dental practice can decrease your job satisfaction and leave money on the table if done poorly. 

 Consider these questions as you weigh the decision to sell! Knowing is half of the battle when it comes to selling your practice. Consider the questions below to maximize your dental practice sale.

Do You Want to Stay in Dentistry?

When considering selling your dental practice, you must consider your long-term goals. Many dentists look to sell their practice without fully understanding their long-term goals. The decision to stay in dentistry is one of the most vital – the reason why is relatively simple. 

If you are looking to sell, knowing what the buyer needs from you is critical. Some dental support organizations specialize in long-term transitions and will want to keep a seasoned dentist around for some time while they assume responsibility for the practice. Others are fine with cutting the selling dentist loose and assuming control of the practice almost immediately. 

Knowing if you would be amenable to continuing to practice dentistry is a vital part of this process. If you aren’t ready to stay in dentistry, selling your practice to a dental support organization that wants you to stay on isn’t a good call. 

Are You Ready to Retire?

Knowing if you’re ready to retire is key to understanding if you’re prepared to sell. Many dentists use the sale of their practice as a springboard into retirement. If you are nearing that stage of life and are seriously considering retirement, then the sale of your practice is a great tactic to enter your golden years on your terms. 

Selling a dental practice as a transition into retirement comes with its own considerations. If you hope to retire soon, you likely cannot agree to any deals that will keep you on board as a practicing dentist for a substantial time. 

Are You a Solo Decision Maker?

The sale of a dental practice can look very different from one practice to another. A solo practitioner will be able to decide on their own. A more extensive practice with several dental associates may see a different sales process. 

If you are a dentist looking to retire, selling to your younger associates is often a more straightforward and quicker process. If your associates cannot commit to buying your equity or are interested in bringing on external support, then an external buyer might be a good call. Consider your unique situation when deciding if you want to sell or not. You can sell as either a solo practitioner or a larger, multi-associate practice; the specifics will look slightly different from one instance to another. 

If You Want to Stay in Dentistry – On What Terms? 

If you want to stay in dentistry, it is essential to consider all of the factors. Do you like to pass most of the administrative maintenance of the practice to a DSO but stay on as a provider of clinical care? Do you want to stay on as a dentist with the DSO for a set amount of time and then transition to something else? Do you want to work with a DSO but need to retain control of key decisions like hiring, firing, and marketing? Knowing your desired terms is vital to determining if you are ready to sell. 

Sell Your Dental Practice with Triumphant Transition Partners

Selling a dental practice is challenging work. Streamline and expedite the process with Triumphant Transition Partners! Partnering with a dental broker with experience on all sides of the deal process can help you sell your practice on your terms and at your price to a buyer that meets your needs. 

Call your Triumphant Transition advisor for a courtesy consultation to discuss your options! We can help you:

  • Come Up with a Go-To-Market Strategy
  • List Your Practice
  • Screen and Qualify Buyers From Our Private Buyers Network
  • Draft Letters of Intent
  • Negotiate Through the Close Process

Call Now!