Dentistry can be a challenging industry. Many dentists have poured countless hours into their careers to reach the point of owning a dental practice.
You’ve invested an immense amount of time, from undergrad to dental school and beyond, to get here—and now, you might be wondering how to effectively sell your dental practice. It’s not an easy feat, but it is a worthy one. Selling your practice to the right buyer can be an excellent springboard to the next step in your career, whether that’s retirement, growing your practice, or finding a better work-life balance.
However, it’s not as simple as posting your practice online. You’ll need to ensure you’re selling to the right buyer, which isn’t always easy. This is one of the most significant career decisions of your life; the stakes are high. To help demystify the process and guide you through selling your dental practice, the transition experts at Triumphant Partners have put together this step-by-step guide. Read on to learn exactly how to sell your dental practice.
Know Your Value
Knowing the value of your dental practice is the first step in the process. Without an accurate understanding of its worth, you won’t be able to evaluate offers from interested buyers effectively. You might relate this to selling your house – before beginning the process, you must first know its value. Determining this value can be difficult, but just as with your dental practice, it’s critical that you get the assessment correct. If you don’t, then you could be drastically underselling your practice – or, in the case of this example, your house.
Even if you think you “know” your practice’s value, it’s wise to return to this and reassess. Many common valuation methods might undervalue your practice or overlook relevant aspects that make it more enticing to a buyer. Your dental practice is complex; estimating its value accurately is equally complex and an essential step before you sell.
Know Your Goals
The dollar value of your practice is, of course, important, but every dentist is different. The right business deal for one dentist might be a poor fit for another. That’s why it’s critical to clarify your goals and assess prospective offers against them. Would you prefer to work with a large organization with ample resources and strict processes? Or would you rather have more day-to-day flexibility? Knowing your goals helps you better understand your ideal outcome and adjust your expectations accordingly.
Know Your Preferred Buyer
Any good marketer knows their target demographic when launching a new product. They can describe the demographic and socioeconomic details of their buyer, their motivations, pain points, and potential objections. This detailed ideal customer profile helps the world’s biggest brands understand buying behavior and tailor marketing to attract potential buyers.
While you may not need to know all the specifics that a Fortune 500 company does, you should have a clear idea of what is and isn’t a good fit for you as a seller. For instance, if you want substantial flexibility, many dental support organizations might not be suitable for you. Conversely, a dental support organization could be a great fit if your focus is primarily on patient care and outcomes.
Know Your Advisor
A trusted dental practice advisor is invaluable to the sale and transition process. You may know the dental industry well, but the ins and outs of practice sales and transitions are a different realm. An industry expert with strong business relationships and deep familiarity with practice transitions is a valuable resource. If you’re looking for a dental practice transition advisor, look no further than Triumphant Partners!
A dental practice transition advisor can:
- Help You Develop Your Ideal Customer Profile
- Evaluate Your Practice Finances & Assess Its Value
- Screen Potential Buyers & Assist with Drafting Letters of Intent
- Keep You Abreast of Market Trends
- Inform You of Common Pitfalls in Deals & What to Keep an Eye Out For
- Help Create a Full Auction and Bidding Process
Call now for your courtesy consultation!
